AS Watson to inject $70m in Canadian AI startup
In this article (5)
Hong Kong-based retailer A.S. Watson Group said on Thursday it will spend $70 million over the next three years in big data technologies, including investment in a Canadian artificial intelligence venture company.
A.S. Watson will consolidate its customer data holdings into a big data analysis system for retailers developed by Rubikloud to optimize sales promotion activities and business operations.
Rubikloud has an app designed to analyze customer characteristics and their purchase history using AI. The information will then be used for individual marketing and prediction of future sales.
When A.S. Watson introduced the app at European stores on a trial basis starting in 2015, sales from personalized promotion activities increased by more than 8% over 10 months, hence the latest tie-up decision.
“We are investing in big data amid global economic uncertainties because we believe that technology is a critical enabler for successful retailing in today’s world,” said Malina Ngai, chief operating officer of A.S. Watson Group, in a statement. Ngai added that Rubikloud’s technology will enable the company to “focus our resources, from back-end support to the shop floor, on building a better customer experience.”
Kerry Liu, CEO of Rubikloud, said the company aims to enhance A.S. Watson’s capabilities to personalize customer offers through advanced targeting by “applying machine learning and flexible big data architectures in practical applications.”
A.S. Watson is a subsidiary of conglomerate CK Hutchison Holdings, led by Li Ka-shing, a Hong Kong-based billionaire.
A.S. Watson has more than 13,000 retail stores, including the company’s drugstore chain, in 25 countries and regions such as Asia and Europe. Li’s venture fund Horizons Ventures has also invested in Rubikloud.
Questions & Answers
Q.What is the primary purpose of Rubikloud's technology for AS Watson?
What is the primary purpose of Rubikloud's technology for AS Watson?
Rubikloud's app is designed to analyse customer characteristics and purchase history using AI. This information will be used for individual marketing and to predict future sales, ultimately optimising sales promotion activities.
Q.What positive results did AS Watson see during the trial of Rubikloud's app?
What positive results did AS Watson see during the trial of Rubikloud's app?
When AS Watson introduced the app on a trial basis in European stores starting in 2015, sales from personalised promotion activities increased by more than 8% over 10 months. This led to the decision for the latest tie-up.
Q.What is the total investment AS Watson is making in big data technologies, and over what timeframe?
What is the total investment AS Watson is making in big data technologies, and over what timeframe?
AS Watson Group will spend $70 million over the next three years. This investment is directed towards big data technologies, including their involvement with the Canadian artificial intelligence venture company, Rubikloud.
Q.How many retail stores does AS Watson Group operate globally, and in which regions?
How many retail stores does AS Watson Group operate globally, and in which regions?
AS Watson has more than 13,000 retail stores across 25 countries and regions. These include locations in Asia and Europe, with the company operating a drugstore chain among its various retail formats.
Reader pulse
A.S. Watson's AI investment:
20,199 votes so far