Fast Fashion Brands Tap AI to Copy Competitors 

Fast fashion companies, previously centered on imitating luxury fashion, are broadening their horizons. Brands like Shein and Temu are not only duplicating runway styles but also drawing inspiration from much more attainable mainstream brands. This evolution is evident in recent legal disputes, such as Uniqlo versus Shein and H&M taking on Shein, highlighting the changing landscape in the industry. 

In the latest fast fashion conflict, Uniqlo is alleging that Shein copied its $20 Mini Round bag, asserting that this imitation erodes customer trust in Uniqlo’s brand. The case underscores a shift in fast fashion, as players within the space now seem unrestricted in their choice of products to emulate. 

However, the noteworthy aspect of this new method is the pricing factor. Instead of replicating a designer cardigan, which might have a retail price of around $3,500, consumers can visit Zara and discover a similar version for $120 or less. This is where the big price difference comes in — fast fashion brands are competing to imitate each other’s stuff with hardly any price gap. 

Additionally, the increase in fast fashion copying is interesting due to the driving force behind it. Data-driven approaches, particularly the use of artificial intelligence (AI), are prevalent. 

Shein, for example, faces allegations of using an AI-powered “design algorithm” that identifies and reproduces pieces with commercial potential. This algorithm, purportedly superior to human efforts, has enabled Shein to create a quickly changing assortment of clothing and accessories that are both stylish and affordable. 

Shein’s algorithm, kept as a closely guarded secret, is believed to prioritize factors like page views and social media mentions to identify designs, seemingly indifferent to brand or price points. This implies that even inexpensive, popular products, once considered safe from imitation, may no longer be protected. 

Consumers Eat It Up

According to a recent PYMNTS report, several data points in the mix suggest that volatility in spending might be a characteristic of the upcoming months. It is widely acknowledged that consumers have been increasing their debt levels. Additionally, the Federal Reserve’s independent analysis of consumer expectations reveals a more optimistic outlook on inflation. 

However, the Fed also identified some ongoing worries about meeting monthly debt obligations. This month, the Fed reported a 0.6% increase in the “average perceived probability of missing a minimum debt payment” for the next three months, reaching 12.4%. This is higher than the average of 11.5% over the past year.  

PYMNTS found that consumers have had to use savings to tackle inflation and turned to credit for holiday spending. Last year, the Fed found that only about two-thirds of consumers felt confident in handling an unexpected $2,000 expense. 

For most, cheaper alternatives will be a priority when it comes to spending in both discretionary and non-discretionary, making dupes of Uniqlo bags from Shein a coveted purchase.  

The post Fast Fashion Brands Tap AI to Copy Competitors  first appeared on PYMNTS.com.