Recently, the trendy toy and fashion brand “TOP FAVOR” announced the completion of its fourth round of financing. This funding will be used to deepen investment in artificial intelligence technology, expand distribution channels, and strengthen the construction of its talent team. “TOP FAVOR,” founded in November 2021, is driven by big data and artificial intelligence, dedicated to integrating trendy toy elements into clothing design, creating a unique brand image.
Since its inception, TOP FAVOR has demonstrated a firm belief in the use of AI technology in the clothing industry, as well as a pursuit for the transformation of the global apparel industry. Currently, TOP FAVOR has implemented deep applications of AI technology in several aspects of clothing production, covering design, marketing, supply chain management, and flexible intelligent manufacturing.
In the field of design, TOP FAVOR uses AI to analyze vast amounts of data, including fabric types, style matching, color trends, fashion trends, design dynamics, and other dimensions. This approach reduces the impact of varying designer abilities, insufficient innovation, and errors in predicting fashion trends, making products more in line with market and consumer needs.
In manufacturing, the brand adopts an AI-driven flexible production model, which allows a shift from “produce-to-stock” to “produce-to-demand.” This means that in the design process, clothes are constructed based on parameters such as fun, material (luxury feel), and marketability, which are further broken down into many smaller dimensions. If a particular garment does not perform well in sales, these dimensions are avoided in subsequent designs, while successful elements from best-selling products are extracted for the development of new products to increase the chance of producing hit items.
In terms of marketing, the application of AI can analyze sales data of similar products across the internet in real-time, proactively provide marketing strategies, and track changes in user and market trends. In supply chain management, the introduction of AI allows for the analysis of product sales data and supply chain demands and price trends, enables intelligent operations in purchasing and materials management, and creates an optimal production combination under a data framework.
In terms of product pricing, TOP FAVOR’s current average order value is around 700 yuan, a significant decrease from the initial price of 1500 yuan.
Wu Sunle revealed that at the founding stage, in order to quickly accumulate popularity, TOP FAVOR relied heavily on offline boutique distribution channels. Now, as the user base has stabilized and matured, the company has adjusted its strategy, closed these offline channels, and instead focuses on operating through an all-channel direct management model, allowing more profits to be passed on to consumers, which is also an important reason for the reduction in product prices.
Since last year’s “Double 11,” TOP FAVOR’s monthly sales have maintained a high growth rate of 150% to 200%. In the fashion industry, adopting a multi-brand strategy is an important practice for various enterprises to expand their market and diversify risk, whether it’s high-end groups or fast fashion brands like H&M, ZARA—all adopt this strategy.
TOP FAVOR is also practicing a multi-brand strategy. Over the past year, it has started to explore the expansion of multiple brands. With the help of a new round of financing, the company also expects to make greater strides in the construction of its sub-brands. Wu Sunle envisions that TOP FAVOR will build its own brand matrix through original creation or acquisitions, and empower these brands with AI technology, aiming to maximize commercial value.
As for the company’s financial health, TOP FAVOR has achieved break-even in the first quarter of 2024, showing a healthy financial status and the sustainable development strength of the brand.
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