WEBVTT - FindMine Founder and CEO Michelle Bacharach Talks AI

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news. Brands are competing to

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<v Speaker 1>win over holiday shoppers this season, as they always do,

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<v Speaker 1>with some retailer returning to AI know lest to combat

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<v Speaker 1>higher costs. Joining us to discuss this now is Michelle Bacherox,

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<v Speaker 1>founder and CEO of find Mine, an AI styling technology,

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<v Speaker 1>And Michelle have to ask you to start with, how

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<v Speaker 1>do you know me?

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<v Speaker 2>So?

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<v Speaker 1>Well? I hold off on clicking if I can onto things,

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<v Speaker 1>and I try to be pretty good about not accepting

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<v Speaker 1>extra cookies and so on, and yet I seem to

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<v Speaker 1>be targeted with the exact style that I would go

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<v Speaker 1>and pick. What are you doing at find mine and

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<v Speaker 1>other places to have that happen?

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<v Speaker 3>Well, clearly you and I are being targeted the same

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<v Speaker 3>because I got the memo with bread today. So you know,

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<v Speaker 3>retailers and brands are always trying to provide better service

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<v Speaker 3>to their customers. What find Mind does is actually help

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<v Speaker 3>elevate your style sensibility through the lens of the brand.

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<v Speaker 3>So if you think about all the millions of people

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<v Speaker 3>out doing last minute Christmas shopping right now, they might

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<v Speaker 3>be walking by a beautiful window display that's very curated

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<v Speaker 3>and inspirational it's really hard to do that online. And

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<v Speaker 3>so what find Mind does is AREI trains uniquely on

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<v Speaker 3>what the brand's editorial point of view is, so we

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<v Speaker 3>can deeply understand how that brand wants to elevate your

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<v Speaker 3>sense of style, and then we can do that at

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<v Speaker 3>scale by showing for every single individual product exactly how

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<v Speaker 3>to wear it, and not just how to wear it,

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<v Speaker 3>but how to wear it in all the different cores

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<v Speaker 3>and trends and things that are happening on TikTok and

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<v Speaker 3>very of the moment.

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<v Speaker 1>So some of your brands include gap ATLTA, Old Navy,

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<v Speaker 1>you know the parts of Gap Packson, Grayson Men's Warehouse,

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<v Speaker 1>and so on. So you have a lot of retailers

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<v Speaker 1>out there. Are you saying that you take their vision

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<v Speaker 1>and have its style itself, or are you adding things

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<v Speaker 1>to it? Or are you putting together customers personal information

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<v Speaker 1>with the brand style.

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<v Speaker 3>It's a mix of all of the above, honestly, and

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<v Speaker 3>I feel like that's really the holy grail. Personalization with

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<v Speaker 3>such a big topic in retail for a long time,

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<v Speaker 3>and retail technology when really hard and deep on personalization.

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<v Speaker 3>But what ends up happening is that if you just

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<v Speaker 3>follow the pattern of what the customer buys. They never

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<v Speaker 3>really get better, they never become more stylish. We all

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<v Speaker 3>stay stuck in our rut, whereas what the brand has

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<v Speaker 3>is this sort of unique aspirational view for how stylish

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<v Speaker 3>you could be right, and that actually helps you become

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<v Speaker 3>a better customer for them too, because you come back

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<v Speaker 3>and buy more frequently. So it's fine mine. What we're

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<v Speaker 3>doing is we are personalizing to then consumer, but we're

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<v Speaker 3>helping the brand's editorial vision for how you can be

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<v Speaker 3>a more stylish person come through so that you end

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<v Speaker 3>up coming back and buying more frequently. In fact, we

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<v Speaker 3>increase eight percent the repeat purchase rate of customers coming

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<v Speaker 3>back to these sites, which in retail, you know most

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<v Speaker 3>customers visit a website once and never come back, and

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<v Speaker 3>you might not even be profitable on the first visit.

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<v Speaker 3>So that has a really big impact on the bottom

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<v Speaker 3>line of these brands.

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<v Speaker 2>When you're talking to brands, how do they kind of

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<v Speaker 2>navigate some of these forces? For example, you're talking about

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<v Speaker 2>how do you know me so well? For me, I'm

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<v Speaker 2>a total sucker for Instagram shopping and I don't mind

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<v Speaker 2>being told so much about what I might like usually

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<v Speaker 2>I do, and they're getting they're finding, they're finding you

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<v Speaker 2>one one way or another. And so if you think about,

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<v Speaker 2>you know, how they navigate this social media atmosphere too,

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<v Speaker 2>and the way people are buying maybe differently. Then you know,

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<v Speaker 2>I grew up in Paramuse, New Jersey. It's kind of

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<v Speaker 2>like the main country of malls here in the United's

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<v Speaker 2>likes the main city of malls. But you know, I

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<v Speaker 2>can't remember the last time I went there, So how

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<v Speaker 2>do you navigate the different ways people are buying online?

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<v Speaker 3>You know, people like clamor to online in the industry

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<v Speaker 3>because they were like, Wow, what an expensive way relatively

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<v Speaker 3>to having all this real estate. But actually, what people

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<v Speaker 3>are finding is that online is very expensive to operate,

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<v Speaker 3>not just from a cost of you know, hosting and

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<v Speaker 3>infrastructure and engineering resources and all the things that go

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<v Speaker 3>into it, but customer acquisition costs is crazy high. Facebook

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<v Speaker 3>and Google or Meta and Google are getting insane amounts

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<v Speaker 3>of money from these brands and retailers to acquire those customers.

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<v Speaker 3>And so one of the things that we're helping these

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<v Speaker 3>brands to do is is cacbust to avoid having to

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<v Speaker 3>pay a paid advertisement by getting in on the organic

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<v Speaker 3>conversations that are happening on social by being on trend

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<v Speaker 3>and sort of the moment so that we can capture

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<v Speaker 3>your attention, we can target you. It's meaningful and you

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<v Speaker 3>don't mind, you know, getting targeted that way. You're getting

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<v Speaker 3>something that's helpful for you. But at the same time

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<v Speaker 3>not losing all this money to Facebook and not losing

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<v Speaker 3>all this money to Google, because you're just part of

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<v Speaker 3>the organic conversation that people want to be having on

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<v Speaker 3>these social channels.

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<v Speaker 2>Okay, so what role do celebrities play because I don't

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<v Speaker 2>think it was just Beyonce this year, but the cowboy

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<v Speaker 2>chic came back in a big, big way. And so

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<v Speaker 2>do you see that capitalizing on what Taylor Swift, what

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<v Speaker 2>Beyonce and what other kind of major celebrities have been

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<v Speaker 2>doing has been a big part of the story for

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<v Speaker 2>those brands to capitalize on what people want.

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<v Speaker 3>Absolutely. I mean, Blake Lively showed up to the Super

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<v Speaker 3>Bowl earlier this year and an Adidas tracksuit with this

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<v Speaker 3>crop top and it wasn't available on the site. I mean,

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<v Speaker 3>what a what a missed opportunity. So I think that

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<v Speaker 3>celebrities do these drive bys. I mean People used to

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<v Speaker 3>talk about Oprah on her live show, mentioning a website

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<v Speaker 3>and that website would crash it was an Oprah drive by.

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<v Speaker 3>You have to be ready for those celebrity drive bys

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<v Speaker 3>to capitalize on that trend, and that might mean shopping

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<v Speaker 3>your own inventory as a brand. A lot of brands

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<v Speaker 3>aren't like she, and they're not able to react and produce,

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<v Speaker 3>you know, cowboy core stuff immediately if they don't already

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<v Speaker 3>have it an inventory, but a lot of it. A

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<v Speaker 3>lot of the style comes down to the combination. Right.

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<v Speaker 3>You might have jeans, you might have boots, you might

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<v Speaker 3>have flannel shirt, and just by putting them together and

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<v Speaker 3>pairing them and creating a quick landing page, that's your

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<v Speaker 3>cowboy core landing page. You can capitalize on that trend

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<v Speaker 3>where you know you might have manpower to do that

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<v Speaker 3>for every single trend. People might not be working sheltering

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<v Speaker 3>an inventory.

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<v Speaker 1>I should do I should chuck my own inventory instead

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<v Speaker 1>of buying new Do you have a ready boyre? I

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<v Speaker 1>have way too too much. I'm surprised I also have

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<v Speaker 1>too much? Helbig or what is your opinion on fashion? AI?

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<v Speaker 1>Fashion models? Because they've been quite there's been a lot

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<v Speaker 1>of talk about them, whether they're a good thing, whether

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<v Speaker 1>they're not so great a thing, whether.

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<v Speaker 3>They even work absolutely. I think there's two main issues

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<v Speaker 3>with AI fashion models. One is sort of the rights issues.

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<v Speaker 3>You know, models don't want their beauty training the AI

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<v Speaker 3>and then using that to put them out of a job, right,

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<v Speaker 3>That's that's a double whammy of bad for fashion models.

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<v Speaker 3>And then there's also issues around sort of you know,

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<v Speaker 3>unrealistic and unattainable beauty standards, which are already sort of

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<v Speaker 3>unrealistic and unattainable from what we're seeing on Instagram, but

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<v Speaker 3>it's just taken to this next level. So there's that

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<v Speaker 3>societal ill that might be coming down the pike with

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<v Speaker 3>these models. So that's kind of one camp. The other

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<v Speaker 3>side of things is the quality. So the AI is

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<v Speaker 3>not high enough quality yet to produce something that is

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<v Speaker 3>photorealistic without what they call hallucinations, and in AI parlance,

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<v Speaker 3>that might be a sixth finger, it might be the

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<v Speaker 3>eye that's a little droopy, the you know, skin tones

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<v Speaker 3>that don't match because they're Frankenstein monstering together parts of

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<v Speaker 3>people to take one you know, humanoid looking thing. So

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<v Speaker 3>those all those issues will get resolved, you know, in

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<v Speaker 3>the next couple of years. But for the meantime, for

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<v Speaker 3>what Fine Mine does, We're producing assets that are seen

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<v Speaker 3>by one hundred million consumers a month, and most of

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<v Speaker 3>those assets are getting produced in real time, so there's

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<v Speaker 3>no market.

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<v Speaker 1>Find Mine, Michelle. You've raised something like almost twenty million

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<v Speaker 1>dollars by now, which is you know, great going. You've

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<v Speaker 1>been around for a few years. What's the plan for

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<v Speaker 1>the next stage four? Fine Mind? Because there must be

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<v Speaker 1>other companies out there competing with you, absolutely, and.

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<v Speaker 3>I think that one of the big things that I

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<v Speaker 3>talked about earlier with respect to the personalization being a

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<v Speaker 3>huge trend. I think brands are catching on that they

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<v Speaker 3>need to have an editorial point of view that is

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<v Speaker 3>different than their competitors in order to survive. Because if

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<v Speaker 3>you're buying leggings and all the athleadsire brands look exactly

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<v Speaker 3>the same, guess what you're going to buy the cheapest

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<v Speaker 3>leggings you can find it, it's a price raise to

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<v Speaker 3>the bottom. So the way that brands survive and thrive

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<v Speaker 3>in this new paradigm of fierce competition, of changing customer journeys,

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<v Speaker 3>of disintermediating sort of web experiences as we know them

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<v Speaker 3>really comes down to elevating that brand in the minds

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<v Speaker 3>of the consumer, and that's really where we're headed. You know,

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<v Speaker 3>the way we shop is dramatically going to change. Siri

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<v Speaker 3>is just going to know you have a web a

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<v Speaker 3>wedding coming up because she's plugged into your calendar on

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<v Speaker 3>your phone. She's going to know what you have in

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<v Speaker 3>your closet because she has all your photos. She's going

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<v Speaker 3>to know what you like and what you buy because

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<v Speaker 3>of your order confirmation emails, and she's just going to

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<v Speaker 3>suggest you stuff to buy.

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<v Speaker 2>I think your web Michelle, we we got to leave

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<v Speaker 2>it there. Thank you so much for joining. I said,

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<v Speaker 2>I Happy holiday season to you. That is Michelle bacherc.

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<v Speaker 2>She is the CEO of A Fine Mine and the

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<v Speaker 2>founder there. Of course,