Articles from First Insight

First Insight, the company that leverages AI to transform consumer feedback into profitable retail strategies, has released new findings on how consumers perceive the rising use of digital twins in retail. The new research reveals that nearly half (48%) of consumers say they’ve never heard of a digital twin before. Once learning that a digital twin is a digital replica of customers built from past purchases, browsing behavior and inferred preferences, 69% of consumers say they would trust a brand less if it relied on digital twins instead of real customer feedback.

First Insight, the company that leverages AI to transform consumer feedback into profitable retail strategies, has released findings from its 2025 Holiday Shopping Report. The new report reveals that a majority of holiday shoppers plan to use social media (57%) and AI tools (39%) to make shopping easier this year—from researching gift ideas and discovering sales. While forty-two percent (42%) of consumers plan to checkout directly through social media, shoppers are increasingly looking to AI as their holiday “one-stop-shop,” with 68% of those using tools such as ChatGPT, Gemini and Claude purchasing directly through them. This shift towards AI-driven shopping is especially prevalent among Gen Z shoppers, with 73% saying they’ll use AI for everything from product discovery to purchase.

First Insight, the company that leverages AI to transform consumer feedback into profitable retail strategies, today announced the beta release of Ellis, its new AI growth copilot powered by the first predictive retail large language model (LLM). Several major retailers are piloting Ellis during the holiday season–the most competitive and margin-sensitive cycle of the year–to get instant answers that guide holiday pricing and promotional moves, while shaping assortment and planning decisions for 2026.

First Insight, the company that leverages AI to transform consumer feedback into profitable retail strategies, has released findings from its latest study, The Quiet Takeover of Private Label. The study reveals that the traditional distinctions between private labels (or branded products made by retailers to sell exclusively in their own stores) and national brands have become so subtle that most consumers can’t tell the difference between them. Nearly three-quarters (71%) of consumers surveyed believed they could recognize a private label when making a purchase, yet 72% were unable to do so when shown side-by-side images of store brand and national brand products.

First Insight, the company that leverages AI to transform consumer feedback into profitable retail strategies, has released the findings of its new Tariffs & Trust: Why Retailers Risk Loyalty with Price Hikes Study. The study reveals that, despite the fact that 68% of brand and retail executives expect a negative reaction from customers–and 73% of consumers confirm they would be frustrated by price increases–83% of executives plan to raise prices anyway. Consumers say they’ll respond to retailers’ decisions with either increased loyalty or decreased trust: Nearly 80% would feel more loyal to brands that absorb tariff-related increases, while nearly 3 in 4 would abandon their favorite brand for a cheaper generic if retail prices rise.

First Insight, the company that leverages agentic AI to transform consumer feedback into profitable retail growth strategies, has rolled out a new approach to predicting pricing and demand to protect retailers’ margins amid tariff uncertainty. The onset of tariffs has made many retailers acutely aware that they’re not prepared for unexpected supply chain volatility and the shifting consumer behaviors that result. First Insight, which already works with major retailers like Gap, Under Armour and Marks & Spencer, to optimize their pricing, merchandising and/or inventory, has turned its attention to making sure retailers can take control of their pricing and inventory strategies using real-time customer insights and predictive scenario modeling.

First Insight, a global leader in AI-powered decision-making, has been recognized as a Major Player in the recently published IDC MarketScape: Worldwide Retail AI-Driven Assortment Planning Solutions 2025 Vendor Assessment (IDC #US52038124, January 2025). The report evaluates vendors based on their capabilities and strategies in AI-driven assortment planning, an increasingly critical area for retailers looking to optimize their product selections and drive profitability.

Successful retailers understand their customers. Boden, the UK-based online apparel retailer, is doubling down on its commitment to customer-centric decision-making by leveraging First Insight’s AI-powered decision intelligence to integrate real-time consumer demand signals into product, merchandising, and pricing strategies.

First Insight, a global leader in AI-powered decision-making, has been recognized as a Major Player in the recently published IDC MarketScape: Worldwide Retail Promotions Management 2024–2025 Vendor Assessment (IDC #US52038224, December 2024). The report evaluates vendors on their capabilities and strategies in the rapidly evolving retail promotions management space.

As economic uncertainty looms and AI technology transforms industries, a new study from First Insight, a global leader in AI-powered decision-making, reveals key trends reshaping consumer behavior in 2025. The survey of 1,131 U.S. consumers highlights the dominance of price in purchasing decisions, generational divides in attitudes toward affordability, and the growing impact of AI-driven personalization.

First Insight, a global leader in AI-powered decision-making, will showcase its latest Gen AI innovations at NRF 2025: Retail's Big Show, January 12-14 at the Javits Center in New York City. At Booth #4549, attendees will experience firsthand how First Insight empowers retailers and brands to design, price, and market products that resonate with customers — while driving measurable profitability and loyalty.

First Insight, a global leader in Voice of the Customer retail solutions, is expanding its partnership with Marks & Spencer (M&S), a leading British retailer, to accelerate its digital transformation. Initially launched in 2015 with a focus on the Lingerie category, this partnership now encompasses M&S’s entire Clothing & Home business, allowing M&S to further enhance customer engagement and brand perception across all categories.

Shoppers are returning to brick-and-mortar stores in significant numbers this holiday amid a notable cutback in post-election seasonal spending, according to a new consumer survey by First Insight, a global leader in customer-driven AI intelligence. The research reveals a 53% increase in consumers who plan to shop only in-stores compared to last year, while intentions to shop only online have dropped 21%. This notable shift underscores the evolving dynamics of consumer behavior and highlights key areas for retailers to adapt in order to drive revenue and customer satisfaction.

First Insight’s latest report, TikTok’s Uncertain Future, reveals that retailers may find themselves caught off guard by potential disruptions if a TikTok ban goes into effect. The report finds that while 68% of retailers acknowledge that a TikTok ban could impact their business and conversion rates, only 28% have a contingency plan in place.

First Insight, a leader in predictive analytics and Voice of Customer (VoC) solutions, has released its latest report, “Retailers’ Blind Spot for Holiday 2024”. The report highlights the critical uncertainties retailers face as they prepare for the upcoming holiday season, emphasizing the need for integrating predictive analytics with consumer insights to optimize pricing, promotions, and marketing strategies.

First Insight’s recent study uncovers a surprising divide within the retail sector: CEOs are half as likely to see AI’s predictive analytics as a top 3 promising application compared to their management teams. The report, “AI Perception Gap: Retail CEOs Lag Behind Teams on Predictive Analytics Value,” underscores a pressing need for strengthened AI education and strategic realignment, especially in enterprises generating over $100 million.

Global leader in Voice of the Customer (VoC) retail solutions, First Insight, Inc. is named as a "Major Player" in the IDC MarketScape: Worldwide Retail Price Optimization Solutions 2023 Vendor Assessment, (Doc# US49458922), March 2023. This is the second time First Insight was named as a “Major Player” in this report.

First Insight announced today that it has launched Ask & Answer to further expand its InsightSUITE’s Pick & Price and Rate & Rank customer engagement capabilities. Ask & Answer adds advanced capabilities for InsightSUITE customers with a quick and easy way to understand better their target marketplace. Whether trying to identify new opportunities in a fast-changing market; the best go-to-market strategy; or ways to improve products with the target audience, InsightSUITE now completely enables executives to make sound, data driven decisions. Unlike traditional market research survey tools or XM platforms that require time-consuming cross-department resource coordination, InsightSUITE provides proven results and market research information in 24 – 48 hours at a fraction of the cost.

First Insight announced today that it has launched new price optimization software that will support retailers and brands with one of greatest challenges they face in today’s economic environment. In a recent report, First Insight and WWD found that 40% of retail executives revealed that, in the face of ongoing business challenges, pricing was the one area within their control. Pricing far outweighed other critical business priorities including inventory investment; inventory and supply chain logistics; customer retention and acquisition; store operations and labor; and last mile logistics. Furthermore, 60% of retail executives believe that Voice of Customer and analytics software like First Insight’s ground-breaking Price Optimization Solution is important or very important to their businesses.

With the official start to the crucial holiday shopping season merely weeks away, a new study has revealed that senior retail leaders are more pessimistic about consumers’ confidence to spend in the face of rising inflation than consumers themselves indicate. The report, conducted by First Insight in partnership with WWD, reveals that 77% of retail executives believe consumers are moderately to extremely concerned about recession, while only 57% of consumers expressed the same concern. The retail executives also think that consumers are cutting back more significantly than consumers say they are across multiple categories, potentially creating a more promotionally-driven —and therefore less profitable—holiday season than may be warranted.

With the holiday shopping season fast approaching, rising prices are negatively impacting consumer confidence. On average, 82% of consumers in France, Germany, Italy, Spain, the UK, and the US have less confidence to spend, according to First Insight’s new report The State of Consumer Spending: Inflation’s Impact on International Consumers. The survey found that the three top expenses hitting consumers hardest are groceries, gas, and dining out.

First Insight, the world leader in Next-Gen Experience Management (XM) for many of the world’s leading vertically integrated brands, department stores, consumer products companies, mass merchant retailers and wholesalers, today announced that it has been identified as a Representative Vendor in the 2022 “Gartner Market Guide for Retail Unified Price, Promotion and Markdown Optimization Applications – Short Life Cycle” report and the “Gartner Market Guide for Retail Unified Price, Promotion and Markdown Optimization Applications – Long Life Cycle” report. Gartner named First Insight as a Representative Vendor in Retail Unified Price, Promotion and Markdown Optimization Applications in Merchandising in both reports.

Sixty-two percent of consumers believe the U.S. is currently in a recession, with a further 17% unsure, according to a new First Insight Report, The State of Consumer Spending: Inflation Fueling Recession Fears. Rising food prices are the biggest recessionary concern for 68% of consumers, with nearly half (48%) also concerned about food shortages.

As employers grapple with whether to recall their teams to in-office work or to offer more flexibility with a remote or hybrid workforce, new data revealed by First Insight indicate that remote/hybrid workers are more negatively impacted by the effects of inflation than full-time in-office workers. Fifty-six percent of remote/hybrid workers say that inflation is causing them to worry about their salaries or current job situation compared to 51% of in-office workers. High grocery prices are impacting the daily lives of 62% of remote/hybrid workers compared to 55% of in-office workers. Discretionary spending is taking a hit as well. Dining out is being reduced by 27% more remote/hybrid workers while travel and vacations are being cut back by 42% more remote/hybrid workers.

Nearly 75% of consumers have less confidence to spend today as inflation hits a 40-year high according to a new First Insight report, The State of Consumer Spending: Inflation Impacting Consumer Confidence. This report reveals that 97% of consumers are reprioritizing how they spend in order to afford their top four most critical purchases: groceries (56%), gasoline (43%), housing costs (29%), and healthcare (18%). Eighty-two percent of respondents indicated that they are searching for less expensive ways to shop through sales and promotions, 40% are staying within a budget, and 28% are simply buying less overall.

A First Insight report reveals fundamental differences between UK and US consumers when it comes to their preferences on sustainable shopping. While recommerce is an important sustainable shopping format in both countries, major differences arise in its utilization. The report found that 57% of UK respondents sell items to secondhand markets while fully 61% of US respondents do not sell items to secondhand markets. Moreover, on a generational basis, 40% more UK Gen Z sell to resale platforms such as ThredUp or Tradsey than their US counterparts, with nearly 30% more UK Millennials than US doing the same.

First Insight, the world’s leading Next-Gen Experience Management (XM) technology platform that is transforming how companies make better decisions leading to a sustainable future, today announced that it has extended its partnerships with world class companies including Caleres, Kohl’s, Rockport, rue21 and Zippo.

Purchasing or renting previously-owned apparel, shoes and accessories continues to grow in popularity as Gen Z’s influence over older generations on sustainability increases. The preference for shopping secondary markets has surged across all generations in a matter of two years with Baby Boomers increasing their utilization by 56 percent, Generation X increasing by 35 percent, Millennials increasing by 33 percent and Gen Z increasing 44 percent. Secondary markets include resale sites such as ThredUp, The RealReal, and Poshmark; peer-to-peer marketplaces such as Depop and Storr; and rental platforms such as Rent the Runway.

Despite September’s better-than-anticipated retail sales numbers, trouble could be on the horizon. Top retail executives have indicated that consumers should expect holiday shopping to be affected by supply chain disruptions and inflation, according to a new survey by First Insight and the Baker Retailing Center at the Wharton School of the University of Pennsylvania.

As the country celebrates the unofficial beginning of summer this Memorial Day weekend, will consumers celebrate the easing of restrictions at the mall? Retailers across the country have marked down everything from swimwear to cars, but how has the pandemic of the past eighteen months shaped shoppers’ behaviors?