Yuna & Co: Predictive Analytics Becomes a Promising Business Model from Utilizing AI

Yuna & Co is an app fashion matchmaking based on user preferences and also the first in Indonesia. This application relies on artificial intelligence technology or artificial intelligence (AI) to obtain data on users' clothing style preferences.

Entering its second year, Yuna & Co has served the need styling as many as 3000 female users. For the company, this figure is a good achievement with the support of 21 employees. That includes some personal stylist which helps in curating the user's clothes.

In his interview with DailySocial, Founder and CEO of Yuna & Co Winzendy Tedja talks about the rapid development E-commerce in Indonesia that encourages companies to be able to provide services fashion more personal to consumers.

As we know, E-commerce is the powerhouse of the digital industry in Indonesia. Research Google Temasek predict transaction value E-commerce in Indonesia based on Gross Merchandise Value (GMV) will reach $ 53 billion or around Rp 758 billion in 2025.

The man who is familiarly called Zendy said that consumers today are much more mature. Consumers are considered to have a better understanding of what they want than a few years ago when the industry E-commerce fairly new.

However, the number of players E-commerce or marketplace is currently considered to provide too many choices to consumers. According to him, players in this business must be able to provide a more personalized service to each of their customers.

"Now consumers are getting used to and trusting to transact online. In fact, consumers have so many choices every day. Even too many choices sometimes make them confused. So, it's time we can provide a personal element for each consumer," he explained.

Talking about the role of AI in customer satisfaction, Yuna & Co does not yet have certain standards or measurements. However, the company still relies on customer satisfaction as the main Key Performance Indicator (KPI).

"Speaking of the role of AI in customer satisfaction, actually our AI technology is still in the learning stage. But we will not stop evolving," he said.

Collaboration and predictive analytics business

Now, Yuna & Co still relies on Matchbox sales transactions as its main business model. Matchbox is a package containing a set of selected clothes stylist Yuna & Co based on user's needs/tastes/personality and body size.

Actually, the company is interested in implementing a subscription system (subscriptions). Moreover, the level of consumer interest is considered very high for this product. However, the company wants to focus on adding new users, collaboration brand, and market education this year.

To strengthen its business in the future, Zendy sees predictive analytics as a promising business model that can generate new revenue. By relying on the data it has, predictive analysis becomes use case which is very possible from the use of AI technology.

In addition, predictive analysis can also be implemented for broader needs, for example reducing the number of inventory, increase customer satisfaction, reduce return items which is a huge cost for both companies and consumers.

"This predictive analysis is not only used by our company, but can also benefit the ecosystem as a whole. With this data, we hope to benefit and educate large industry players, such as SMEs in the textile industry," Zendy explained.