Mastering the Tech-Business Intersection: Insights from PacSun's CIO Shirley Gao on Navigating Gen-Z Trends & AI in Retai - podcast episode cover

Mastering the Tech-Business Intersection: Insights from PacSun's CIO Shirley Gao on Navigating Gen-Z Trends & AI in Retai

Jun 13, 202314 minSeason 7Ep. 7
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Episode description

Founded in 1980, PacSun is not your average apparel brand. An embodiment of youthful vigor and boldness, PacSun has curated a culture centered on its customer, offering a unique blend of relevant brands and styles to inspire a generation.

The brand's unprecedented digital prowess was evident when it doubled its digital sales in 2020 and amplified its social media reach, achieving over 2M followers and 33M likes on TikTok. Such remarkable growth is a testament to PacSun's agile and forward-thinking approach, which has enabled it to thrive in the highly competitive $830 billion Gen-Z retail industry.

The maestro behind this digital orchestration is Shirley Gao, the Chief Information Officer at PacSun. Spearheading various digital transformations and business integrations, Gao has been instrumental in evolving PacSun's digital landscape, creating an elevated shopping experience tailored for Gen Z.

At the core of Gao's digital strategy is the concept of Unified Commerce. This includes Buy Online, Pickup in Store (BOPIS), same-day delivery via Uber and Doordash, and even the Amazon marketplace. This ensures customer convenience and satisfaction without compromising on speed or efficiency.

One of the most noteworthy aspects of Gao's strategy is the attention paid to fulfillment optimization. Gao champions the importance of in-store fulfillment alongside traditional warehouse operations. Inventory accuracy is a top priority, aimed at reducing rejection rates and split shipments while maintaining a positive in-store experience.

Next in the digital strategy is improving the return experience. Innovative methods like buying online and returning in-store, along with advanced return refunds, enhance customer convenience and satisfaction.

Breaking boundaries in the payment realm, PacSun under Gao's leadership has adopted alternative payment methods such as cryptocurrency, Cashapp, and Venmo.

Gao's vision extends to customer service with the introduction of AI-powered chat-bots or digital workers. These advanced bots provide fluent and conversational customer service during off-hours, exhibiting brand and customer awareness, and elevating the brand's customer service experience.

A robust Customer Data Platform forms the backbone of PacSun's digital strategy. It acts as a central repository, collating and orchestrating customer data across platforms to inform business decisions and provide better insights into customer behavior.

In a move toward sustainable fashion, PacSun also incorporated the pre-loved clothing program in collaboration with Thred Up.

Social commerce has been a significant area of focus, as well. Direct checkout options from Instagram, TikTok Shop, and Douyin in China are now available. Livestreams on TikTok during significant events like the Super Bowl and on Douyin and Bambuser further extend the brand's reach and engagement.

The tech-stack at PacSun continually evolves. The brand currently leverages AI-powered technology for in-session promotion, automated attribution, and digital fitting.

Over four decades into its journey, PacSun remains a leader in the retail industry. It continues to resonate with Gen Z and adapt to their preferences, needs, and interests. PacSun's success is a testament to the effectiveness of its digital strategy, shaped and guided by Shirley Gao's visionary leadership.

#PacSun #GenZ #DigitalTransformation #Ecommerce #RetailRevolution #Innovation #ShirleyGao #salesforce

Transcript

Hello and welcome to Salesforce connections. I'm Alex when the retail podcast I'm here with Shirley from PacSun CIO incredibly privileged to be with cherlene in a lot of the international listeners may not know of PacSun. But when we get to the area where we unpack, what what has been going on Paxson the whole gen Z Focus. The whole bringing Vibrance to a new segment for a 40 year old company. Is that right out? I do this back son. Yeah.

He sells some 40, something else, it's not a new company but all of the Technologies and experiences that you run. But before all of that, what would be really useful share any, we could look at, maybe you as a person. A lot of the times when I'm with great minds and female or lead us, I think I always asked if she could sort of go back in time to the early or younger, you, what sort of advice or what would you do different or what advice would you give Yourself?

Yeah, it's a good question. First of all, thank you for having me and it's my pleasure to be here. So sharing going back to my time, my whole life, I'm always being technology. So it's my passion, I studied computer science. I my entire career is in the internet information technology and I've been dedicating my most of my career to the retail industry. And so one of the vice is just keep up with the water and Technology. I mean it's a fantastic Iraq.

It's a faster growing that anybody can imagine so my devices keeping their own. Yeah. Did you stop from your technology Trend? Because obviously being see I am now having all of your different various parts of Technology. Was that one part that you started off in. I started as a developer, okay? Just saw as a developer developer back in the Mainframe stage and then I experienced all the Technology, different eras, write it from Mainframe to client the server, and to cloud,

and now to Ai and GPT. So, it's being a fantastic journey to think I'm jumping around a bit. Do you think that's why you've been so effective at finding these Trends in technology and keeping PacSun in line with that, like social commerce, when I looked at the list of things you like genuinely Filled from a retail perspective, you're ahead of Of the curve. Yeah, right. Andrew pack, verse last year, was a great example, right?

Because because I talk about how e-commerce and metal loss are, you know, that's what verse was for me. It's a shop. Did it all in a neat digital ecosystem? But is that do you feel that that's what's helped you? The fact that you are a programmer or a techie at heart? Totally. But first off are the success of the brand and including technology and our Nation is typically is really a team effort to, so he takes the entire tax on exact leadership,

the entire company. You know, everybody work together. Not only information technology as well. Everywhere else. The entire company has to embrace this. This culture of you knows trying to stay ahead of the curve, right, to embrace Innovation but myself because I do have this technology background And being a developer knowing how systems were developed. Yeah.

How things are put together. Yeah, I really helped me to really understand how each application works and it helped me to stay engaged with the best technology providers such as Salesforce. Yeah. So that's how I can bring the best technology. The cutting-edge technology to apply to business and to support Business initiatives and strategies, because as a information, technology in the merchants merchandising company. So we are not like Salesforce or under 10 companies, we are

Merchants, right? So, our mission is to sell our faster collection of merchandise to the customers. Yeah, so knowing sort of inside out of Technology, how it works together. Really helps me to vet out to the solutions Bring the best fit and the viable solutions to choose support to the business growth. Okay, final question on you and then we'll do think if you could go back again in time and maybe give one piece of advice,

obviously. Being from what I said on the first question you were talking about being a passionate or an expert in your field. So technology, know your field because that's going to help you later in life, what would you what would you like to what would you do again? Or are there any things that you wish We had started or not started anything like yeah. So my whole education was

focused our computer science. I did learn so much about computer science, how Hardware software, you know, Network everything work together. Yeah, so if I could go back, one thing I could have done better. Yeah, wish I wish that if I had the opportunity I would try to learn other things like Like supply chain accounting Finance? Yeah. This is just, you know, expanded the knowledge base.

Yeah. Because I learned those along the career along my working, so that you definitely have to spend a lot of time, you know, learning those while you're doing your technology job. So right now, like my daughter's, when they go to college, I really encourage thongs. Doesn't matter what major they end up choosing with what their dreams and passions are. But I do encourage them to learn business.

I encourage my daughter to the even HR, you know, and business administration, it called me. Yeah, sustainability is environmentalists August, you thought? Yeah, I know, I'm lucky that I'm the technology base the right, but it doesn't mean that everybody getting into this technology report has to be computer science, you know. So you could have studied any Majors. I'm Known people like music become whole. See ya that right any history. Any major but again to stay

interested or anything new. So I think expand you know, wherever you can learn especially that's wonderful. Thank you. I think again some to the areas that I'd like to focus on Innovation especially now with AI and how a i is everywhere. And how because I'm generally for there's a secret to what you your success. What do you feel or how? How have you created that culture of innovation with impacts on?

And how does that link to the other areas of the business, you know, like merchandising or marketing, how have you been able to bring them on the journey in Innovation? Yeah, it's interesting actually. So I yesterday, I was, I sitting in the keynote and it was so fascinating. Seeing how Salesforce, I, you know, took such a early reaction that you have this generative. AI Application ready in business case already. So it was really, really exciting. Yeah but then it I my mind went

back to when I was in post. Read my roommate actually. She studied artificial intelligence. Wow, I was like more than 20 years. Yeah. And at that time was she I remember I saw her have like a model that draw the lines and then try to create the artificial intelligence program. So Could then compared to now. Yeah, with predictive AI. Now, the Vesta to generative AI. It's a totally different game.

Yeah, and then just with the recent genitive generative AIG PT, I think technology has a different meaning for business. So, for Pakistan again, it is the entire leadership. So we have the culture to embrace the new technology on, try to always Ways because our customers are gen Z. Yeah. Gen C. Customers are very technology Savvy. They always adopted the newest technology for us, right?

So the sooner or later, you all where your customers are we are, well, would like, if it's social commerce, you are on Tick-Tock or exactly exact cause our customers aren't he'd call we quickly. Grow more than 2 million followers on I noticed. Yeah, right. So and week in a coma sales as well, right? Do during 2020 or something went up. Yeah it's unbelievable. So so we try to Dedicated devote a lot of our efforts toward the social media because that's

where our customers are. Yeah. Right so we try to really present any. We started accepting the digital currency? Yeah. Back in 2021. So we were one of I think we were the first retail. Quite did you accept? We use a third party. D. OK, and then that's their party. Accepts more than 30, digital currency expanding the integration was easy. So, that's another thing that I try to share with everyone. Yeah. That it, you don't have to start from scratch. Yeah. We'll have to create your

digital wallet. Yeah. Take the Financial Risk. Let's say, you know that, oh my gosh. The digital currency journey goes. Yeah, I hate up and down and your CFO won't feel comfortable if you ask an expert. But so, what we actually chose is that, we engaged your third part. Yeah. The parts. Our party has everything connected. And I didn't know until we started that it needs approval validation, through the government. So they have done everything.

So for me, it's a quick connection and in a mood immediately so that we don't take any risks, we don't have to prepare like for six months. So those kind of things really Really really Empower us to get to this connection with the customer. So we want to show our customers that we know wherever we see their desired, increasing desire of approaching to digital currency. And here we are. We offer you.

We truly listened to love and then we offered, is outside 1/4 or sometimes, like, I mean, the whole sales force being customer obsessed, right? It feels like I have to say this. You're one of the few technology people that it's customer up. S and being able to bring that to Market. Yes. And I think that's the main like, especially with AI.

How did you bring a? I mean, a lot of people say ml or predictive and they try and dress that up as AI, but just focusing in on your customers, your gen Z customers. How are you serving them? How are you, what's the data points that using how, how do you know what they want? Yeah, that's a good question. So I think the recent years so Salesforce have this data Cloud. So we also put together Er, a customer data Cloud that you Aggregate and orchestrate, all

the customer Centric data. So there you really understand your customers better, their behavior, their shopping Behavior, their reaction, and all the marketing Outreach etcetera. So you can truly tailor your messages that when you try to engage with your customers. So all those kind of analytics, Rai Powered. So it has the predictive capability, but, you know, now we have just leapfrogged it to the next level of AI, which is generated, right. So the generative AI helps you

to engage with the customers. And so I was really excited that while I was looking for AI Solutions, such as to automate, the item description attribution based on the the the The merchandise photo because we design and we have things on your website we cannot yet. Okay. I'm waiting for our cell phones. Yeah I was causing some startup companies who specialize in that area.

Yeah. So you have the merchandise photos on the model, you know, on the display and then the AI can also determine based on material the style and generate the description and attribution. So I was talking to The one, just a month ago. Yeah. But all of a sudden today and I was looking for. Okay so somebody started that that AI initiative got and I was wondering what about generated now. It's a totally different game. What are you doing?

So today huge surprise it that to Keynote was tailored to answer my questions. Yeah here you go. So sales words are already put that in place so that we saw that 8U the AI generated and Yuri. Review and approve it. Yeah. That the the important piece is that

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