The Study Examined Impact of Computer Generated Images Influencer Marketing in the Fashion Industry
In order to formulate results, a qualitative approach was used where 100 respondents including; Instagram account holders, retailers and designers, and representatives from fashion agency. A thematic method was used to analyse the data since it provided the opportunity to base on themes and patterns from both primary and secondary data to answer research questions.
Study Questions
i) Are the digital avatars in the fashion industry likely to replace the human models in the days to come?
ii) What are the impacts of technological automation in the fashion sector?
iii) What is the usefulness of the computer generated images social influencers on social media?
Findings indicate that the high pace of technological developments and change in the external business environment may influence designers to adopt computer generated images models in promoting new brands. The suggestion is supported with the fact that these models are cost effective and very appealing to a significant number of customers as compared with human influencers. Secondly, the study unveils that automation will immensely transform the fashion sector in terms of brand manufacturing, distribution, and marketing. The research anticipates that human involvement in the day to day activities will reduce and this will lead to decreased operation cost and efficiency. As a result, firms will achieve competitiveness because of efficiency and proactively respond to the changing needs of consumers. Lastly but not least, the growing use of social media platforms indeed contributes to access to potential customers. Hence, computer generated image influencers will help brand designers to consistently interact with buyers across the world and further act as a platform in which individuals share their experience regarding the products.
Background Information
Currently, the trend of Computer Generated Influencers (CGI) industry has grown significantly and can be projected to be a $10 billion sector by 2020 (Li, 2018). The approach is rapidly displacing the traditional human models through a replacement with the digital avatars (Kotarba, 2018). CGI entails the use of the computer to come up with virtual influencers that are used to promote product or service brands (Ercegovac, 2017). The method uses the CGI models to close the gap between fiction and the reality while attracting a large following on the media (Ribeiro, 2018).
At the moment, brands are using different artists to produce their digital avatars for influencing social media followers (Wojnarová, 2018). For example, some brands have used the Lil Miquela, one of the artists, to produce the digital avatars. Other businesses have used Shudu to create CGI that has influenced the masses on the social media to like the brand (Wojnarová, 2018). Shudu was the first digital supermodel in the world. The CGI approach has been employed by various business sectors such as Vogue Australia, Balmain and Prada among many others (Wojnarová, 2018).
Unlike the human models in marketing, the CGI is attracting many brands because of its capabilities to minimise the risks in the process (Neal, 2017). Through a fictional social model, the brand is capable of generating engagement of many people on the social media. The strategy is less problematic as compared to the actual human models for influence. The influencing approach is also cost-effective in its nature (Kotarba, 2018). Organisations using this approach are better positioned to achieve the influence of people on the media through less expenditure. The cost of utilising the human models is higher than that involved in the use of CGI avatars. They require little involvement of the chosen celebrity and the financial requirements for development is low (Casaló, Flavián and Ibáñez-Sánchez, 2018). Additionally, the digital avatars are required little production time as compared to the approaches human model influencers (Kotarba, 2018). Hence, precious time is saved and utilised in other aspects of building the brand.
Purpose and Scope
The purpose of the study is to establish the usefulness of the social CGI influencers on social media. The research reviewed the literature on the topic while linking the technology automation processes alongside their pros and cons. Moreover, the paper gives the methodology used, the research findings and the data analyses.
Research Questions
i. Are the digital avatars in the fashion industry likely to replace the human models in the days to come?
ii. What are the impacts of technological automation in the fashion sector?
iii. What is the usefulness of the CGI social influencers on social media?
Rationale
The study is justified by the growth of the CGI influencers in the world today because it can be projected that the sector will increase to over $20 billion in two years’ time (Li, 2018). Different organisations have embraced the strategy to promote their brands in the market, hence, worthy studying (Ribeiro, 2018). Various celebrities are involved in the making of the avatars to market different products within the fashion sector, thus, need to investigate more. Moreover, the fact that the use of the CGI influencers is associated with a lot of benefits to the businesses makes it worthy studying (Kotarba, 2018). The understanding of the benefits can help other organisations in the fashion sector to embrace the CGI marketing approach for their well-being. The study is useful in the prediction of the possibility of replacing the human models with CGI avatars for marketing. The forecast is essential in allowing companies in the fashion sector make suitable decisions that support their increased productivity (Neal, 2017).
Aims and Objectives
i. To establish the possibility of the CGI influencers replacing the human models in the future of the fashion industry.
ii. To determine the impacts of technological automation in the fashion sector.
iii. To evaluate the pros and cons of CGI influencers in the fashion sector and its growth level.
Overview of the Methodology
Generally, the study utilised the interviews as the primary research approach. In the survey, different people involved in marketing were reached such as the representatives in the Fashion Innovation Agency, different brands and the various Instagram holders. Therefore, the methodology yielded reliable outcomes in the study.
Chapter Outlines
Chapter 2 is a review of the literature associated with the CGI influencers in the fashion sector. The key areas of focus include the overview of the secondary data sources and the theories related to the topic.
Chapter 3 is the methodology of the research, exposing the approaches that were utilised to collect and analyse the primary data sources and their related aspects.
Chapter 4 is the finding of the study.
Chapter 5 is an analysis of data and the discussion, interpreting the findings in relation to other early chapters
Chapter 6 is the conclusion and recommendations of the study, in relation to the findings.
Technological Automation
Automation is one of the major transformers of every industry (Manyika et al., 2017). Usually, the process of automation entails the utilisation of technology to eliminate the intervention of humans to perform the tasks. Usually, the process of automating entails the study of the process to identify any kind of predictability of the steps involved to complete the task, hence, utilise the computer system to handle the work. According to Manyika et al (2017), over 51% of the work tasks will be automated by 2055. The study stated that over $2.7 trillion wages from the workforce will be saved. The impacts of technological revolution are being felt in all business sectors such as engineering, manufacturing, hotel, tourism, medicine and fashion among many others (Manyika et al., 2017). Therefore, it is clear that most of the work performed by humans will be handled by the machines. However, the scenario directly translates into job loss by many people, because, their job roles will be easily replaced by the machines, thus, rendering them jobless.
Currently, the use of robots is one of the most common technological invention utilised in the manufacturing sector (Caro and Martínez-de-Albéniz, 2015). They replace manual work at different aspects of the manufacturing process such as picking and shipping among many others. The technology is now the solution to most of the manual activities in every sector. When well-programmed, the robots have the capability of making a complete replacement of most of the job roles in the company. Caro and Martínez-de-Albéniz (2015) argued that the benefits of the use of technology help to improve the productivity of the company within the fashion sector. The research also emphasised that technology use is inevitable in the industry because it yields the quality, saves time and other related benefits (Caro and Martínez-de-Albéniz, 2015). Therefore, the benefits associated with technology use are the key drivers for the technological adoption in every business sector.
Technological Automation in the Fashion Sector
In the fashion sector, automation has been implemented at different points within the supply chain (Caro and Martínez-de-Albéniz, 2015). Nevertheless, as people across the world spend most of their times on laptops, tablets and mobiles, there will be a significant transformation of fashion marketing(Paco and Oliveira, 2017). The rapid growth and vibrant ecosystem of Fashion Tech are being supported by accelerators and incubators. Technology allows the creation of energetic, sustainable, transparent and more robust fashion ecosystem which eliminates misdirection, misalignment, miscommunication and uncertainty (Halvorsen, Hoffmann, Coste-Manière and Stankeviciute, 2013). The fashion tech sector streamlines processes, modernise operations and develop more efficient systems. Marketers' capabilities and expectations continue to evolve as automation technology advances and go hand-in-hand with increased accessibility to customer data and behaviours (Caro and Martínez‐de‐Albéniz, 2015).
In the fashion industry, the use of technology and automation lead to the empowerment of marketers who focus on remaining customer-centric through personalised messages and predictive content recommendations (Jamal and Misra, 2014). Companies are applying marketing automation in the improvement of engagement and efficiency and henceforth, faster growth in revenues. The software is applied to automate the process of segmenting customers, integrating data, managing campaigns and streamlining repetitive tasks which allow managers to focus on other operations that impact productivity (Papachristou, 2015). Physical activities such as fashion modelling are easily automatable. However, the implementation of new technologies will require consideration of a variety of factors (Dwivedi, 2013). The cost of development and deployment of innovative solutions should be weighed alongside technical feasibility of automation that is based upon sustained breakthrough innovation (Lee and Watkins, 2016). Additionally, labour market dynamics, regulatory, user and social acceptance, and business and economic benefits have to be evaluated.
The Power of Social Media Influencers
Accordingto Khamis, Ang and Welling (2017), social media has provided one of the main platforms for the use in B2C marketing. The media is now one of the main battlefields whereby different competing organisations seek attention from users. The utilisation of the influencer marketing approach entails the partnership with the key artist who is prominent in the media to promote the brand. Usually, the social media stars have a large following audience that can communicate the promotional messages, hence, influencing their purchase decisions (Khamis et al., 2017). The followers of the given artists are normally loyal to them, therefore, they can easily be moved to use a given product. In as much as the social media comes out as a powerful media strategy for the business, Gulamali and Persson (2017) argues that the approach should not replace the media strategy for the company. Social media should be combined with other media marketing strategies for a better outcome (Gulamali and Persson, 2017).
Over the last ten years, the rise in technology has resulted in the exponential growth of social media. Brand power and influence is shifting away from models or celebrities to influencers including YouTubers. Bloggers, niche expertise and authority (Lee and Watkins, 2016). Consumers are easily driven by the new peer-to-peer marketing which relies on current end-user demand for authenticity and thus, a more reliable technique. Artificial intelligence has paved way for increased streamlining of influencer-brand collaborations and automation is powerful in the provision of transparency around effectiveness to influencers and brands (Miles, 2014). With technology there is proper FTC-mandated disclosure. However, a rise in fascination among social media audiences and computer-generated influencers is alarming. As a result, advertisers are required to centre attention on the right marketing strategy decisions by using technology to optimise performance (Khamis et al., 2017). Artificial intelligence generated leads to appropriate learning from interactions with targeted market segments accompanied by the development of unique and multi-faceted online personality (Jamal and Misra, 2014). This concept is a reflection on the automatic replies to posts on new content and comments by the bot. automation result in virtual influencers that program personality to allow brands to play puppeteer (Papachristou, 2015). In the future, therefore, avatars are expected to inspire shoppers as artificial intelligence result in the creation of opportunities for digital social media influencers. Different brands such as Prada, Balmain, Tiffany&Coand Vogue Australia have created their own avatars for the fulfilment of the image of the brand.
Computer-Aided Designs (CAD) and Computer-aided Manufacturing (CAM) in Business
The computer-aided design refers to the utilisation of computer technology to design products and documents (Hartley, 2017). The approach is used to model and draft selected aspects of the business processes. On the other hand, CAM refers to the use of computer technology to achieve control of the automated machinery (Hartley, 2017). Both the CAD and CAM involves the use of computer hardware and specific hardware to deliver the business process solution. A study by Tao, Chen, Yu and Liu (2017) stated that the technologies have been utilised in different sectors such as engineering, construction, fashion and manufacturing among many others. Chen (2016) argued that the use of CAD and CAM has replaced the use of traditional methods mainly because of their associated benefits such as efficiency, time saving and accuracy among many others. On the other hand, another research by Fort (2017) stated that the level of adoption of CAD and CAM approaches in industries is affected by the high initial cost involved in embracing the technology. However, in all cases, it comes out clear that the approaches have many benefits to the business, hence, cost as a drawback factor for adoption can only affect small scale businesses.
Both the CAD and CAM have applied in various aspects of the business operation in different sectors. Today, companies are seeking to incorporate technology into their business processes to attain productivity. According to Hartley (2017) over 50% of the manufacturing sector is utilising both CAD and CAM technologies, and have no intention of going back to the traditional approaches. Therefore, the study makes it clear that the adoption of computer technologies to enhance computer efficiency is likely to be adopted by businesses into other operational process aspects (Hartley, 2017). Tao et al (2017) stated that the increment in the use of CAD and CAM is attributed to the current technological advancements in the world today. The improvement in the hardware systems, network and internet among other technologies has propelled the increment in the utilisation of CAD and CAM. There is high compatibility of the systems, hence, promoting the technology usage.
A study by Hartley (2017) clearly stated that CAD has the capabilities of improving the productivity of the design process in the company due to increased efficiency. Moreover, the approach helps to deliver high-quality products in the business (Chen, 2016). There are minimal errors that could have been otherwise committed by humans. Sayem, Kennon and Clarke (2010) stated that the approach is also associated with a high speed of production time and reduced production time. Usually, speed is important in the effectiveness of the business, hence, the ability to release the products to the market within a short time is one of the major sources of the competitive advantage in the sector (Hartley, 2017). Generally, the use of CAD and CAM are essential in helping the business cut down the costs, increase efficiency and improve on its profitability (Chen, 2016). The scenario is supported by the fact that most of the tasks in the business process that could need human intervention can be easily handled by computers.
The use of CAD and CAM in the fashion sector has been utilised to improve their general productivity (Sayem, Kennon and Clarke, 2010). Just like other sectors, the adoption of technology in the fashion industry has been propelled by its benefits (Sayem, Kennon and Clarke, 2010). The power of cost reduction and the high-quality delivery makes it worthy adoption. The aspect is true because the competitiveness in the sector is impacted by cost and quality (Sayem, Kennon and Clarke, 2010).
In as much CAD and CAM are utilised in various companies to improve their process, Fort (2017) argued that technology is associated with different shortcomings such as a need for special skills. The designers must be specialists to use the technology for better results. The decision to train the existing staff to use the technology is affected by the high cost and duration requirements. Moreover, similar research by Tao (2017) found that as much as the running cost is low, the adoption of the technology is drawn back by the high initial cost requirements. New hardware and software are required for the effective use of technology (Chen, 2016). Therefore, these aspects have a negative impact on the adoption of technology by different companies.
Cons of Using Technology and Automation in Influencer Marketing
Technology and automation bring economic and political consequences. Job loss is the main disadvantage that is often associated with technology and automation. Worker displacement can lead to emotional distress accompanied by being displaced geographically (Sobota, Jacho and Korečko, 2016). There is a widespread fear that robots and artificial intelligence will lead to complete destruction of jobs. However, researchers have not gauged the seriousness of the job loss threat. It is approximated that over the next 10 to 15 years’ automation will displace many jobs and the major categories that will experience substantial declines in the fashion industry will include fashion models that are being replaced by CGI influencers (Paço and Oliveira, 2017). The use of avatars will not provide exact credibility as the live presenter more particularly when the human model has been an acknowledged expert of a respected staff member.
Nevertheless, viewers complain of imperfections being experienced through the use of technology and automation especially in a distracting body movement and lip syncing (Barger, Peltier and Schultz, 2016). It becomes difficult to attain perfection when using CGI influencers in marketing as the dependency on technology can lead to break down at one single point and bring the entire process into standstill (Khamis et al., 2017). All the consecutive activities are interconnected and hence, a technical fault leads to downtime which results in imperfection as opposed to human models that are considered to be perfect in the design and modelling processes (Wiedmann, Hennigs and Langner, 2010). Furthermore, the failure to attain perfectness may result from limited creativity and scope as the avatars stick to one major step whereby technology is the virtual standard of doing business.
Principal Academic Theories
Social Communication Theory
Kartz and Lazarsfeld posited the social influence theory within social communication model with a focus on how mass media can be influenced by the power of informal communication (Kim and Ko, 2010). The model is currently known as the two-step model of communication in marketing and is applied in the context of consumer research. According to the theory, there are individuals who are more influential and central than other people and are used in ensuring that informal communication is widespread (Barger et al., 2016). As individuals interact with others to transmit the required message, the influence inserted becomes more powerful.
The market influencers are termed as the opinion leaders and pass the information obtained from marketers of an organisation to targeted consumers within their network (Jamal and Misra, 2014). The first step includes the ability of the market influencer to diffuse information by moving it along. The second step includes accessibility to a network of people whereby the market influencer will pass the intended message and reach a higher number of market segments (Sayem, Kennon and Clarke, 2010). For instance, in Instagram, recognised and popular human models and celebrities advertise different brands to their followers and henceforth, influence their purchasing decisions. Interpersonal communications with individuals within a specific social environment mediate people’s reactions to media messages (Jamal and Misra, 2014). To get people to change their behaviours and attitudes, opinion leaders or social influencers are quite influential. The two-step model has contributed significantly to gain deeper insights into how social media influence the decision-making process of consumers (Barger et al., 2016). Therefore, Kartz and Lazarsfeld hypothesised that ideas flow from the marketers to social influencers and lastly to the wider population.
Everett M. Rogers: Diffusion of Innovation Theory
Rogers' model to influencer marketing centres attention on how inventions, products and ideas undergo and adoption process until they are accepted by the end-user (Halvorsen et al., 2013). Diffusion is a special type of communication which allows innovation to be conveyed among members of a social system through specific channels over a given period (Wiedmann, Hennigs and Langner, 2010). The messages communicated are based on new ideas and the newness implies a degree of uncertainty. According to Rogers, diffusion aids in the provision of more information regarding an idea which eventually leads to a reduction in uncertainty and strengthens customer confidence (Ercegovac, 2017). The word diffusion comprises of both spontaneous and planned spread of inventions and the four steps of the theory include; 1. An innovation, 2. Communication over channels, 3. Over time and 4. Among members of the social system (Halvorsen et al., 2013). To create knowledge of innovations, mass media channels are more effective. However, to form and change people’s attitudes towards an idea, interpersonal channels are essential. The behaviour of individuals is still influenced largely by the opinion leaders, but other intermediaries between the audience's decision making and mass media are also important (Wiedmann, Hennigs and Langner, 2010). For instance, the change agent can encourage or discourage the social influencer to adopt or reject an invention or new product (Luis, Carlos and Sergio, 2018). The product's innovation life cycle comprises of five stages where several adjustments take places such as varying the sales price and the degree of promotion (Tao et al., 2017). The innovators are the trend-setters and are willing to take the risks by trying the product first. In the second stage, there are early adopters who play a significant role in word-of-mouth advertising to create awareness of the new idea and thus, lead to an increment in sales (Ercegovac, 2017). In the third category are the early majority who purchase the product in droves but first wait to ensure the product has become popular through advertisements in the social media (Brorsson and Plotnikova, 2017). Late majority are in the fourth phase and tend to make the decisions to buy after a product or service’s popularity has decreased in the market. Lastly, laggards wait for the price to be lowered before purchasing the product.
Relevance of the Topic to the Fashion Industry
In the fashion industry, influencer marketing is essential and marketers seek innovative strategies that will ensure the intended message reach a wide population of the targeted audience (Hackl, 2018). Fast-fashion outlets such as Prada, Balmain, Tiffany&Coand Vogue Australia have completely flipped the sector as the fashion influencers take the lead. Social media celebrities and bloggers influence the audience tremendously (Sobota, Jacho and Korečko, 2016). For instance, Instagram is seen as a fashion influencer and is an extra asset that has become an important part in strengthening the relationship between the consumer and the clothes (Kim and Ko, 2010). The digital world has increased the speed in the fashion sector which compels brands to focus on becoming more agile by using social media engagement as the strongest indicator accompanied by web traffic and impact on sales (Barger et al., 2016). A large number of fashion brands have centred the marketing strategy on Instagram.
Fashion seeks solace in the realm of AI and tech as the IRL becomes more disturbing. The use of CGI Influencers on social media is increasing and different companies are investing in new technologies and automation to ensure that they access digital avatars with a high number of followers (Sobota, Jacho and Korečko, 2016). There is a slow rise in popularity of the computer-generated influencers who resemble human beings and considered the latest breed of Instagram (Hackl, 2018). These developments have drawn attention from the fashion and beauty brands that focus on creating a world of fantasy.
Discovering new models that are digitally created such as Lil Maquela, Shudu and Nfon is amazing and are not limited by reality or genetics which enables them to take any form envisioned by the creators (Newbold, 2018). The influencer economy is estimated to be a $ 10 billion-industry by 2020 given that it is growing at a tremendous rate. The use of automation and technology has led to an increased yield of impressive return on investment for brands such as Prada, Balmain, TiffanyandCo and Vogue Australia (Sudha and Sheena, 2017). The ROI is approximated to be 11-times higher and thus the major marketing trend in 2018. For instance, Vogue Australia has tapped CGI models in avatar marketing to straddle the differences between reality and fantasy (Hackl, 2018). Influencer marketing is being applied in promoting products over the social-seasonal advertisements.
In Instagram, @LilMiquela is described as the pop culture fixture that poses for Vogue. Avatars are being helped by third-party agencies and IRL figures including a Sweet Thang, Eileen Kelly of Killer and Tracee Ellis Ross to earn deals that are sponsored(Hackl, 2018). Organisations are prone to many risks through the use of influencer marketing and creation of a social star can lead to the generation of engagement as well as minimisation of risks. The use of avatar ambassadors by Street-wear brands has helped to model new styles across different customer end-points by applying fresh angles (Gulamali and Persson, 2017). The avatars remain indefinitely youthful as they pivot with a specific brand. As indicated above, Lil Miquela is the most recognisable avatar in the artificial models with a million followers on Instagram. People believe that the invention of CGI models will deteriorate the modelling industry and lead to loss of jobs among human models. The success of CGI influencers shows that avatars are going mainstream and has taken the internet by storm (Morgan, 2017). There are those individuals who suggest that developing CGI models is cultural appropriation as shown by Shudu who is considered by the photographer as the World’s First Digital Supermodel (Brorsson and Plotnikova, 2017). Some fake models are not created for commercial reasons but it is a strategy to live through fantasy (Gulamali and Persson, 2017). Therefore, influencer marketing using CGI is allowing promotion of conversations regarding diversity in the fashion and beauty industry.
Companies can manufacture a suite of digital celebrities of their own and overcome the challenges encountered when seeking real-life celebrities to access the buying power of the targeted audience. There are increased potentials for CGI creations to become big-name influencers that can compete extensively with sponsored posts by a real-life Jenner or Kardashian (Luis, Carlos and Sergio, 2018). The lifelike digital creations post different message content that features brands and thus, position themselves as assets to brands (Mohr, 2013). For instance, brands can borrow Miquela’s feisty online and Shudu’s melanated skin.
