This is the transcript of a session given by Filipa Neto of Farfetch at PI Apparel Europe in Milan. The talk can be watched in full here.
These experience where you can try for sneakers, watches and beauty in this immersive world and you can basically swipe and try on, let’s say, different styles and compare. There’s endless opportunities here. Right. The recommendations can be powered to suit your your esthetics, direct the list of products can be mono brand with just one brand featured on the carousel.
And we are seeing that people just continue to engage with more products and they really like to see the comparisons. And again, this is on top. The results we are seeing here are on top of the already positive results we shared with you on the AB test. I love this picture. I love this experience. I think it’s probably made me fell in love with this bag that I didn’t like it so much before.
So we also launched the 3D bag viewers. We’re expanding again the categories, the experiences that we are launching. So on the left, what you see is usually imagery when you go to a website, 2D and on the right, we’re not only giving a more immersive experience, but all our experiences are now solving as well for a size and fit opportunity.
So what you see in the first screen, you basically are able to see the measurements of the item and you can also see what items can the bag actually hold. So again, this is just very practical and from a user perspective is enhancing how this shopper feels about the confidence on purchasing this item. So right now, this is not in a B test, but we can share with you that 20% of the conversions that we see on backs are assisted by virtual trial.
So pretty much 20% of the purchases interacted with the 3D back viewer. When we look at a two week window before Beyonce talking about virtual fashion items, we also are digitizing 3D models. So as part, again of expanding the digital fashion opportunity, Farfetch has also tested and later on acquired a company called Allure Systems. What they do pretty much is they virtualize a model in 3D and then we no longer are leveraging human models in our shoots for part of our photography.
So this technology has been embedded in our creative operations studios is now scaling, and it also allows us to have a lot more diversity in model inclusion as well. We’ve been able to roll it to three studios and it really increases the productivity overall of the photoshoots we can do maintaining the quality. So once you scale these very, very hard to maintain the creative standards and what technology here is allowing to do is as we scale, we can maintain the quality standards.
So we will continue to develop this technology. We’ll continue to scale it as well. But what’s next? There are three pillars we’re focusing on. There are still challenges, of course, in scaling 3D assets production. It’s getting better and better and we are going to move faster and faster. But this is one of the things is making sure we move from the 10% catalog coverage into much higher.
I think what is exciting and also I wanted to share this with you is when we talk about 10% catalog coverage, we are not talking about 10% of sales. Luckily, we basically have 10% of our best sellers, which can translate into 40 50% actually of impact of revenue for that same category. The second one is new experiences. So there’s a lot more coming up.
A lot of the exciting categories that that we cannot share yet, but that I do think people are already looking to test and explore beyond the accessories and bags. What shoes make up that we talked about before. And the third one is we will continue to nurture and invest in the improvements and iterates and continue to measure everything through testing, which I think is very, very helpful because we can then share these outcomes to the industry and build better solutions for everyone.
Another big topic are the AI developments. So in general, AI developments will allow for digital fashion experiences to have more quality but also be cheaper. It will be incredibly important to use generative AI to create content and lower the cost of content. It will increase the quality and some of the physics of the materials that we are going to have yet today.
We’ll be able to be done tomorrow in an effective way, in a scalable way. And then utility. The more experiences there are, the higher the ROI will be, because with one 3D asset you can actually leverage it at multiple touch points. And this is one of the trends that we we are seeing.
So I want to thank everyone for coming and let me know if you have any questions.
There’s one question or we wait one minute.
All right. If there are no more questions, I’m also available outside if you want to reach out. Thank you, everyone. there’s how can brands that are already create their 3D assets leverage them on farfetch? Okay, I didn’t know. So you had a timer for one minute? No, this was all okay. How can brands that already create 3D assets leverage them on Farfetch?
So it depends on the 3D asset you have available. So for example, if you already work with if you’re a brand that already works, we want to it’s very, very easy for us to integrate in the Farfetch experience. And actually we have already some clients that started as B2B clients and then become B2B plus marketplace clients. That’s one of the big advantages is it just increases the audience and exposure.
It is very hard without knowing exactly what the 3D essence specifications because we have certain guidelines. But let’s talk outside and revolutionizing the luxury industry, the future of digital experiences. That’s a good question. We’re going to be able to share more soon, but I cannot share today around clothing and in apparel. And of course, that’s the big categories that everyone wants to talk about.
But it’s coming. How are you creating your 3D products in-house or via suppliers? It’s a hybrid experience. Okay. So pretty much we have played a lot in that space and we have analyzed what is the best way to create 3D assets for each one of the categories, because sometimes the best way to create a big is not the best way to create a watch.
So pretty much we have a category by category approach. We are more and more working with, especially for for sneakers, for example, putting some of these structures in-house. Having said that, we have an extended ecosystem of partners that we work with for each one of the categories, and this is just part of Farfetch DNA we will always partner.
I don’t see it as we will only do it internally. This is highly complex. There’s always great new companies emerging waiting for edible technology. So we will definitely, if there’s anyone in the room with great technology for three years of creation, please come and talk with us, because we are we are partnering across the board there as well.
What about denim in 3D? Is so an interesting one. I don’t have an answer for you yet. Maybe this can be connected with the clothing in apparel, depending on the use case. I don’t I don’t recall any any use case we have done with with denim. Not yet. You showed the example of the yoga. Would that be possible to also see the inside of it with the 3D technology, you have not yet.
But again, we are always evolving and we know this is one of the big requests and we are always talking with brands, We’re always talking with clients. So pretty much very likely in the in the pipeline. Thanks for that. Is Farfetch noticing any disproportionately interest across digital categories more interested in sneakers versus cozies versus watches? We have different levels of testing then, right?
We are more mature on the types of testing we’re able to do on the categories. Where we have more SKUs is a different testing approach. Then the testing approach we have when we launch something new. Okay, so it’s for us how we are comparing and what gives us a good, good sense of this is going in the right direction is the percentage of assisted conversions is not too dissimilar.
Okay. So it’s pretty much we are seeing the same levels of engagement in the different experiences. So people basically that used to the experience, they are converting it to at a similar rate in that two week window. And that’s it. All right. Thank you, everyone,
