How Falabella Leverages Visual Product Discovery to Create Innovative Customer Journeys at Scale

2.5%
Higher RPV*
2.4%
AOV Uplift*

Falabella, Latin America’s largest department store, was looking for new ways to innovate and differentiate its online shopping experience. Founded nearly a century ago, the Chilean company is the largest distributor of apparel, accessories, and household products in the country, and has since expanded operations to Argentina, Peru, and Colombia. As Falabella’s multinational presence grew, the retailer focused on a technology-first approach that would make it easy and delightful to navigate its extensive inventory online.

*The numbers represent A/B test metrics from Falabella’s Shop Similar carousel. The stats reflect users that saw the carousel, which had coverage of approximately 30% of Falabella’s products.

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THE CHALLENGE

Innovating the Online Shopping Experience

Falabella initially sought to create a differentiated experience on its app. With fashion and apparel as the primary category, the Falabella team knew they had to provide a more visual search and discovery journey to win over online shoppers. After exploring the possibility of building visual search in-house, Falabella soon decided to seek out a visual AI vendor that could provide more accurate results in each of its verticals alongside an easy-to-use interface that would enhance the customer experience. What’s more, as Falabella worked towards building a massive online marketplace that would bring together its four subsidiary retailers and independent sellers under one digital roof, the company needed a solution that would continue to provide results at scale.

THE SOLUTION

Visual Product Discovery Designed to Scale

Upon exploring Syte’s solutions, Falabella immediately understood it could enjoy the benefits of visual AI well beyond image search. The retailer implemented Camera Search on its app, alongside Shop Similar and Shop the Look recommendations on both desktop and mobile. After seeing the impact on conversion and incremental sales that these new experiences provided, Falabella incorporated Merchandising Rules to optimize the selection and order of items presented within the recommendation carousels. Following the positive impact on Falabella’s flagship website, the mega-retailer is now seeking to implement additional Syte solutions across its four subsidiary retailers on the new Falabella.com online marketplace.

“Syte has been an important partner for Falabella, allowing us to create the innovative, visual experiences that draw in our customers, and we see the direct impact of that in our conversion rate and sales. We’re excited to continue growing together with Syte.”

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