Future+ Fridays | Issue47

1. AI takes center stage at NRF 2025 in reinventing physical retail

What's happening: The National Retail Federation annual conference wrapped up in New York this week, spotlighting AI’s growing role in transforming physical retail.

Highlights:

• The event showcased how brands like H&M and Tapestry are using AI technologies such as computer vision, RFID, and ambient intelligence to gain deeper insights into customer behaviour and improve store operations.

• Computer vision emerged as the standout technology, allowing systems to interpret visual data similarly to humans, providing powerful tools for tracking customer movement and product interactions.

• H&M is exploring ambient intelligence, combining sensors and connected systems to analyse in-store data and drive actionable insights. The brand also highlighted the importance of partnerships in staying at the forefront of retail innovation.

• Tapestry is using computer vision and machine learning to monitor customer flow, track product engagement, and improve employee interactions, enhancing store design and customer experiences.

• Generative AI is helping brands like Tapestry gather employee feedback more efficiently, revealing insights such as the importance of in-store music and boosting employee engagement by 10 to 15 percent.

• Startups like Augmodo and Arteli showcased innovative solutions, including wearable smart badges for real-time inventory tracking and platforms that analyse local data like income and weather to customise merchandising strategies.

• Not everyone embraced AI’s rapid adoption. American Eagle’s Chief Marketing Officer Craig Brommers raised concerns about how excessive reliance on AI could undermine authenticity and inclusivity, which are core to its brand. He emphasised the risks of AI amplifying human biases, highlighting Aerie’s decade-long policy against retouching photos as a reflection of its commitment to being “real.”

Why it matters: NRF 2025 was proof of how AI is transforming physical retail by enabling the kind of data-driven insights that have long been exclusive to e-commerce. From smarter inventory management to better customer personalisation, the potential is clear. However, brands must carefully balance innovation with values like trust, authenticity, and inclusivity to stay aligned with customer expectations in this new era of retail.

2. Is Red Note the next TikTok?

What's happening: As the Supreme Court deliberates a potential TikTok ban set to take effect this weekend, creators are turning to alternative platforms. One app gaining significant traction is Xiaohongshu, also known as Red Note. Established in 2013, this social media and e-commerce platform has quickly risen to the top of the App Store's download rankings.

TLDR:

• The TikTok ban has sparked a massive migration to Xiaohongshu, nicknamed “Red Note” by US users, which recently became the most downloaded free app on the US App Store.

• The Chinese social media app, blending TikTok, Pinterest, and Instagram elements, has surged in popularity in the App Store.

• The hashtag “#TikTokRefugee” has garnered nearly 250 million views and over 5.5 million comments on TikTok, reflecting the widespread shift to Red.

• Red’s interface, primarily in Chinese, has fostered unexpected collaboration between American and Chinese users, who are helping each other navigate the app and sharing humorous cultural exchanges. Duolingo even joined in, joking about the sudden interest in learning Mandarin.

• Many US creators are joining early to leverage the app’s discovery-focused algorithm and e-commerce opportunities, despite hurdles like its primarily Chinese interface.

• Other TikTok alternatives include Lemon8 (the second most downloaded also owned by Bytedance who owns TikTok and is likely to face similar bans) and Neptune, a female-founded, US-based app in beta promising creator-friendly tools.

• Creators and advertisers rely heavily on TikTok for income, making the transition urgent, with some viewing Red as a potential saviour despite its challenges.

• Red Note boasts 300 million monthly users and a strong reputation in China as a leader in luxury and social commerce, attracting brands like Gucci, Louis Vuitton, and Dior.

Why it matters: TikTok’s potential ban highlights the volatility of the digital creator economy and the fragility of platforms reliant on geopolitics. While Red Note offers a possible new home, its Chinese ties may, just like TikTok, prompt similar regulatory scrutiny, making it a short-term fix for creators and brands. The platform’s success as a TikTok successor will depend on its ability to adapt to international audiences, overcome political barriers, and attract creators to rebuild their communities. In the meantime, the scramble for a stable alternative underscores the growing demand for decentralised, creator-friendly platforms in a highly connected world.

3. Tapestry partners with Adobe to revolutionise design with generative AI and digital twins

What's happening: Tapestry, the parent company of Coach, Kate Spade, and Stuart Weitzman and Adobe have recently shared information on their recent collaboration which started at the end of 2024. Tapestry is using Adobe Firefly's generative AI to create digital twins — virtual replicas of physical products — to streamline design, marketing, and consumer research.

TLDR:

• Digital twins are virtual replicas of physical products created by converting text and photos into 3D images using generative AI.

• Tapestry trained Adobe Firefly with Coach handbags, launching a customized model to understand “Coach codes,” including design elements like hang tags, material nuances, and hardware details. This ensures the digital twins align with the company’s identity.

• Adobe Firefly Customised Models allow Tapestry brands to create campaign-specific content aligned with their style by training the models with proprietary IP while ensuring exclusivity and IP protection.

• Tapestry leverages digital twins for product development, identifying design flaws, running focus groups, and reducing the need for physical prototypes.

• The technology enables Tapestry to experiment with concepts, gather consumer feedback, and produce content for e-commerce, social media, and in-store merchandising.

• Tapestry has used digital twins across all its brands and product categories, with Adobe Firefly expected to significantly influence designs as early as spring 2026.

• According to Markets and Markets, the global digital twin market is expected to reach $73.5 billion by 2027, reflecting the growing adoption of the technology across industries.

Why it matters: The collaboration highlights how generative AI is reshaping traditional industries, allowing brands to move faster while reducing waste. By using digital twins, Tapestry is showing how innovation can amplify creativity and efficiency while aligning with sustainability goals. With its potential influence across e-commerce, social media, and product design, this marks a shift in the way brands bring ideas from concept to consumer.

4. Walmart becomes first brand to sell real-world items on Zepeto

What's happening: Walmart has partnered with global social networking and avatar simulation app Zepeto to launch the platform’s first e-commerce feature for physical goods, enabling users to seamlessly purchase real-world items from the virtual environment.

TLDR:

• Walmart is the first brand to offer physical goods with e-commerce through the Zepeto app which has 20 million monthly active users.

• Users can buy items from Walmart’s No Boundaries collection directly in the app, without leaving the platform.

• Purchases of physical items come with a free virtual twin, allowing avatars to mirror real-world outfits.

• Select in-store purchases at Walmart also include free digital versions for use on Zepeto.

• Walmart was the first to debut e-commerce on Roblox in April 2024 and launched its own metaverse, Walmart Realm, shortly after.

• Zepeto, whose audience is primarily Gen Z and emphasises on digital self-expression, aligns seamlessly with Walmart's commitment to innovation.

• In January 2024, Walmart enabled developers using the Unity real-time 3D development environment to integrate its commerce APIs, allowing the sale of physical items within real-time 3D experiences across over 20 metaverse platforms.

Why it matters: The partnership marks a new milestone in the convergence of virtual and physical shopping. By becoming the first retailer to integrate real-world e-commerce into Zepeto, Walmart is solidifying its role as a leader in the metaverse, much like it did with its previous efforts on Roblox. Leveraging data-driven insights, Walmart is not only responding to digital trends but actively shaping the future of hybrid retail, ensuring it captures the attention of younger, tech-savvy consumers.

5. Louvre Couture: Paris’ Louvre museum unveils first fashion and art exhibition and gala

What's happening: The Louvre Museum is set to debut its inaugural fashion and art exhibition, Louvre Couture: Art and Fashion - Statement Pieces, running from January 24 to July 21. The exhibition will feature 65 designs alongside a selection of accessories, as well as a fundraising gala event in March. Louvre Couture offers a fresh perspective on decorative arts, exploring them through the lens of contemporary fashion design.

TLDR:

• This is the Louvre's first fashion-focused exhibition, showcasing pieces that celebrate the intersection of craftsmanship and art. The display features works from 45 designers and Maisons, including Iris van Herpen, Alexander McQueen, Jacquemus, and Vivienne Westwood. Additionally, archival creations from Loewe, Balenciaga, and Mugler will be highlighted.

• The exhibition explores the link between fashion and art through seven historical periods, from Byzantium to the Middle Ages as it will also highlight the Louvre’s wide-range of decorative arts holdings from suits of armour, ceramics, tapestries and more.

• Curated by Olivier Gabet, the exhibition emphasises the parallels between decorative arts and modern fashion.

• A fundraising gala dinner with 30 tables put up for auction, called the Grand Dîner du Louvre, will be held on March 4 in the museum’s Cour Marly with all profits going to the museum’s activities.

• The gala aligns with Paris Fashion Week and includes an exclusive afterparty beneath the Louvre’s iconic pyramid, with designers and representatives from the fashion houses featured in the exhibition expected to attend.

• The gala aims to become an annual event, similar to New York’s Met Gala, generating ongoing support for the museum’s activities.

Why it matters: The Louvre's first step into fashion exhibitions signifies a bold blend of art, history, and contemporary design, underscoring Paris' role as a global hub for creativity. This event elevates the relationship between haute couture and museum-level craftsmanship, offering a rich cultural dialogue. Meanwhile, the Grand Dîner du Louvre has the potential to establish itself as a major cultural and philanthropic event, amplifying the museum's influence and supporting its mission to preserve and celebrate the arts.