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MINDSHOP™| How SHEIN Uses AI to Revolutionize Retail

Founded: 2008

HQ: Singapore

Active users: 74.7 Million (2023)

Annual Revenue: ~$15.7 Billion (2021); $30 Billion (2022)

Leading Markets:

Primary: USA, Europe, China

Secondary: India, Brazil, Mexico

Recent Valuation: $60 Billion

Total Funding: $4.1 Billion

Leading Investors: Lightspeed Venture Partners, Morningside Technology VC, Tiger Global Mgt, Sequoia Capital China, General Atlantic, & others

SHEIN is a Chinese fast-fashion retailer that has grown rapidly in recent years. The company's success is due in part to its use of artificial intelligence (AI). SHEIN uses AI to improve its product design, supply chain management, pricing, and customer service.


SHEIN has seriously studied its target demographics pretty well. So, here are some other interesting facts about SHEIN's active users:

  • The majority of Shein's active users are FEMALE.

  • SHEIN's active users are most likely to be between the ages of 18 and 24.

  • SHEIN's active users are more likely to live in URBAN areas than rural areas.

  • SHEIN's active users are more likely to be college-educated than not



PRODUCT DESIGN


SHEIN uses AI to identify emerging fashion trends. The company's AI engine analyzes social media data and search trends to track what people are talking about and what they are looking for. This data is then used to inform the design of new clothing items.




SUPPLY CHAIN MANAGEMENT


SHEIN's AI-powered supply chain is able to respond in real time to changes in demand. This allows SHEIN to manufacture and deliver clothing items quickly and efficiently. For example, if SHEIN's AI engine detects that a particular product is becoming popular, the company can quickly increase production of that product to meet demand.

PRICING


SHEIN's AI-powered pricing engine uses data on competitor prices, product popularity, and manufacturing costs to set prices for its clothing items. This ensures that SHEIN's prices are competitive and that the company is maximizing its profits.

CUSTOMER SERVICE

SHEIN's AI-powered customer service chatbot is able to answer customer questions and resolve issues quickly and efficiently. This frees up human customer service representatives to focus on more complex issues.

FUTURE OF AI AT SHEIN

SHEIN is committed to using AI to further improve its operations. The company is constantly developing new ways to use AI to improve its product design, supply chain management, pricing, and customer service. As a result, SHEIN is well-positioned to continue to grow rapidly in the years to come.


Here are some of the specific AI models that Shein is using:


Natural language processing (NLP)

NLP is used to analyze text data, such as customer reviews and social media posts. This data is then used to understand customer preferences and to identify trends.


Machine learning (ML)

ML is used to train models that can predict future trends and behaviors. This information is then used to make decisions about product design, pricing, and marketing.


Computer Vision (CV)

Computer vision is used to analyze images and videos. This data is then used to identify products, track inventory levels, and monitor production.


Shein is constantly developing new AI models and applications. As AI technology continues to evolve, Shein is well-positioned to remain at the forefront of the fashion industry.

And the controversy around it? Next Part :)

 

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