\ The Ivanka Trump Clothing Line Meltdown Could Have Been Predicted Using Artificial Intelligence
Feature: Page (1) of 1 - 02/15/17

The Ivanka Trump Clothing Line Meltdown Could Have Been Predicted Using Artificial Intelligence

By Carol Ozemhoya, Contributing Editor, Vector

Just because you're the president's daughter doesn't shield your business from the ups and downs of the stock market.
In fact, you'd think the POTUS' daughter's clothing line would gain popularity once he was in office.
But instead, it crashed and is still burning, as the Ivanka Trump's clothing line continues to lose placement in stores.
The line, which was dropped by high-end retailer Nordstrom last week, followed by a reduction in promotions by TJ Maxx and Marshalls, today lost Burlington Coat Factory as well.

And about the time Nordstrom made its move, the stock, listed on the stock market as JWN, dropped like a lead balloon before rallying back at the end of the same day.
At first glance, the move to drop the clothing brand seemed to coincide with a social media campaign designed to motivate consumers to boycott it - called #Grab Your Wallet. However, Nordstrom released a press release, claiming it was dropping the brand due to poor sales, adding that the company drops around 10 percent of its products a year.
But then the President had to speak out (which worried some that he was trying to use his position to influence the stock market, which is considered in many political circles as highly unethical). He jumped on social media and criticized Nordstrom for treating his daughter "unfairly."
Within minutes, the stock market reacted and Nordstrom's stock fell dramatically, and then recovered by the end of the day, especially after the New York Times reported that retailers were told to move the products to be less conspicuous and not just drop it.
It Could Have Been Avoided
But the near panic and public drama may have never happened if Nordstrom had initiated the use of artificial intelligence and its sentiment subjectivity analysis by Vector/Indexer.
No doubt in today's world, social media indelibly moves faster than the news. And there are now tools available that can use those very Internet postings to predict what's going on with businesses, transactions, trends, as well as the stock market.
The reaction of the Nordstrom stock price to President Trump's social media statement can be understood with a simple sentiment subjectivity analysis study available through Vector.
A recently developed system, sentiment analysis, could have used the phrase "Ivanka Trump" to detect problems on social media and in news articles. Once analysts witnessed an indication of negative sentiment, a red flag would have gone up and given analysts the opportunity to prevent and perhaps even prepare for the stock's descent.
In addition, these recently developed artificial intelligence systems would have realized a connection between Ivanka Trump's product line, weakening of the brand and its revenue. If Nordstrom had been using Vector's sentiment analysis tools, the near fiasco could have been prevented in the first place.
When you use Vector's tools, sentiment polarity analysis can determine if there are strongly negative feelings about a product, person, organization, geopolitical entity or brand... in this situation, the Ivanka Trump brand.
Let's look at another example. In fact, it's entirely possible that the transportation company Lyft picked up on sentiment analysis in a recent boost in popularity. After all, its technology is so highly developed that a person using Lyft can literally watch a driver approach, know his name, what he or she's name and color and make of the car and how long before the car arrives... all on the screen of a smart phone.
According to the news site CrooksAndLiars.com:
"In this environment, staying neutral over the biggest political controversies, such as the travel ban, can be more dangerous to a company than taking sides; losing a moderate share of the big anti-Trump majorities in these places is a bigger risk than losing a larger share of the small group of his supporters. Uber didn't immediately grasp this lesson. But Lyft, its smaller rival, did. After the immigration order was executed, the firm quickly announced a $1 million donation to the American Civil Liberties Union, which was fighting the ban. Hordes of progressive Uber users made the switch to Lyft."
The business world is very different from the one your dad or grandparents lived in when they started a business. Social media and the Internet in general have changed the way the game is played, and Vector has stepped up to develop new plays to help any business win, while staying hot to the sentiments of the buying public.

Carol Ozemhoya is a Contributing Editor at Vector 

Related Keywords:sentiment analysis

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