About You takes up the fight against fast fashion giants

Super cheap offers, several in-app competitions, fast deliveries and a selection that has almost everything to offer - the Chinese Fast fashion-With a turnover of around 45 billion dollars last year alone, the online pioneers Shein and Temu have firmly established themselves in global online retail. This is another reason why the US giant Amazon is planning its own online discounter and German competitors are now also being forced to reposition themselves. Zalando and the Hamburg-based online fashion retailer About You in particular are in the midst of intense competition with the Chinese fast fashion giants. In order to assert itself against the aggressively priced competition, About You has now launched a Realignment of its business strategy announced and wants to reposition itself on the market. Managing Director Tarek Müller summarizes the realignment of his company as follows: "This year, we will be offering items that are delivered directly from the factory. come."

The challenge posed by Shein and Temu

The two fast fashion companies Shein and Temu have really shaken up the German fashion market in recent years. With extremely low prices, clever marketing and a huge range of trendy products, they are attracting millions of young customers - including in Germany. For established German online platforms such as Zalando, About You and Otto, this poses a considerable challenge. But how exactly do Chinese companies achieve this success? And how are they able to offer such low prices? The answer is simple: with direct deliveries from the Chinese production factories. The concept has proven itself so far, because by cutting out middlemen, they are able to offer products at lower prices and reduce delivery times at the same time. But how exactly does the Hamburg-based online fashion retailer About You intend to respond? And is a change in corporate strategy enough to set it apart from the competition?

About You's answer: "Cool and innovative"

About You is still a relatively young online fashion portal. And this is also reflected in the company's modern orientation: for ten years, the fashion retailer from Hamburg has been focusing on products that reflect the zeitgeist, working on the AI fashion assistant "Maja" and personalized discounts for all users. Collaborations and joint collections with well-known celebrities such as actress Millie Bobby Brown from the Netflix hit "Stranger Things", model Bella Hadid and rapper Loredana are also part of the online platform's remarkable portfolio. About You aims to appeal to the younger generation in particular.

Despite all this, the number of visitors to the About You website declining. This is another reason why Managing Director Tarek Müller has decided to follow the example of Shein and Temu and offer direct deliveries directly from the manufacturing factories at discounted prices. The key difference: unlike Shein and Temu, the German fashion platform will sell its products predominantly via European and Turkish factories. Customers will therefore not only be won over by shorter delivery times and lower prices, but also by better and more sustainable working conditions in the production chain. Müller is certain that these steps will set his company apart from the European competition: "We will remain the cool, innovative provider that reacts quickly to trends and offers a wide range of products. reacts."

The opportunities and risks

The future of fashion retail is characterized by great uncertainty. While Temu and Shein are redefining the playing field, traditional fashion retailers and platforms must react quickly and flexibly to ensure their competitiveness. A successful adaptation to fast fashion will be crucial to survive in this dynamic market.

About You's realignment harbors both opportunities and risks. On the one hand, the company could succeed in setting itself apart from its German and European competitors and expanding its customer base through direct deliveries and low prices. On the other hand, there is also the risk that customers will continue to rely on the low-cost trendsetters Shein and Temu, who have already made a name for themselves in this segment.

Conclusion

The fast fashion giants are popular due to their low prices. However, attributing the general market development solely to the price factor falls short here: Shein and Temu are good at quickly incorporating new trends into their own production and using them effectively on popular social media platforms such as TikTok and Instagram to directly address the young target group. The Successful social media marketing combined with a wide range of products and low prices is the online discounters' recipe for success. It remains to be seen whether German fashion platforms such as About You or Zalando can catch up and achieve a similar response on the market. Social media platforms reach.