Blend, a UK-based startup, is revolutionizing the online shopping experience by using generative AI to provide personalized clothing recommendations. Unlike many retailers that rely solely on historic purchase data for personalization, Blend takes into account changing trends and individual style preferences, making it a game-changer in the industry.
Key Takeaway
Blend uses generative AI to deliver personalized clothing recommendations, taking into account changing trends and individual style preferences. By collecting user interaction data and using transformer technology, Blend’s AI system provides tailored suggestions and helps users find the right fit for their body type. With its innovative approach, Blend aims to become the go-to platform for personalized online shopping experiences.
The AI-Powered Shopping App
Blend recently launched its Minimum Viable Product (MVP), an app that is open to the 2,000 users on Blend’s waiting list. The startup plans to raise funds for its seed round to expand the features of the app and launch it on a larger scale. With over 250 retailers, including luxury brand Net-a-Porter, already signed on, Blend is targeting digital-savvy shoppers aged 18 to 34 who are looking for personalized fashion recommendations.
By using transformer technology and recommendation algorithms, Blend’s AI system understands user preferences and provides tailored clothing suggestions. Data collected from user interactions, such as liking, saving, or sharing products, is used to create a comprehensive profile of each user. As users continue to engage with the app, the recommendations become increasingly personalized.
Creating a Dynamic and Inclusive Shopping Experience
Blend goes beyond just recommending the right outfit for today; it tracks a user’s style changes over time. Additionally, the app helps users find the right fit for their body type, addressing a common challenge faced by both consumers and retailers. Through user-generated content, Blend aims to provide diverse representations of products on various body shapes, allowing users to see how specific items look on different frames.
Business Model and Revenue Opportunities
Blend’s business model revolves around three key components: shoppers, influencers, and brands. Influencers and brands partner with Blend to diversify their revenue streams and reach a wider audience. For brands, Blend acts as a powerful marketing platform, offering highly-targeted advertising options based on users’ style-specific data.
Blend earns commissions on sales made through partner brands and retailers, with rates ranging from 3% to 22% of the product’s price. In the future, Blend plans to explore additional revenue streams, including advertising, data and analytics on trends, and forecasting product demand and sales quantities. The startup may also introduce a subscription service for users, offering premium features such as end-of-stock alerts, discount notifications, and early access to brand products.
