Korean fashion brand Dali Hotel achieves KRW 100 million weekly with no marketing expenditure, thanks to AI filling the roles of top management whether creative director or merchandisers.

After the majority of its fashion staff left, the officewear brand Dali Hotel, which was acquired by generative AI company Designovel co-representatives Woo-Sang Song and Ki-Young Shin, successfully recovered its earnings.

Post-pandemic, Dali Hotel was purchased by Designovel, with whom it had an AI partnership, and this ultimately resulted in the brand’s resurgence.

The main reason for Dali Hotel’s recovery is the change in the brand’s operation using generative AI – Designovel’s key technology and the prime focus it kept on ‘data’.

Designovel spends only 2.5 percent of Dali Hotel’s monthly sales on marketing, which means that it has many products selling well without much advertisement.

Based on an analysis of recent trends from the previous three to four years, they deployed products for the sales plan that were on the upswing. Using ‘Vector Search’ developed by Designovel, the company developed key products that will drive sales by checking the variation in consumer demand. Based on the trends and designs predicted and suggested by generative AI, products were created and in this way, they were able to produce and sell goods that catered to people’s tastes ahead of others.

Data helps in deciding when, to whom, and at what price to sell in addition to revealing trends.

AI has two major responsibilities: firstly to find the price range that consumers respond to and secondly to set the best price. Making decisions based on data, as opposed to decisions made in the past based on human intuition, is the key differentiating factor.

CEO Ki-Young Shin of Designovel commented, “We need to wait a little longer until generative AI model can make money. We could see that by using AI, we could make money faster and more efficiently. We also confirmed that our AI model worked accurately in the market and that it had marketability.”

The fashion brand’s successful recovery through Designovel’s fashion market analysis services on the retail market, etc., and generative AI awakens our curiosity for more news on business development based on generative AI.