Yann Rivoallan

Why SHEIN is Destroying Fashion and the World with AI and TikTok

SHEIN's business model is based on digital, never on stores. Not on creation. Only on low prices. Let's describe in more detail how SHEIN offers these low prices. 1) 𝗔𝗱𝘃𝗲𝗿𝘁𝗶𝘀𝗶𝗻𝗴 𝗰𝗼𝘀𝘁𝘀 𝗵𝗮𝗿𝗱𝗹𝘆 𝗮𝗳𝗳𝗲𝗰𝘁 𝗵𝗶𝗺 There are over 50 billion videos created by influencers for SHEIN on TikTok. These trillions of views have cost SHEIN almost nothing, apart from a few gift cards or discounts. SHEIN has been able to spam us on our Instagram for months. No other brand would dare to take such action. 2) 𝗦𝗮𝗹𝗲 𝗼𝗻 𝗵𝗶𝘀 𝘀𝗶𝘁𝗲 𝗶𝘀 𝗻𝗼𝗿𝗺𝗮𝗹 SHEIN manages its sales to encourage overconsumption: - permanent promotions - discounts with timing that creates fear of missing out - up to 8000 new products per day to increase desire As a result, some people visit the site or app up to 10 times a day. This puts us in the same state as social media, endlessly scrolling, also encouraging us to empty our wallets. It may seem like a small basket, but overconsumption among people with low purchasing power is devastating. 3) 𝗔 𝗱𝗮𝘁𝗮 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝘁𝗼 𝗰𝗿𝗲𝗮𝘁𝗲 𝗳𝗮𝘀𝘁𝗲𝗿 (𝗮𝗻𝗱 𝘁𝗼𝗼 𝗳𝗮𝘀𝘁) SHEIN collects all the data on the web. They track everything we type on Google to know our searches. They examine social media to see what is trending. Since they can produce a new product in 3 days, it is easy to follow a trend. There are even hashtags showing that SHEIN takes inspiration from ... Zara! Internet users show very similar items from Zara and Shein with the hashtags #zaravsshein and #zaradupe. 4) 𝗙𝗮𝗰𝘁𝗼𝗿𝗶𝗻𝗴 𝗰𝗼𝗻𝗱𝗶𝘁𝗶𝗼𝗻𝘀 𝗮𝗿𝗲 𝗱𝗲𝗽𝗹𝗼𝗿𝗮𝗯𝗹𝗲 In the documentary "Inside the Shein Machine", the NGO Public Eye shows workers forced to work up to 18 hours a day, seven days a week. These working conditions allow for low costs. Artificial intelligence and just-in-time work help avoid excessive stock, thus minimizing costs. To summarize: 👉 digital sales = easier to organize with the customer (vs store) 👉 data management and artificial intelligence = faster than others to create, manufacture, and sell 👉 manufacturing under abnormal conditions = even lower costs With these strengths, SHEIN can sell much cheaper. So that its clothes end up in Ghana on abandoned beaches.