Target relies on generative AI and social media to capture trends

Diving brief:

• Target uses social media and generating AI to organize its digital experience and help customers discover products, managed managers said during a profit call that the company held Last week.
• According to Cara Sylvester, executive vice-president responsible for the guest experience of Target, more than a third of customers use the application of the retailer during shopping in stores in stores. “This gives us not only additional means to merge our shopping experience in store and digital, but it also leads to more opportunities to stimulate sales through recommendations and promotions of convincing products,” said Sylvester during the call.
• Since consumers often start their online purchasing journey, Target enlist the AI ​​to catch the emerging social media trends in order to strengthen relevant products more quickly, said Sylvester.

Diving insight:

Target mixes its product discovery process between channels to capitalize on the interest of consumers. Last year, when the Target AI tools saw the aesthetics of the wife of the crowd Leopard was trendy in Tiktok, inspired by the 25th anniversary of “The Sopranos”, the retailer consulted its sellers to obtain relevant online products in the days and on the shelves of stores in a few weeks, Commercial Director Rick Gomez said during the call.

“We were able to quickly amplify everything related to the leopard print on our platforms as it was trendy, capitalizing on this cultural moment as it occurred rather than reading and reacting afterwards,” said Sylvester. “These are not stores or digital or social, it is all working together. We connect our digital experiences with our store experience already loved unlike anyone. »»

Gomez at the National Retail Federation Conference in January told the public that targets shortened his essential market cycle time From 7 months to 8 weeks to list specific trend items and reach customers faster.

Whether thanks to influence recommendations, products on products or customer service, buyers interact new ways with social media when they think about what to buy while customizing the shopping experience.

Recommendations generating AI and Social Media Continue to conduct as main source of purchasing decisions by consumers. A Capgemini survey revealed that nearly 3 in 5 consumers have gone to a generative AI to replace traditional search engines.

Target in particular uses a generative AI to improve the customer experience.

Target uses a generative AI to summarize reviews on invited products, adding details to its product pages and Build a generative gift gift fed by AI To help guests during the holidays, according to Sylvester.

Target undergoes a multimyear strategic plan To exceed $ 15 billion in sales growth by 2030. The retailer will reorganize its goods in certain categories and will open 20 stores this year, with plans to renovate “many others”. Target reported “a short drop” in net sales for its fourth quarter. The retailer said he expects the uncertainties of consumers and prices to put pressure on the benefits of the first quarter.