Efficiency and Innovation: How Tchibo Is Setting New Standards with Generative AI – A Highlight from RETAIL NXT
When technology and retail merge in fascinating ways, moments arise that vividly reveal the future of commerce. The presentation by Omar Hairani, Head of Data & AI at Tchibo, was one of those moments at RETAIL NXT 2024. Under the title “Efficiency and Innovation: How Tchibo Is Setting New Standards with GenAI,” Hairani guided the audience into the impressive world of generative AI, using practical use cases to show how Tchibo is not only revolutionizing processes, but also taking creativity and efficiency to unprecedented levels.
The Retail Revolution: Why GenAI?
Generative AI, often perceived as futuristic or experimental, has already become an operational reality at Tchibo. Hairani left no room for doubt:
“This is not a gimmick – this is business.”
In a world where customer expectations around personalization, speed, and experience are growing exponentially, GenAI is a true game-changer. The technology not only offers new possibilities but also provides answers to some of retail’s biggest challenges:
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How can processes become more efficient?
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How can creative output be scaled?
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How can a brand stay close to the customer despite increasing technological innovation?
Tchibo’s answer is a finely tuned combination of cutting-edge technologies, entrepreneurial vision, and unwavering customer focus.
Hyper-Real Images – Artificial, Yet Indistinguishable
A Milestone in Visual Content Creation
Hairani wowed the audience with a stunning demonstration of AI-generated imagery so realistic that even experts couldn’t tell the difference. Using tools like Stable Diffusion and ControlNet, Tchibo has completely reimagined how product imagery is produced.
Cost & Efficiency:
Traditional photo shoots costing up to €15,000 per day are becoming obsolete. Virtual studios powered by AI-generated visual data now deliver high-quality product shots and campaign scenes in record time. Intelligent algorithms simulate lighting, shadows, and material textures with breathtaking accuracy.
Creative Freedom Without Limits:
Products can now be visualized in limitless contexts—without physical constraints. Hairani showcased a series of furniture photographs where both the interiors and environments were generated by AI. The precision in wood grain textures and shadow casting was particularly impressive.
Virtual Models: The New Standard in Fashion Photography
Another breakthrough: the use of avatars in fashion shoots. Hairani described how Tchibo has redefined the entire campaign production process with custom-built digital models:
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Accelerated Product Development:
Traditional design-to-market timelines of up to 50 weeks are drastically reduced by replacing physical prototypes with digital ones. -
Sustainability:
Eliminating physical samples and photo shoots saves both time and resources. -
Technological Innovation:
Tchibo even acquired rights to a digital avatar to flexibly use it across different campaigns.
This digital transformation not only provides operational benefits, but also unlocks entirely new ways for customers to experience and choose apparel.
Learning from Customers: Real-Time AI-Powered Insights
Another highlight of the presentation was Tchibo’s internal platform that analyzes and structures customer feedback in real time. Millions of reviews, social media posts, and emails are aggregated and made accessible to employees via natural-language queries.
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Real-Time Insights:
The platform allows instant recognition of customer trends and sentiments. -
Practical Application:
Feedback for new products—such as the exclusive “Molinari” coffee brand—directly informs product development.
This data-driven approach brings Tchibo closer to its customers and ensures every decision is made with solid insight.
Automated Customer Communication: Efficiency Through AI
Tchibo handles 1.3 million customer inquiries each year—a massive challenge now made far more efficient with GenAI. A significant portion of inquiries is handled fully automatically:
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Resource Savings:
Every automated response saves valuable time, allowing service staff to focus on more complex requests. -
Customer Satisfaction:
Faster responses lead to happier customers—a clear competitive advantage.
Looking Ahead: GenAI as a Strategic Tool
Hairani closed his presentation with a forward-looking perspective on the potential of generative AI. Tchibo aims to use GenAI not only in creative and operational workflows, but increasingly in strategic decision-making:
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Real-Time Shelf Recognition:
Using AI to scan shelves in over 14,000 supermarkets and compare them to reference images in real time. -
Multimodal Applications:
Integrating video, image, and text data to generate complex insights—moving toward truly intelligent systems. -
New Business Fields:
An internal platform integrating cutting-edge models like GPT, Gemini, and Entropiq creates an environment where innovation and efficiency go hand in hand.
The Fascination of Retail Tech: What Tchibo Teaches Us
Omar Hairani’s talk was more than a presentation—it was a glimpse into the future of retail. Tchibo demonstrated how generative AI can successfully bridge the gap between efficiency and creativity.
For RETAIL NXT attendees, one thing became clear: GenAI is not hype—it’s a key technology that is actively reshaping the industry. Tchibo offers a blueprint for how companies can not only embrace this revolution—but lead it.
In Hairani’s words:
“This is just the beginning. The possibilities are endless—we just have to use them.”
