Driving Sustainable Engagement with AI-Powered Personal Styling

A major fashion brand sought to meaningfully address the fashion industry's core problem of overconsumption and textile waste. The business goal was to build a new, non-resource-intensive revenue stream by leveraging AI to shift consumer behavior, making the most sustainable option—maximizing the use of existing items—the attractive and simple choice for consumers.

Our strategy was to leverage the large market size of fashion-conscious consumers who prioritize convenience, and target the root cause of consumption and waste. We simultaneously created a new venture focused on digital styling to build a sustainable, non-resource-intensive revenue stream.

1. Developed a personalized D2C mobile application focused on fashion-conscious users seeking trendy styles and maximizing their closet value.

2. The app's core value proposition is personalized styling based on items users already own. It enables users to digitize their wardrobe, get instant style advice from a virtual stylist, customize outfits, and use a "Should I Buy?" quiz to evaluate if a new item complements their existing closet.

3. Built and validated an in-house AI styling algorithm that curates new looks using a user's digital wardrobe, thereby promoting conscious purchasing.

4. Focused on validating product-market fit through a rigorous pilot, achieving strong early-stage metrics and building core monetization infrastructure through partnerships with key retailers via global affiliate platforms.

The pilot successfully proved strong early-funnel metrics and market validation. The solution achieved impressive results:
- 75.02% Activation Rate (Target: 34%)
- a 7-day Retention Rate of 10.8% (Target: 3%).

Furthermore, the average acquisition cost, Cost Per Install (CPI), was €4.51, which was 18% below the initial target. This established a high-potential new venture with a clear path to profitability, projecting a Break-Even Point in 36 months and cumulative revenues exceeding €150M by 2028.

Learn more! Looking to build a venture that drives conscious consumer behavior and opens new digital revenue streams? Let's discuss how we can leverage AI and D2C channels.