Innovation often emerges from boundaries and constraints.

By Fredrik Kridahl

Posted on
16/06/25

In this edition of Weekly Curiosities, we look at how brands are navigating boundaries both physical and regulatory, to connect with modern consumers. From H&M’s AI-driven store upgrades designed to compete with fast fashion online, to Benfica’s immersive virtual shop that blends football fandom with retail, and the rise of new playbooks for online brands in highly regulated industries innovation is often born from constraint.

Thanks for reading and stay curious!

H&M rethinks physical retail through data and AI

AI IN RETAIL: H&M is rolling out artificial intelligence across its physical store network as part of a strategy to compete with low-cost online rivals like Shein and Temu. After shrinking from over 5,000 to about 4,200 locations, the brand is investing in flagship stores in key cities, enhancing them with digital tools to create a more seamless shopping experience.
The retailer is deploying AI for predictive inventory planning, pricing optimization, and tailored marketing, alongside testing generative AI and intelligent agents to refine the shopping journey. “We need real-time product data to keep up with trends,” says Ellen Svanstrom, H&M’s Chief Digital Information Officer. With this, H&M aims to blur the line between its digital platform and physical stores, offering the convenience of e-commerce with the tangible experience people still seek.

Immersive retail meets football in Benfica’s new store

BRAND STRATEGY: Portuguese football giant S.L. Benfica has debuted the Benfica Immersive Store, a pioneering digital storefront that combines immersive 3D environments with multilingual AI-powered customer service. Accessible via the club’s website without the need for downloads or VR headsets, the virtual shop recreates the feel of a locker room where fans can browse merchandise and complete real-world purchases with assistance from an AI agent.

Developed by Infinite Reality using its enterprise-grade platform, the store integrates conversational AI that responds to voice prompts in multiple languages, helping fans find items and providing tailored recommendations. The initiative marks the first time a professional club has implemented a fully immersive, shoppable virtual store offering an innovative way to engage digital-native fans and counter high online drop-off rates with a gamified, agent-led experience.

If successful, Benfica’s immersive store could set a blueprint for other sports clubs and lifestyle brands looking to extend e‑commerce beyond traditional site formats, unlocking new avenues for fan loyalty, global reach, and conversion.

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AI for predictive inventory planning, pricing optimization, and tailored marketing

ASOS Brings Digital-Driven Pop‑Up to Manhattan

POP UP: Online fashion giant ASOS has launched its first-ever brand-owned pop-up in the U.S., titled “Summer, Styled by ASOS”, in SoHo, Manhattan. The two-floor store is open from June 13–22, features curated selections across women’s and men’s fashion, accessories, and highlights premium in-house labels like Arrange, launched in March.

Inside, shoppers can expect exclusive product drops designed for the summer season, alongside digital integration that lets customers browse and order the broader ASOS online range while in-store. This marks a strategic step in ASOS’s post-pandemic resurgence, blending physical retail with its core e‑commerce identity—part of a planned expansion of experiential pop-ups across key U.S. cities later in the year

Marketing Beyond the Algorithm in Controlled Industries

BRAND STRATEGY: Regulated e-commerce brands, in pharmaceuticals, alcohol, firearms, or medical diagnostics are overcoming marketing hurdles imposed by strict rules and platform restrictions. With mainstream ad platforms often blocking or suspending these merchants, companies in these sectors are innovating with tailored strategies.

Rather than relying on traditional ads, brands are investing in:

Direct-to-consumer channels and subscription models to maintain a stable customer base.
Alternative media—such as influencer partnerships, affiliate marketing, and owned content—to engage their audience.
Community-first tactics, including exclusive memberships, educational resources, and forums that build genuine loyalty.

The result: these companies aren’t just surviving heavy regulations, they’re using them as opportunities to connect more directly and authentically with customers.

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