AI Strategy at Prada

The Prada Group owns several luxury brands and aims to enhance their value by creating personalized engagements in stores and across digital channels. When Cristiano Agostini joined Prada in 2021 as chief information officer, he was tasked with completely overhauling the company’s technological systems.

Agostini and his team mapped out a plan that involved some immediate steps, like improving the brand’s website and payment systems—but also exploring the technologies of the future, including everything from generative AI to the metaverse. Over the past two and a half years, he’s worked to transform Prada’s systems, often in ways that aren’t visible to the customer but make a noticeable impact on their shopping experience. Oracle's cloud-based retail solutions have been deployed to collect customer preferences and purchase habits. The Group partnered with Sprinklr to consolidate point solutions onto its AI-powered platform to identify and engage with its Millennial and Gen Z audience

For instance, thanks to Prada’s partnership with the payment platform Adyen, customers can buy a product in-store through the store assistant’s phone without even having to wait in line at checkout.

Prada has integrated technology into its luxury goods business, using AR and RFID technology to improve the efficiency of its supply chain and prevent counterfeiting. The brand has invested in e-commerce, offering a seamless and personalized shopping experience with virtual try-ons and customized product recommendations. Prada's digital-first strategy has increased its brand visibility, reaching a younger demographic and fostering deeper customer relationships. A dedicated internal team of data scientists at the Prada Group will use Adobe Sensei, Adobe's artificial intelligence (AI) and machine learning solution to gain deeper and richer customer insights and deliver high-quality content faster.

In summary, Prada as a luxury brand has adopted several innovative strategies to enhance customer engagement and shopping experience:

Augmented Reality (AR)

It has integrated Augmented Reality (AR) technology that enables customers to try on their products virtually, providing them with a realistic visualization of how the products would look on them without physically visiting a store.

RFID Technology

Prada has also implemented Radio Frequency Identification (RFID) technology to manage their supply chain and reduce the risks of counterfeiting, a common issue in the luxury goods market.

E-Commerce

To extend its reach to a global audience, Prada has invested heavily in e-commerce. The company's online store offers a personalized shopping experience, including virtual try-ons and personalized product recommendations, that foster deeper customer relationships.

 Digital Marketing

Prada has also embraced digital marketing strategies such as social media platforms and influencer marketing to engage with a younger demographic and increase brand visibility. These efforts have led to Prada becoming one of the most recognizable luxury brands worldwide.

One key advice from Prada’s CIO: “We never start with a huge pilot. We test things and when it starts to work, we scale it quickly. Because the reality is that none of us is able to perfectly predict the future, so we need to be trying everything.”