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The Next Storefront Is AI with Tarek Müller

The Retail Tea Break · 2026-05-12 · 35 min

0:00--:--

Key moments - from our scoring

Substance score

65 / 100

Five dimensions, 20 points each

Insight Density14 / 20
Originality12 / 20
Guest Caliber16 / 20
Specificity & Evidence13 / 20
Conversational Craft10 / 20

Tarek Müller brings two decades of e-commerce expertise to this conversation about the seismic shift LLMs are creating in retail. SCAYLE, the enterprise commerce platform he co-founded, now powers 300+ stores globally for brands like Harrods, Deichmann, and Levi's (their first announced US customer), handling complex omnichannel operations that traditional platforms like SAP and Salesforce struggle with. But the real focus here is LLMs as an emerging traffic and conversion channel. Müller explains that while LLM traffic currently represents 0.5-5% of referrals for leading retailers, it's growing 10x year-over-year and increasingly converting to sales. Unlike past technological waves (mobile, social commerce), this one requires a fundamentally different visibility strategy: instead of keywords and backlinks, success depends on rich contextual product content and community reviews that LLMs can re-engineer. Beyond visibility, Müller outlines how retailers should use AI to differentiate their own storefronts (virtual try-on, personalization, community features) and optimize backend operations (customer service automation, AI-generated imagery, dynamic pricing). He positions this not as a threat but as a redistribution opportunity - winners will be those who adopt faster than competitors. The discussion includes mentions of TAYLA, Müller's new tool for fashion visualization.

Key takeaways

  • →LLM traffic is growing 10x year-over-year and converting to sales; brands seeing 5% LLM traffic today had just 0.5% a year ago, making this a critical visibility channel to master.
  • →Success in LLM search requires context-rich product content and community reviews rather than traditional SEO keywords, because LLMs re-engineer the open web based on user context.
  • →Retailers must differentiate their own storefronts with AI-enhanced features (virtual try-on, personalization, community, live shopping) to give customers reasons to checkout on-site rather than directly in LLM interfaces.
  • →AI's margin-improving applications in e-commerce - from first-line customer service automation to AI-generated product imagery and dynamic pricing - are now table stakes for profitability.
  • →Technological waves reshuffle competitive advantage; brands that adopt LLM commerce strategies faster than competitors can capture disproportionate market share during the transition.

Guests

Tarek Müller

Topics in this episode

GeminiClaudeChatGPTLarge Language Models (LLMs)Omnichannel retailSCAYLEAbout YouE-commerce visibilityLevi'sHarrods

Questions this episode answers

How much of retail traffic is coming from LLMs right now?

Most companies are seeing 0.5-5% of overall traffic from LLMs, with ChatGPT as the dominant source globally, followed by Gemini and Claude. Traffic from LLMs grew 10x on average over the past 12 months.

Will LLMs replace my brand's online store?

No - LLMs are asset-light and can only channel demand. Brands that produce products, build stories, innovate, and manage logistics remain necessary; LLMs simply add a new visibility and transaction layer on top of existing commerce channels.

What's the difference between getting visible in LLMs versus Google?

Google relies on keywords and backlinks; LLMs re-engineer the open web for context. To appear in LLM results, you need rich contextual product content and customer reviews that answer who the buyer is, why they use the product, and how they use it - not just product descriptions.

What's the best way to use AI to improve my online store right now?

Deploy AI across three layers: visibility (rich content and reviews for LLM discovery), differentiation (virtual try-on, personalization, community features to drive on-site checkouts), and efficiency (customer service automation, AI-generated imagery, dynamic pricing, personalized campaigns).

Is About You selling directly on LLMs yet?

The transcript doesn't specify About You's direct LLM commerce status, but Müller notes that checkout capability on LLMs is currently live only in the US for select users and is still in beta globally.

What our scoring noted

Our reviewer’s read on each dimension, with quotes from the episode.

Insight Density

14 / 20

The episode delivers solid, actionable insights on three concrete layers of AI strategy in e-commerce (visibility, differentiation, backend efficiency) and specific tactical advice on LLM optimization. However, much of the content is framed around Tarek's own businesses and products rather than broadly novel principles, and significant portions consist of business background exposition and softball promotion that dilutes substance density.

If you wanna appear in as many prompts as possible, you have to provide the open web with as much context as you can. Which means let your community talk as much about your product as possible. Let them write reviews. Ask them for context.
You have to present something in your own online shop that gives customers an incentive to actually go to your online shop and not check out in the LLMs

Originality

12 / 20

Tarek's three-layer AI framework (visibility, shop differentiation, backend optimization) is logically structured but represents fairly standard thinking in e-commerce AI adoption. His framing of LLMs as reengineering text for context is useful but not deeply original. The main original element is the concrete TAYLA product and his specific experience shutting down photo studios, but much of the broader philosophy echoes common SaaS positioning.

If the end consumer is prompting something in LLM, the LLM is basically re-engineering what you're looking for in the open web
Cards are reshuffled when there's a new wave that influences how consumers buy

Guest Caliber

16 / 20

Tarek is a highly credible operator: co-founder of About You (€2B revenue, 3B GMV), founder/MD of SCAYLE (€100M ARR), 21 years in e-commerce, and actively scaling internationally. He brings real execution experience across building, scaling, and pivoting businesses. His perspective is grounded in operating at enterprise scale, not consulting or commentary. This is genuinely high-caliber operator expertise.

Started building my own website at 13, then monetized with advertisement. At 16, I figured most companies advertising on my website are online shops. So I started my first online shop at the age of 16.
We have spent 7 million euro on product pictures cause we have, we are adding roughly a hundred thousand SKUs per year to our product catalog

Specificity & Evidence

13 / 20

The episode includes concrete numbers on SCAYLE (€100M ARR, 300+ customers, fastest-growing vendor, 90% replacement rate for SAP/Salesforce, Levi's deal) and About You (€3B GMV, €2B revenue, 100k SKUs/year). On LLMs, Tarek cites 10x growth in traffic over 12 months and 0.5-5% of traffic ranges, but lacks detailed case studies or named examples of customer results. TAYLA specifics are strong (90% cost reduction, higher conversion) but mostly about his own product.

Companies that are today at 5%, they were 0.5% a year ago
We have spent 7 million euro on product pictures cause we have, we are adding roughly a hundred thousand SKUs per year to our product catalog. And each SKU was shot on a model. A model could do 50 SKUs per day, and on average we were paying 70 to 80 euro per SKU.

Conversational Craft

10 / 20

The host asks basic, friendly questions but rarely pushes back or probes deeper. Questions are largely invitations for Tarek to elaborate on his own narrative (Levi's partnership, TAYLA product launch, future plans) rather than challenging claims or exploring tensions. When Tarek makes bold assertions (LLM checkout adoption, margin implications), the host affirms rather than investigates. No genuine disagreement or skeptical follow-ups emerge.

I'm so excited for you and the brand 'cause I just think this is only the beginning
This episode of the Retail Tea Break podcast is brought to you by SCAYLE

Conversation analysis

Computed from the transcript - who did the talking, and the words that came up most.

Most-used words

online26scayle25world23commerce20customers20software18brands17market17product17retail15shop15llms15traffic15podcast14today14cause14

Episode notes

What happens when AI becomes the storefront? In this episode of The Retail Tea Break , I’m joined by Tarek Müller, Co-Founder and MD of About You and SCAYLE, for a fascinating conversation on the future of commerce. From SCAYLE’s expansion into the US market and its recent Levi Strauss & Co. partnership, to the growing role of AI and Large Language Models in retail discovery, Tarek shares why the industry is entering another major shift in consumer behaviour. We also explore how AI is changing operational efficiency, personalisation and even fashion photography through TAYLA, a platform already transforming digital content production at scale. If you want to understand where retail is heading next, this episode is essential listening.

Full transcript

35 min

Transcribed and scored by The B2B Podcast Index.

Well, welcome to season 10 of the award-winning Retail Tea Break podcast. My name is Melissa Moore, The Retail Advisor. I'm a retail educator, trainer and retail conference MC, and each week as your host, I'll be joined by industry experts, retailers, and brands to dispel the myths, share their knowledge, and give you an insight into the retail industry. There's over a hundred episodes now that you can listen back to on your favourite podcast platform.

Or of course, go and watch us on YouTube. And while you're there, please do hit that follow button so that you get to listen first every week. And remember, caring is sharing in this industry, so share an episode across any of the platforms with your network, and if you're on LinkedIn or Instagram, tag me, Melissa Moore and the Retail Tea Break podcast. Ooh...

and a little secret we've been keeping. You can now find the Retail Tea Break podcast on Substack. You'll get to read my take on each episode with extra learnings and lots more insight. So subscribe to the Retail Tea Break podcast on Substack today.

So in the meantime, grab that cup of tea, sit back and enjoy season 10 of the glorious Retail Tea Break Podcast. This episode of the Retail Tea Break podcast is brought to you by SCAYLE, the enterprise commerce platform, empowering B2C brands and retailers to easily create outstanding customer experiences with a seamless and flexible feature set that can be extended through APIs. Trusted by brands like Levi Strauss®️, Harrods, Manchester United and Deichmann, SCAYLE enables businesses to accelerate innovation and drive real growth.

So for more information, visit SCAYLE.com today. So today I'm joined by an entrepreneur and one of the most influential shapers of digital commerce in Europe. For more than two decades, he's been developing and scaling digital business models in e-commerce.

He's built numerous e-commerce models across a wide range of industries, gaining extensive early experiences across the entire digital value chain. He's advised well-known companies through his own digital agencies on the conception and implementation of innovation, e-commerce, and digital strategies. He's co-founded About You, transforming the company from an online fashion store into an internationally operating e-commerce group with a strong business to business segment centered around the commerce technology SCAYLE.

Tarek Müller, Co Founder & MD of About You and SCAYLE, welcome to The Retail Tea Break podcast! Welcome. What an intro that must have been sent through by our comms team, I guess. yeah?

No, I think it's really accurate. I've been watching as, as more and more people have been talking to you recently, everything you are doing seems to turn to gold at the moment, so I'm really excited to have this conversation. But look to kick us off in the age old tradition of the Retail Tea Break podcast, in the time that it takes to boil a kettle, which I am told is about two minutes, tell us a little bit more about you and your background in this industry. Yeah, started building my own website at 13, then monetized with advertisement.

At 16, I figured most companies advertising on my website are online shops. So I started my first online shop at the age of 16. That's 21 years ago now. Then I've built a lot of online shops in niche categories, like really packed the parcels, did all the things, while being in school at the beginning.

That has worked extremely well. But then Amazon came and took over all the niche, sold that company to a company called Auto Group here. Founded a consultancy firm, was building online shops in parallel always and then founded About You, ,which is by far our largest online show I've ever started selling fashion in 28 continental European countries. We had 3 billion in GMV, 2 billion in net revenue profitable.

And then six years ago, out of About You, we spun off our software that we have developed for our own and are now powering more than 300 online shops worldwide, so think Shopify but for the big guys, names like Harrods, Deichmann, Levis, many more that are running on our software in fashion, but also outside of fashion. Just like that. You make that sound so easy. And also the way you mention it there, it makes it sound like it was just a small little thing you've done over the years.

It is incredible, your background and what you've done, and I suppose the people you've touched in that respect, because you've built so many businesses and they've been so successful, you know, as you said About You now is unbelievably successful across so many countries and SCAYLE, I suppose that's probably where we need to start. Congratulations, by the way, the partnership with Levi's, I know that you announced it there a couple of weeks ago. Take us through what you're doing together.

Yeah, I mean, US is a big thing for us because it's our first announced customer in the US so we have more than one customer. So maybe one step back. So SCAYLE, the foundation of SCAYLE is the software that we've developed for About You. And we have developed our own software because there, there was no software out there that was like fulfilling our needs.

So 12 years ago when we started About You, we developed our own software. And already back then we had the idea that if that business model proves to work, we then productize the software behind it because we felt there's a huge demand for modern software that is composable and follows the architectural, I would say, mindset that nowadays you have like the programming languages, the architectural rules in a way, but actually as a full suite. So it can cover all the tech or most of the technological things that you need to run an online shop.

So we, we programmed our own software and then 2018, we started to license it out. First only on inbound and basically friends of the company in a way. And then since 2021, we are really in the market, going actively into RFPs, et cetera. Being listed at Gartner, for example, in the Magic Quadrant.

I think ever since we are also the by far, fastest growing software vendor in e-commerce. And yeah, it has been really a success story. I have to say we have won a lot of customers. We have extremely high win rate in RFPs, but we are also very, I would say it's a boutique software player because we only go for B2C companies.

So companies selling something to an end consumer, the typical, the classical e-commerce in a way. So you order something, you get a parcel delivered to yourself. So quick commerce, for example, we wouldn't do a B2B, we wouldn't do. And only for customers that are large.

So above a hundred million. Typically our customers are somewhere between a hundred million in online revenue up to a couple of billions. So it's way above the Shopify space. And there we are usually competing with SAP and Salesforce.

And then we are 90% of the cases. We are also replacing these two systems. And we really had a run, yeah, we've won a lot of great customers. Scaled to nearly a hundred million in software AR, which in the software world is a lot.

So yeah, I mean the a hundred million AR's is not a, not a milestone a lot of companies take, and I think it's especially interesting because we've taken it without the US market. Keeping in mind the US market is by far largest market, software market in the world. So we knew that but Europe was so successful that for the first four years we were only in Europe. And then since last year, we also have a presence in the US with an office in New York, and yeah, Levi's is the first deal we could have announced, we were announcing, which is obviously, obviously a big thing.

Yeah, I mean, Levi's is probably one of the most well-known brands in the world. You can go literally to every country in the world, you will find someone with a Levi's jeans and they all love Levi's. Levi's is a extremely well known brand globally. They sell in every market in the world.

That brings technological complexity. It's an absolute love brand. It's a brand at SCAYLE. They have several sub-brands.

They do have their own DTC, but they also sell on marketplaces. It's not only online, they also have stores, so it's also an omnichannel case. So it's all the things that we love because SCAYLE is the platform of the choice of those that are large and complex, and the more complex you are, the more likely it is that you come to us because our software is really made basically or is, is made in a way that we can handle complexity, but in a way that then at the end of the day, for the business user and the company is made simple.

So things like combining offline and online, multiple countries, multiple continents, multiple warehouses, complex product catalogs, sub-brands, all of these typically complexity layers where other software vendors then struggle are yeah, built in with SCAYLE. So that's why from three perspectives we are very proud of Levi's. For me, US always, it, it kind of the most important dream market. So for announcing our first US customers a big thing.

And then secondly, having such a large one and such a globally renowned love brand. And then thirdly, really being able to show our ability because they had a lot of complexity layers. I love this. I'm so excited, the more you talk about this, I'm so excited for you.

'cause as you say, you've absolutely smashed Europe, so by kind of digging in now in the US where you didn't necessarily need it, but they're coming to you 'cause you are the best is incredible. And I think it's so exciting because at the end of the day, as you described initially here, this is your background. You've had About You for a long time, you know SCAYLE works. You now know that the biggest and the best in the world are coming to you because they want exactly that.

So I'm fascinated by this, but I am, I'm genuinely, I'm so excited for you and the brand 'cause I just think this is only the beginning. I kind of feel that there's lots more to take and I'm sure you will be, but actually on that, 'cause you've mentioned kind of multiple channels. There are multiple ways of the retailer or the brand meeting the consumer. And we know now more than ever that that's exactly what the consumer's doing.

They are everywhere. As you say, they're in store, they're online, they're buying from their phone, on their sofa, they're buying on the train. But then it brings me to this new channel, or it's coming anyway. LLMs and I suppose the very fact that visibility is coming on LLMs to be able to buy, to be able to kind of search is already there.

How should brands be tackling the kind of visibility aspect as we are coming into it is almost like a new channel for the customer to search. Yeah, absolutely. I mean, on top of everything you said, kind of the customer wanting an omnichannel experience and so on so forth. What the brands today already basically are used to is that their brands are usually not only sold on their own .

com, but they usually are sold on Amazon. On, in Europe, Zalando and About You for example, in, in UK for example, ASOS or whatever, Harrods also being our customer, for example. Then I think a couple of years ago, TikTok shop arrived, being also very relevant in the US in specific categories. In some categories it's not so relevant, but in most categories it is a relevant channel too.

Yeah, and I would say obviously in the last two years, another channel has been added, which are the LLMs. So far it's more a traffic channel than a conversion channel, because only in the US customers can actually check out and only a few customers can. It's still in beta phase. But what we definitely see globally is that the traffic coming from LLMs is increasing and there it's predominantly ChatGPT as the number one traffic source.

Number two, globally we see Gemini and number three Claude. And we do see companies that already have 5% of the overall traffic coming from LLMs as extremely significant. Obviously it's less than Google, Google search still being a by far larger traffic source. But m ost companies are somewhere around 0.

5, up to 5%. The interesting thing it's, it's growing heavily. Like we've seen traffic in the LLMs in the last 12 months on average 10x-ing. Yeah, so it's 10 times more.

So companies that are today at 5%, they were 0.5% a year ago. So it's, it really came out of nowhere basically and became a very relevant traffic source. And the second thing that we see as interesting is it's not only the 10x-ing in traffic, it's, the traffic a year ago was not converting, and today it converts.

So it really gets closer to a transactionally relevant traffic source. Therefore I do think that as when you know, Facebook rose Instagram rose, TikTok rose, brands had to think about how can I gain visibility in that new world? I do think brands, also retailers, basically everyone selling something online have to think about how to get visibility in those LLM's. And there are, yeah, a few kind of ways to achieve that, but it definitely plays to other rules than social media or Google search.

And then I think the second thing to watch out is that soon ChatGPT and Gemini will not send the traffic anymore to the website, but will have the ability for the user to check out directly. So they can then, rather than, I mean, typical cases, I'm looking for an e-bike, for example. And then ChatGPT would recommend me e-bikes based on the prompts that I have given and today I click on the link and then I end up on an online shop and then I can check out there. We all know the experience.

So soon today in the US, in some parts, soon everywhere, I as a user can say I wanna buy that e-bike and then I can check out directly in Gemini or ChatGPT and then Gemini and ChatGPT will not send the traffic, but we'll send a conversion to the online shop. And that obviously takes it to the next level and has, yeah, pros and cons. But it will definitely change, change how e-commerce works in a way. Should we be worried then, or is it just like the new iteration of e-commerce we'd say?

you know, a lot of us are very nervous going back online 20 years ago, but we're all used to it now. So should we be worried about utilize or our customers utilizing LLM to shop, or do we actually just need to get on with it? I mean, you know, I think with every technological waves, cards are reshuffled. I've already mentioned I'm in e-commerce since 21 years, so I've started where e-commerce was national, desktop only, organic search only as traffic channel.

Payment methods, maybe one or two at best. And that was the world and there were no omni players. Yeah. And then we saw a huge shift when Google introduced its ad system, that reshuffled.

We have seen a huge shift through mobile. Today, vast majority of customers are buying mobile. Not everyone that was successful in the desktop world actually made it through the mobile world. Then we saw the, the rise of social and with the rise of social media, Facebook, Instagram, TikTok, we've seen completely new brands and by this also other brands dying.

And I think it's just natural that cards are reshuffled when there's a new wave that influences how consumers buy. So the question on whether you should be scared or whether you should be happy, I think really depends on how you tackle that because as always, there will be winners and there will be losers. That's interesting. So I'm really kind of hearing from you, you've gotta do it or you've gotta at least to attempt to do it.

'cause if you're not riding that wave, when the algorithm changes with the LLMs, and I'm presume, I don't even know if that's the right word to use, algorithm, but you need to be there by the sounds of it. 'Cause if you're not, like a lot of brands over the last 20 years, you die away. Yeah, absolutely. I mean, you know, I think you cannot stop what consumers want.

Consumers want what consumers want. So you have to make sure that you find a place in that world. And the good thing is LLMs will not start to produce products. Yeah.

They are asset light. I mean they rely on computer and CapEx in that way, but they're asset light in a way of, they will not start to produce an e-bike, yeah. So they just channel demand and therefore brands that produce a product and build a story, innovate, and also retailers that you know, aggregate, manage the logistics, things like that, they are necessary. Yeah, because none of these jobs will be done by LLMs.

The LLMs are only, "only" in quotation marks, channeling traffic. Now, it might be the case that after a certain time they squeeze out even more margin than Google and META, but I assume that won't be the case because Google and Meta already observing that much of a margin. In the beginning it will be better because the commissions will be lower, and then in the long run, I guess it will be similar, so it will not be margin accretive, but I, I don't think it will be margin destroying.

And also in that new world, somebody has to organize the logistics by the products, innovate, produce things, tell a story, et cetera. Now, therefore, I would always say being an entrepreneur, I would always say I'm not scared of that world. I see it as an opportunity to expand my market share in a faster way than I can do it in a very steady world, because in a very steady world, it's very difficult to gain over proportionate market share. But if things are reshuffled, then this is the window of opportunity where you can make a difference by adopting the new things faster than your competition.

Now, that's why I think smart entrepreneurs and smart organizations should see this as a big opportunity to really claim more market share in a new world, in quotation marks than they would in the old world. Old world is a bit too black and white 'cause the old world obviously doesn't die then, Google, Instagram, et cetera will still exist. But it's just an opportunity that comes on top. But actually that's really interesting 'cause when it comes to kinda opportunities in AI, and I think it's definitely the way a lot of retailers are utilizing AI or LLMs right now, improving efficiency, reducing cost.

How are you seeing this done, I suppose yourselves with About You, but also with some of the biggest and the best retailers in the world? Yeah. We are seeing basically the whole kind of AI wave and e-commerce happening on three layers. So the first layer is the whole kind of visibility layer.

So you have to make sure that you are visible in your product category if someone searches for you. I mean, there are a lot of like tricks, but I would say I really have to drill it down at the end of the day. If you, if the end consumer is prompting something in LLM, the LLM is basically re-engineering what you're looking for in the open web, yeah. And LLM is not an intelligence yet.

It is just a re-engineering of text and voice to text they found the open web. So if I'm looking for an e-bike and I tell the LLM, I'm 37, I live in an urban area, I want to drive that e-bike to my work. It's whatever, five kilometers. It's mostly whatever, forest.

And I'm a lazy guy. I want the electronic stuff to really work. I don't want to, put too much effort, blah, blah, blah. So what the LLM does is basically it takes everything I said, and it basically goes to the open web and looks for context, and it looks for context, and then it looks okay.

I re-engineered the context I was given, and then I'm looking for product recommendations in the open web. Now what does that mean? If you wanna appear in as many prompts as possible, you have to provide the open web with as much context as you can. Which means let your community talk as much about your product as possible.

Let them write reviews. When they write a review, don't let them only write a review where they say, "oh, great e-bike". Ask them for context. Ask them who you are, because this is the re-engineering work you wanna do.

You wanna ask the customer, who are you? How old, gender, where do you live? Why do you use it? How do you use it?

And then ideally they say, this is my context in a way, and then I like the product. Now this is the piece of information that is then being re-engineered from the LLM to make sure you appear in the right prompt, yeah. So again, first layer is make sure you appear when potential customers are prompting / searching for something where you want to appear, yeah. And this you do by content, quantitative number of content.

When the old world, in Google it was more like back links and keywords. It's now contact and context. Second thing is we see that you need to differentiate your own online shop even more. Because if your online shop is only a product catalog with a checkout, now this will be commoditized out by the LMS really fast, yeah.

So you have to present something in your own online shop that gives customers an incentive to actually go to your online shop and not check out in the LLMs, yeah. And that can be everything. That can be more information on your product, being really the expert in your category. It can be a better personalization.

It can be features in fashion, for example, like a virtual try-on that's not available in LLMs. It can be huge selection. It can be a community where you don't only buy products, you can also talk about that stuff. It can be various things, yeah.

There are a lot of ways to differentiate. It can be live shopping, it can be content, it can be inspirational stuff. There's a lot, but you have to make sure you differentiate yourself in your own online shop. For this, you can use AI because AI can really help you for a lot of things to make a difference in your own online shop by developing it faster but also on a feature basis, virtual try-on you can do with AI personalization, can do with AI content, editorial stuff, you can do with the help of AI much, much more efficient.

You can also implement your own LLM on your own website, so AI can really help to make your online shop a better online shop. And then third layer is really the, I would say, more backend stuff. So how can you use AI to increase your margin and efficiency of your company? The most obvious thing is your first level customer service request should be answered by an AI in most cases, because customers usually ask stuff that is so easy to solve, you don't need a human answering on that, yeah.

That by the way decreases cost, but increases NPS because customers get an answer much faster. In fashion, for example, we developed a tool where most of the editorial pictures and even the product detail pictures are generated with AI on AI models, and this performs better. But also pricing algorithms. I mean, 20 years ago, people, humans were setting prices.

Now the AI can do this much more efficient, much more personalized. Same for promotions, same for CRM campaigns. And so on and so forth. So you gain visibility, make more revenue.

You, with AI, you use AI to create a better online shop. And thirdly, you will be more profitable. Phenomenal. Like you've literally just given us a crash course in how to utilize AI for our business.

And I absolutely love that and I'm sure people listening and watching are gonna be scribbling away in the background. But that's brilliant. But again, it's because as you said, you've been in this business so long, you get it and you are utilizing it, which is why so many businesses are coming to you. And actually on that, I'm quite excited now to kind of talk about, you've just launched TAYLA, so trytayla.

ai It looks phenomenal. It looks absolutely brilliant. Tell us a little bit about it. Yeah, that was actually a, a, that's a cool thing.

So I think six months ago I saw two of my colleagues, shout out to Julie and Chris, came to me and said, Hey Tarek like on the weekends we, with our developer, we've developed a tool where you can basically upload a bust image. A bust image is basically a fashion product. There's just a white, no, not on a model. It's basically just a product on a white background basically.

And they were able to create out of that bust image, like a perfectly looking model picture. And I couldn't believe it. I said, you're kidding me. That is not AI.

That looks way too real. And then we went even further and created all the social pics out of that. So do the raw selfie, whatever, the beach selfie, the paparazzi pic, the elevator selfie, the cafe photo. And they are so good.

Like you've definitely gotta go try TAYLA. So it's try, T-R-Y-T-A -Y-L-A.ai. I'll obviously put it in the show notes.

Yeah. Because they are so impressive. Like I was genuinely shocked and I almost thought I didn't understand the product or the software. Yeah.

Because they looked so real. Yeah. It's, it's unreal. Yeah.

I mean, even if you're not in the fashion industry, check out the website. Cool that we put it in the show notes. And there's a video. Now, I mean, the thing is that you can now basically create everything, editorial pictures, model pictures, whole, you can basically upload a catalog of fashion products, yeah, and then the AI can mix and match the right products to a cool outfit.

And then you can create models. They're completely virtual and then you can do shootings, yeah. So you can then basically shoot outfits on the model. You can change the style, the posts, the lighting, the background.

You can say, I wanna have a wooden floor, I wanna have a, whatever, concrete floor. I wanna have a white background, a gray background. Everything you can do, could do in the real world, yeah, you can do now. But the thing is, it just costs, yeah, 90 plus percent less.

And it's obviously much faster. And I mean, that's a, that's a huge game changer. I mean, to be very honest, like we have spent, last year we have spent 7 million euro on product pictures cause we have, we are adding roughly a hundred thousand SKUs per year to our product catalog. And each SKU was shot on a model.

A model could do 50 SKUs per day, and on average we were paying 70 to 80 euro per SKU. That brings it to 7 million. Now, I mean, we have now decided to shut down our photo studio. I mean, we were running a big photo studio, one of the biggest in, in, in Europe actually, yeah.

With nine parallel sets, yeah, it's huge. And we've decided to shut it down because we have seen that, so we have AB tested it obviously, and we have seen the AI is faster, more than 90% cheaper and creates better results. We have seen an increase, massive increase in conversion rate, actually, and I mean, next step is that we can now, I mean obviously in the old world, one SKU got one product picture, but this was a bit of an average because we know that Western Europe is different than Northern Europe, than Central Europe, than Southern Europe, yeah.

Now, thanks to AI, we can shoot individually for every country, really choose the right model, the right combination of products and so on, so forth. So the possibilities with digitizing the shooting process are endless. And it's crazy because you are saving so much money. In our case, it's more than 6 million euro that we are saving.

That's very significant in pure profit. But, the actual outcome is better than before, we can now shoot more than one picture per SKU, we can shoot unlimited number. So for every country we can choose the right models. We can AB test it.

We can even personalize it. So one customer we know likes blonde models, the other one likes brunette, one likes skinny, the other likes curvy, and so on, so forth. So you can basically, per SKU shoot hundred products, and then the algorithm basically is detecting which of the products is the right for that person, depending on taste. If we don't have taste information, on country, on city, on behavior, like is it more we all know fashion products can be styled casual, can be styled classic, can be styled elegant, yeah.

It's the same product, but you can style it in different ways and that really determines whether a customer buys. So the possibilities are endless. And even for social media and advertisement, and for editorial content you can now shoot. And it is just amazing.

I was blown away six months ago and since then the technology has just gotten better and just gotten cheaper. So it's unbelievable what is possible today. And yeah, as mentioned, we have really switched our whole process to that and we have now opened it, kind of, I mean, I think, I don't know whether I've even publicly spoken about that already, but like you can go on our website, you can register there, you can buy credits. So far we have not really done any active sales for it because we are getting so much inbound on it.

Because obviously our company, we have more than a thousand employees. Everybody's talking to somebody in the industry. So we've gotten a lot of interest and a lot of companies that register on trytayla.ai and basically, yeah, just test it out.

It's a safe service tool. You just, register, you, you get 50 free credits where you can then play a little bit around with a set of products that have been uploaded by us. But once you then basically switch to paid, paid program, you can then upload products, build your own models, blah, blah, blah, yeah, we are seeing a lot of interest on that. And yeah, I think latest in the next one or two years, most companies will actually switch from yeah, real model production to virtual.

I do believe there will always be a bit of real production. Also, we produce every now and then in real, but I would say probably 90% plus will be switched to AI production because the quality's just insane. It is amazing to do. Go and, go and check it out 'cause I was blown away.

And I do think it, it's definitely the future for fashion for sure. So come here, one question then Tarik, that I'm asking every guest on the podcast this season. What are you most excited or most curious about when it comes to the future of retail? I mean, AI for sure.

Yeah. It's a very big field. I mean, for me it's clear people do product discovery in LLMs, yeah. I mean, that's reality today.

I think for me it's unclear whether customers also want to check out actually in LLMs, I think we have to be prepared for that. But so far it has not been proven, so I, I'm curious to see will customers actually transact within Gemini and ChatGPT. ChatGPT had pulled back a little bit. They have announced it really big six months ago, now they pulled back a little back and said, oh, not so many people have actually checked out.

So let's see. As a traffic source, I'm a hundred percent sure it will increase relevance. As a conversion channel, I'm not sure. I am curious to see what is the next wave of social networks.

Yeah. So far, every two or three years we have seen a new groundbreaking social network, YouTube, then Facebook, then Instagram, then TikTok. TikTok is how old? I don't know, five years, six years.

When is the new next social network coming here? 'cause that will be very interesting. What will be the new social? I think as always, it will be something that we totally not expected, so.

And I'm a hundred percent sure there will be in the next five years, we will see the rise of a new social network that will scale on global levels like TikTok did, like Instagram did. What will this be? I think it's very unclear at the moment. But this will also be a reshuffling of cards I believe.

So there's a lot of things I think in e-commerce to, to be curious of, yeah, it's definitely a very exciting time. Where I think after five years of a bit of boredom in the market, not a lot has happened, yeah. COVID obviously a big thing, but like after COVID, not a lot has happened, I think now is really in a very exciting time in e-commerce and it's the time where you can really make a difference, I think. I love what you're curious about as well because no one's brought any of that up this season, so it's fascinating.

Oh, what did the others say? Well, this is why it's fascinating to hear where your almost mind is going because you're so embedded in the industry. So again, I think we're gonna clip this and we might even come back to this in a couple years and see, 'cause I fully agree with some of what you've said. So we'll watch this space.

But look, last question, 'cause we could definitely talk all day and I have no doubt you will be back on here very soon. What's coming up next for you and the team this year? I mean, US expansion for SCAYLE, definitely a big thing yeah. As a little boy, I've always dreamed of doing business in the US.

Wow. It's most exciting market. I'm very fortunate that I had a lot of dreams come true in my career so far. But having a business, having an office, having a team in the US is a huge milestone for us.

And we definitely wanna make sure we win the US market, meaning fashion customers above a hundred million per year or lifestyle customers so also home, living, beauty and adjacent lifestyle categories, they shall migrate to SCAYLE in the next 10, 15 years. Whenever they wanna migrate, we want to win them, yeah. Signs are really well at the moment. We get amazing feedback.

We have amazing inbounds, even today already from existing customers being very happy. We are the software vendor with the highest satisfaction. I hope we can keep that. Because that is our number one acquisition channel is happy customers.

And yeah, I mean that's, I, I would say US market being, being a huge thing for us but also continuously scaling About You, continuously growing the business and also expanding that business. We wanna be the global number one in online fashion with AboutYou.com. We are not yet there.

So there's a long runway for further growth. And then, yeah, I think we have a lot of cool features also both in About You as well and, and SCAYLE, I mean About You is a SCAYLE customer. So one equals the other in a way. Where I'm really excited to, to pull them off this year.

Because I think they will really, there, there are a couple of things where I can, where I think they can really add additional pockets of growth for About You, but also for other SCAYLE customers. Fantastic. Watch this space 'cause we certainly will be. Look, if you've enjoyed today's episode, please do like and share it from any of the podcast platforms with your network.

And of course, if you're on social media, tag me, Melissa Moore and the Retail Tea Break podcast. You can listen back to all previous nine seasons, should I say, on your favorite podcast platform. And of course, while you're there, hit that follow button so that you get to listen first every week. Tarek, where can people find you?

I was talking a lot about US market, but it's because we've started the UK market two years ago. And I'm also very excited about UK market. I'm in London once per month so we are organizing events there every now and then. So check out our SCAYLE.

com website. And yeah, if you like, attend one of our London events or if you are interested to speak, doesn't need to be about SCAYLE, I'm always interested to connect with entrepreneurs in the e-comm industry. I'm, I'm always super happy to, yeah, to basically expand my network and any e-commerce leaders, if you ever are in Germany, we are based in, in Germany, in Berlin and Hamburg, please reach out to us. We would be excited to, yeah, sit down with whoever is interested in SCAYLE e-commerce, new trends, et cetera.

And yeah, you can find me on LinkedIn, yeah, I've deleted my Instagram account a year ago, so they're not anymore. LinkedIn and SCAYLE website. And you know what? I'll pop all...

And physically in London and Berlin and Hamburg, yeah. You'll have people clambering you down. They'll be knocking down the door, but we'll pop all the details in the show notes. It has been an absolute pleasure.

You have shared so many insights. I'm so excited for what you are doing with About You and of course with SCAYLE at the moment, and I have no doubt you'll be back on here in the future to keep us updated. Thank you so much. Thanks for having me.

It was a pleasure. Thank you. This episode of the Retail Tea Break podcast is brought to you by SCAYLE, the enterprise commerce platform, empowering B2C brands and retailers to easily create outstanding customer experiences with a seamless and flexible feature set that can be extended through APIs. Trusted by brands like Levi Strauss®️, Harrods, Manchester United and Deichmann, SCAYLE enables businesses to accelerate innovation and drive real growth.

So for more information, visit SCAYLE.com today.

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