Should Zalando be worried by SHEIN in Europe? #SHEIN #ZALANDO #C2M #D2C #chinasnewnormal TIMESTAMPS 00:00 Can SHEIN beat ZALANDO in fashion in Europe? ZALANDO is aiming to get 10% of the market with becoming even more customer centric, while SHEIN is using a new business model of real-time fashion to try and beat ZALANDO in Europe. 01:07 What is the story behind SHEIN? SHEIN was set-up 9 years ago, and has been very popular these last years with generation Z on Tik Tok or Instagram. They became the most downloaded fashion app in the world because they changed the industry model from control of design in the past, to control of the data today. This model is called consumer to manufacturing C2M, which is like Direct-to-Consumer model like from Zalando, but with full integration from the app to the factory floor. 03:27 What is the new factory that SHEIN is creating all about? SHEIN combines the attention factory of Tik Tok with their AI and data platform to feed the factories and creators around the world to produce more products and designs. The new factory is about combining the Tik Tok attention factory with addiction factory of shoppers with the original brand factory of producers and the smart industry 4.0 factories of China. 06:30 What key challenges does SHEIN have? A big problem is quality as the turnaround is to fast. They also have challenges to avoid copycat designs and be culturally or politically correct with the designs from around the world. But the number one problem is environmental as the number of packages is just humongous. 07:30 How is SHEIN doing on providing ultimate convenience? The ultimate convenience is the offer they give consumers to have cheap, good quality, fast trendy fashion in a socially engaging way for each customer. It’s become an addiction. 08:17 Is SHEIN a partner in life? SHEIN is a lifestyle platform that fits the identity of consumers and expression of all creators worldwide. This is how they create an extreme loyalty with their users. 09:07 How is SHEIN changing society and the world? From an environmental point of view, it is a major battle. But improving demand prediction as SHEIN does, can help optimize waste by upscaling or downscaling in real-time and avoid too much stock inventory. 10:04 What is the story behind ZALANDO? Zalando is a European online fashion retailer based in Berlin. Their future is to become a platform to facilitate other brands and retailers to sell on their platform for the European market. They hope to increase their market share in Europe in this way from 3% to 10%. 11:13 What challenges does ZALANDO have? Their main challenge is that 50% of products are returned by consumers. This is because they have a high trust with consumers, and so buyers can send back easily without questions asked. They now are finding smarter ways with data to decide when not to trust certain people taking advantage of their trust. Another challenge is competition from fast-fashion platforms like SHEIN. To tackle this, they have a Zalando Plus offering like Amazon Prime to be faster in delivery and more informative, but it is not yet creating a lock-in of consumers. 15:05 How is ZALANDO doing on providing ultimate convenience? They almost invented the digital convenience in the retail world, which they are now extending with for example visual search to buy products people in the street are wearing. 16:14 Is ZALANDO a partner in life? They help to make sure that you find the products that fit your fashion style with smart advice and suggestions with an algorithmic fashion companion. This resembles the stich fix, but not as far evolved yet with a subscription model. As far as brands is concerned, they are a partner for brands at the center. 18:01 How is ZALANDO changing society and the world? They are trying to lower their own footprint. But the real opportunity is for them to lower the CO2 emissions by leveraging their partner network as the fashion industry is one of the biggest polluters in the world. To do that, they included the environmental impact on their products into the search functionality. But they also focus on second-life purposes of the products sold on Zalando. 20:29 Who has the best offer that we can’t refuse? Despite SHEIN disrupting the fashion industry, the D2C model is definitively not death, and especially in premium offerings or designed brands. The SHEIN model is a bigger treat to companies like Zara. For Zalando, they challenge will become to work with the right brands and incorporate some of the SHEIN model into their offerings. Website: https://www.pascalcoppens.com/ ABOUT PASCAL COPPENS: Website: http://www.pascalcoppens.com/ Linkedin: https://www.linkedin.com/in/pacovision/ Youtube channel: null BOOK - CHINA's NEW NORMAL http://www.pascalcoppens.com/shop