Evolution of Artificial Intelligence and Shifting Consumer Demands Prompt Strategic Marketing Adjustments at The Iconic
During her address at the Elevate conference in Sydney, organized by Monday.com, Georgia Thomas, the director of brand, media, and communications for The Iconic, articulated a pivotal transformation in the allocation of the platform’s marketing resources. She affirmed that there has been no augmentation in the overall marketing budget.
Parent entity Global Fashion Group, which oversees the Zalora platform in Southeast Asia and Dafiti in Latin America, disclosed in its mid-year report for 2025 that the collective ratio of marketing expenses to net merchandise value (NMV) across its three brands has decreased by 150 basis points over the past five years, now resting at a mere 6.9% in the first half of 2025.
This decline persists despite a reported group-wide double-digit downturn in NMV during both the first halves of 2023 and 2024.
Conversely, the ratio of technological and administrative expenses to NMV within the group surged by 360 basis points during the same period, culminating at 15.6%.
Notwithstanding the stagnant marketing expenditure, The Iconic experienced a notable NMV increase of 5.8% in the second quarter of 2025, with the count of active customers exceeding two million.
Thomas attributed this growth to a tactical reinvestment of the budget into cost-saving measures, with an increasingly pronounced emphasis on artificial intelligence.
This could manifest in minor details during creative production shoots, such as enhanced backdrops, reducing the necessity of capturing every element in real life.
We continue to feature models, but with enhancements, Thomas elucidated.
Moreover, she indicated that the marketing strategy for the brand’s Christmas gift cards in 2025 was also conceived utilizing AI techniques.
“We incorporated products into a storytelling campaign, and there is no concern with integrating AI into that process,” she elaborated.
This strategic pivot in marketing expenditure has afforded The Iconic the opportunity to invest more substantially in experiential marketing initiatives.
Thomas highlighted a phenomenon of digital fatigue; consumers are increasingly yearning for tangible experiences. She perceives a renaissance in this trend, which she deems paradoxical in light of advancing AI.
“The appetite for imperfection is escalating among consumers. We will soon witness this shift through remarkable campaigns emerging from the United States,” Thomas remarked.
She cited Prada as an example, which has been producing several vintage-themed campaigns throughout 2025. “Calvin Klein’s decision to employ VHS-style shoots illustrates a distinctive approach, one that AI cannot replicate.
There is an innate apprehension regarding these advancements. What are the implications? Yet, a renaissance is simultaneously unfolding; consumers seek the antithesis of perfection, and finding equilibrium is essential,” she added.
“Ultimately, this newfound efficiency provides us with additional time and resources to invest in more real-world events, which we plan to amplify next year.”
Source link: Ragtrader.com.au.
