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Buy Or Sell: H&M Bettting Everything on AI to Beat SHEIN's Fast Fashion Dominance · Omni Talk Retail

• 0:00
  H
• 0:00
  and
• 0:00
  M
• 0:00
  is
• 0:00
  betting
• 0:01
  on
• 0:01
  AI
• 0:01
  to
• 0:01
  upgrade
• 0:02
  stores
• 0:02
  and
• 0:02
  to
• 0:03
  face
• 0:03
  off
• 0:03
  against
• 0:04
  online
• 0:04
  rivals,
• 0:05
  according
• 0:05
  to
• 0:05
  the
• 0:05
  Wall
• 0:05
  Street
• 0:06
  Journal.
• 0:06
  H
• 0:06
  and
• 0:06
  M
• 0:06
  is
• 0:07
  betting
• 0:07
  on
• 0:07
  upgrading
• 0:07
  a
• 0:08
  slimmed
• 0:08
  down
• 0:08
  store
• 0:08
  network
• 0:09
  to
• 0:09
  regain
• 0:10
  ground
• 0:10
  lost
• 0:10
  to
• 0:11
  rivals
• 0:11
  that
• 0:11
  sell
• 0:12
  purely
• 0:12
  online
• 0:13
  and
• 0:13
  hopes
• 0:14
  that
• 0:14
  artificial
• 0:14
  intelligence
• 0:15
  will
• 0:15
  smooth
• 0:15
  out
• 0:16
  the
• 0:16
  integration
• 0:16
  of
• 0:16
  its
• 0:17
  digital
• 0:17
  operations
• 0:17
  with
• 0:18
  its
• 0:18
  physical
• 0:18
  Footprint.
• 0:19
  H&M's
• 0:20
  share
• 0:20
  of
• 0:20
  the
• 0:20
  global
• 0:21
  apparel
• 0:21
  market
• 0:21
  declined
• 0:22
  to
• 0:22
  1.1%
• 0:23
  last
• 0:23
  year
• 0:23
  from
• 0:24
  1.2%
• 0:25
  in
• 0:25
  2019
• 0:26
  before
• 0:26
  the
• 0:27
  pandemic,
• 0:27
  according
• 0:27
  to
• 0:28
  global
• 0:28
  data.
• 0:29
  Zara's
• 0:29
  market
• 0:30
  share
• 0:30
  grew
• 0:30
  to
• 0:31
  1.3%
• 0:32
  from
• 0:32
  1%
• 0:33
  during
• 0:33
  the
• 0:34
  same
• 0:34
  time
• 0:34
  period.
• 0:35
  But
• 0:35
  Shein
• 0:36
  expanded
• 0:37
  rapidly
• 0:37
  to
• 0:38
  leapfrog
• 0:38
  the
• 0:38
  European
• 0:39
  fast
• 0:39
  fashion
• 0:39
  giants,
• 0:40
  with
• 0:40
  a
• 0:40
  market
• 0:40
  share
• 0:41
  of
• 0:41
  1.5%
• 0:42
  in
• 0:42
  2024,
• 0:43
  up
• 0:43
  from
• 0:44
  0.1%
• 0:45
  five
• 0:46
  years
• 0:46
  before.
• 0:46
  H&M
• 0:47
  has
• 0:47
  been
• 0:47
  applying
• 0:48
  predictive
• 0:48
  AI
• 0:49
  for
• 0:49
  several
• 0:49
  years
• 0:49
  and
• 0:50
  is
• 0:50
  exploring
• 0:50
  the
• 0:50
  use
• 0:51
  of
• 0:51
  generative
• 0:51
  AI
• 0:52
  and
• 0:52
  AI
• 0:52
  agents.
• 0:53
  It
• 0:53
  tracks
• 0:53
  consumer
• 0:54
  data
• 0:54
  around
• 0:54
  fashion
• 0:55
  trends,
• 0:55
  style
• 0:56
  preferences
• 0:56
  and
• 0:56
  sizes
• 0:57
  to
• 0:57
  learn
• 0:57
  which
• 0:58
  products
• 0:58
  sell
• 0:58
  best
• 0:58
  in
• 0:59
  different
• 0:59
  markets
• 0:59
  and
• 1:00
  transfers
• 1:00
  data
• 1:00
  to
• 1:01
  stores
• 1:01
  with
• 1:01
  the
• 1:01
  aim
• 1:02
  of
• 1:02
  delivering
• 1:02
  better
• 1:03
  consumer
• 1:03
  experience,
• 1:04
  it
• 1:04
  said.
• 1:05
  The
• 1:05
  company
• 1:05
  also
• 1:06
  relies
• 1:06
  on
• 1:06
  AI
• 1:06
  for
• 1:07
  supply
• 1:07
  chain
• 1:07
  management,
• 1:08
  pricing
• 1:08
  and
• 1:08
  marketing,
• 1:09
  among
• 1:09
  other
• 1:09
  tasks.
• 1:10
  Brooks,
• 1:11
  we're
• 1:11
  going
• 1:11
  to
• 1:11
  you
• 1:11
  first
• 1:11
  here.
• 1:12
  Will
• 1:13
  the
• 1:13
  focus
• 1:13
  on
• 1:13
  AI
• 1:14
  and
• 1:14
  better
• 1:14
  store
• 1:14
  operations
• 1:15
  be
• 1:15
  enough
• 1:15
  for
• 1:15
  H
• 1:16
  and
• 1:16
  M
• 1:16
  to
• 1:16
  stave
• 1:16
  off
• 1:16
  the
• 1:17
  threat
• 1:17
  of
• 1:17
  Shein
• 1:18
  and
• 1:18
  Temu?
• 1:19
  Oh
• 1:20
  hey,
• 1:20
  and
• 1:20
  I
• 1:20
  just
• 1:21
  counted
• 1:21
  you
• 1:22
  said
• 1:22
  AI
• 1:23
  12
• 1:23
  times
• 1:24
  in
• 1:24
  what
• 1:24
  you.
• 1:24
  Just
• 1:25
  oh
• 1:25
  my
• 1:25
  God.
• 1:26
  Or
• 1:27
  maybe
• 1:27
  it
• 1:27
  was
• 1:27
  13
• 1:27
  times.
• 1:28
  Now
• 1:28
  I'm
• 1:29
  reading
• 1:29
  the
• 1:29
  Wall
• 1:29
  Street
• 1:30
  Journal
• 1:30
  article.
• 1:30
  Brooks,
• 1:31
  I
• 1:31
  take
• 1:31
  no
• 1:31
  responsibility
• 1:32
  for
• 1:32
  that.
• 1:32
  But
• 1:33
  yes,
• 1:33
  I
• 1:33
  agree
• 1:33
  with
• 1:34
  you.
• 1:34
  Go
• 1:34
  ahead.
• 1:35
  Look,
• 1:36
  I
• 1:36
  think
• 1:36
  it's
• 1:36
  hard
• 1:36
  to
• 1:36
  say
• 1:37
  no
• 1:37
  to
• 1:37
  more
• 1:37
  AI.
• 1:38
  I
• 1:38
  mean
• 1:38
  I'm
• 1:39
  not
• 1:39
  going
• 1:39
  to
• 1:39
  buck
• 1:39
  that
• 1:39
  trend.
• 1:40
  Yeah.
• 1:40
  And
• 1:41
  I'm
• 1:41
  going
• 1:41
  to
• 1:41
  say
• 1:42
  that
• 1:42
  fast
• 1:43
  fashion
• 1:43
  has
• 1:44
  a
• 1:44
  lot
• 1:44
  more
• 1:44
  to
• 1:44
  gain
• 1:45
  than
• 1:45
  most.
• 1:46
  I
• 1:46
  mean
• 1:46
  H
• 1:46
  and
• 1:47
  M
• 1:47
  is
• 1:47
  going
• 1:47
  to
• 1:47
  benefit
• 1:48
  a
• 1:48
  lot
• 1:48
  here.
• 1:48
  So
• 1:48
  I
• 1:49
  like
• 1:49
  the
• 1:49
  push.
• 1:50
  Think
• 1:51
  about
• 1:51
  the
• 1:51
  opportunity
• 1:52
  with
• 1:52
  AI,
• 1:53
  particularly
• 1:53
  in
• 1:54
  apparel
• 1:54
  returns.
• 1:55
  You're
• 1:55
  talking
• 1:56
  to
• 1:56
  somebody
• 1:56
  who
• 1:56
  spends
• 1:57
  a
• 1:57
  lot
• 1:57
  of
• 1:57
  time
• 1:57
  in
• 1:58
  A
• 1:58
  and
• 1:58
  M.
• 1:58
  And
• 1:59
  you
• 1:59
  know
• 1:59
  what
• 1:59
  I'm
• 1:59
  doing
• 1:59
  in.
• 2:00
  Sorry,
• 2:01
  in
• 2:01
  HM
• 2:02
  H&M.
• 2:02
  Yeah,
• 2:03
  I
• 2:03
  said
• 2:03
  A
• 2:03
  and
• 2:03
  M
• 2:04
  both.
• 2:04
  You
• 2:05
  spent
• 2:05
  time
• 2:05
  with
• 2:05
  both.
• 2:07
  I
• 2:07
  spent
• 2:07
  a
• 2:08
  lot
• 2:08
  of
• 2:08
  time
• 2:08
  in
• 2:08
  H
• 2:08
  and
• 2:09
  M
• 2:09
  returning
• 2:10
  my
• 2:10
  wife's
• 2:11
  online
• 2:13
  apparel
• 2:13
  purchases.
• 2:15
  And
• 2:15
  anything
• 2:15
  that
• 2:16
  you
• 2:16
  can
• 2:16
  do
• 2:16
  to
• 2:16
  make
• 2:17
  that
• 2:17
  a
• 2:17
  more
• 2:17
  efficient
• 2:18
  process,
• 2:18
  reduce
• 2:19
  the
• 2:19
  number
• 2:19
  of
• 2:20
  returns.
• 2:21
  That's
• 2:21
  got
• 2:21
  big,
• 2:22
  big
• 2:23
  return
• 2:23
  on
• 2:23
  investment
• 2:24
  for
• 2:25
  H
• 2:25
  and
• 2:25
  M.
• 2:26
  Right?
• 2:27
  Yeah.
• 2:27
  Bryson,
• 2:28
  what
• 2:28
  about
• 2:28
  you?
• 2:28
  What
• 2:29
  are
• 2:29
  your
• 2:29
  thoughts
• 2:29
  here?
• 2:29
  Do
• 2:29
  you
• 2:29
  think
• 2:30
  that
• 2:30
  this
• 2:30
  is
• 2:30
  a
• 2:30
  smart
• 2:31
  investment
• 2:31
  and
• 2:32
  will
• 2:32
  this
• 2:32
  keep
• 2:33
  them
• 2:33
  in
• 2:34
  the
• 2:34
  the
• 2:34
  competent
• 2:35
  competition
• 2:36
  against
• 2:36
  Sheen
• 2:37
  and
• 2:37
  teu.
• 2:38
  So
• 2:38
  I
• 2:38
  think
• 2:38
  it's
• 2:39
  the
• 2:39
  right
• 2:39
  move.
• 2:39
  You
• 2:39
  know,
• 2:40
  it's
• 2:41
  hard
• 2:41
  to
• 2:41
  argue
• 2:41
  that
• 2:41
  it's
• 2:41
  not
• 2:42
  right.
• 2:42
  It's
• 2:42
  going
• 2:42
  to
• 2:43
  help
• 2:43
  them,
• 2:44
  you
• 2:44
  know,
• 2:44
  really
• 2:45
  zero
• 2:45
  in
• 2:45
  on
• 2:45
  better
• 2:46
  understanding
• 2:46
  their
• 2:46
  customers.
• 2:47
  Aligning
• 2:48
  assortment.
• 2:49
  The
• 2:49
  bigger
• 2:49
  question,
• 2:49
  is
• 2:50
  this
• 2:50
  going
• 2:50
  to
• 2:50
  be
• 2:50
  enough
• 2:50
  to
• 2:50
  stave
• 2:51
  off
• 2:51
  Temu
• 2:51
  and
• 2:51
  the
• 2:51
  threat
• 2:52
  of
• 2:52
  Sheen?
• 2:52
  No.
• 2:52
  Yeah,
• 2:53
  it's
• 2:53
  not.
• 2:53
  I
• 2:54
  think
• 2:54
  what
• 2:54
  you
• 2:54
  have
• 2:54
  to
• 2:54
  recognize
• 2:55
  here
• 2:55
  is
• 2:55
  that,
• 2:56
  you
• 2:56
  know,
• 2:56
  it
• 2:57
  is
• 2:57
  the
• 2:57
  right
• 2:57
  move,
• 2:57
  it
• 2:57
  is
• 2:58
  the
• 2:58
  right
• 2:58
  play,
• 2:58
  but
• 2:59
  just
• 2:59
  in
• 2:59
  taking
• 3:00
  this
• 3:00
  approach,
• 3:00
  they're
• 3:01
  essentially
• 3:01
  going
• 3:01
  to
• 3:01
  narrow
• 3:02
  their
• 3:02
  assortment
• 3:02
  and
• 3:02
  their
• 3:03
  offerings
• 3:03
  for
• 3:03
  the
• 3:03
  customers,
• 3:04
  right?
• 3:04
  Yeah,
• 3:04
  it's
• 3:04
  going
• 3:05
  to
• 3:05
  be
• 3:05
  the
• 3:05
  right
• 3:05
  products,
• 3:05
  but
• 3:06
  it
• 3:06
  kind
• 3:06
  of,
• 3:06
  you
• 3:07
  know,
• 3:07
  flies
• 3:07
  contrary
• 3:08
  to
• 3:08
  the
• 3:08
  unlock
• 3:08
  that
• 3:09
  digital
• 3:09
  has
• 3:09
  in
• 3:09
  the
• 3:09
  sense
• 3:10
  of
• 3:10
  the
• 3:10
  expanded
• 3:10
  assortment.
• 3:11
  Right.
• 3:12
  So
• 3:12
  everything
• 3:12
  for
• 3:12
  everybody.
• 3:13
  And,
• 3:14
  you
• 3:14
  know,
• 3:14
  couple
• 3:14
  that
• 3:14
  with
• 3:14
  Sheen
• 3:15
  and
• 3:15
  Temu's
• 3:15
  low
• 3:16
  cost,
• 3:16
  you
• 3:16
  know,
• 3:16
  high
• 3:17
  velocity
• 3:17
  model,
• 3:18
  it's,
• 3:19
  you
• 3:19
  know,
• 3:19
  creating
• 3:19
  an
• 3:19
  uneven
• 3:20
  playing
• 3:20
  field
• 3:20
  in
• 3:21
  that
• 3:21
  regard.
• 3:21
  It
• 3:22
  will
• 3:22
  drive
• 3:22
  efficiencies,
• 3:23
  but,
• 3:23
  you
• 3:23
  know,
• 3:24
  it's,
• 3:24
  you
• 3:24
  know,
• 3:24
  potentially
• 3:25
  going
• 3:25
  to
• 3:25
  fall
• 3:25
  short
• 3:26
  of
• 3:26
  customer
• 3:26
  expectations
• 3:26
  with
• 3:27
  respect
• 3:27
  to
• 3:27
  assortment.
• 3:28
  And
• 3:28
  then,
• 3:28
  you
• 3:29
  know,
• 3:29
  we
• 3:29
  have
• 3:29
  to
• 3:29
  also
• 3:29
  take
• 3:30
  into
• 3:30
  account
• 3:30
  that
• 3:30
  just
• 3:30
  as
• 3:31
  H
• 3:31
  and
• 3:31
  M
• 3:31
  is
• 3:31
  now
• 3:31
  making
• 3:31
  this
• 3:32
  investment,
• 3:32
  we
• 3:32
  could
• 3:32
  argue
• 3:33
  that
• 3:33
  Sheen
• 3:33
  and
• 3:33
  Temu
• 3:34
  have
• 3:34
  arguably
• 3:35
  been
• 3:35
  executing
• 3:35
  AI
• 3:36
  and
• 3:36
  probably
• 3:36
  doing
• 3:37
  so
• 3:37
  at
• 3:37
  a
• 3:37
  greater
• 3:37
  scale
• 3:38
  than
• 3:38
  that
• 3:38
  of
• 3:38
  H
• 3:39
  and
• 3:39
  M.
• 3:39
  So
• 3:39
  it
• 3:40
  becomes
• 3:40
  a
• 3:40
  way
• 3:40
  to
• 3:40
  narrow
• 3:41
  the
• 3:41
  gap.
• 3:42
  I
• 3:42
  don't
• 3:42
  think
• 3:42
  it
• 3:42
  becomes
• 3:43
  a
• 3:43
  point
• 3:43
  of
• 3:43
  differentiation.
• 3:44
  It
• 3:44
  is
• 3:44
  a
• 3:44
  must
• 3:44
  have
• 3:44
  and
• 3:45
  a
• 3:45
  must
• 3:45
  do,
• 3:46
  but
• 3:46
  it's
• 3:46
  not
• 3:46
  going
• 3:47
  to
• 3:47
  be
• 3:47
  enough
• 3:47
  to
• 3:47
  stave
• 3:47
  off
• 3:48
  their
• 3:48
  continued
• 3:48
  growth.
• 3:49
  Okay,
• 3:50
  I.
• 3:51
  Chris,
• 3:52
  you.
• 3:52
  You're
• 3:52
  nodding
• 3:53
  along.
• 3:53
  Are
• 3:53
  you
• 3:53
  in
• 3:53
  agreement
• 3:54
  here?
• 3:55
  Yeah.
• 3:55
  Unlike
• 3:55
  the
• 3:56
  last
• 3:56
  headline,
• 3:56
  I
• 3:57
  vociferously
• 3:57
  agree
• 3:58
  with
• 3:58
  Bryson
• 3:58
  on
• 3:58
  this
• 3:58
  one.
• 3:59
  I
• 3:59
  think
• 3:59
  it's
• 3:59
  the
• 3:59
  right
• 3:59
  move.
• 4:00
  You
• 4:00
  know,
• 4:00
  improving
• 4:01
  productivity
• 4:01
  is
• 4:02
  always
• 4:02
  a
• 4:02
  good
• 4:02
  thing
• 4:02
  to
• 4:02
  do,
• 4:02
  but
• 4:03
  it's
• 4:03
  not
• 4:03
  going
• 4:03
  to
• 4:03
  do
• 4:04
  a
• 4:04
  darn
• 4:04
  thing
• 4:04
  to
• 4:04
  stave
• 4:05
  off,
• 4:05
  you
• 4:05
  know,
• 4:06
  the
• 4:06
  growth
• 4:06
  threat
• 4:07
  from
• 4:07
  the
• 4:07
  online
• 4:08
  competitors,
• 4:09
  you
• 4:09
  know,
• 4:09
  because
• 4:10
  if
• 4:10
  you
• 4:10
  look
• 4:10
  at
• 4:10
  it
• 4:10
  like
• 4:11
  improving
• 4:11
  stores
• 4:11
  is
• 4:12
  exactly
• 4:12
  about
• 4:12
  that.
• 4:12
  It's
• 4:13
  about
• 4:13
  improving,
• 4:13
  you
• 4:13
  know,
• 4:14
  things
• 4:14
  on
• 4:15
  the
• 4:15
  margin.
• 4:15
  It
• 4:15
  isn't
• 4:16
  transformative,
• 4:16
  nor
• 4:17
  does
• 4:17
  it
• 4:17
  insulate
• 4:17
  you
• 4:17
  from
• 4:18
  the
• 4:18
  channel
• 4:18
  threat.
• 4:18
  So,
• 4:19
  you
• 4:19
  know,
• 4:19
  and
• 4:20
  I
• 4:20
  would
• 4:20
  actually
• 4:20
  go
• 4:20
  a
• 4:20
  step
• 4:21
  further
• 4:21
  here,
• 4:21
  like
• 4:21
  where
• 4:22
  I
• 4:22
  think
• 4:22
  it,
• 4:23
  it
• 4:23
  brings
• 4:23
  up
• 4:23
  questions
• 4:24
  about
• 4:24
  how
• 4:24
  the
• 4:25
  leadership
• 4:25
  at
• 4:25
  H
• 4:25
  and
• 4:25
  M
• 4:26
  is
• 4:26
  really
• 4:26
  thinking
• 4:26
  about
• 4:26
  this.
• 4:27
  Because
• 4:27
  if
• 4:27
  this
• 4:27
  is
• 4:27
  what
• 4:28
  they're
• 4:28
  talking
• 4:28
  about,
• 4:28
  I
• 4:29
  wonder.
• 4:29
  I
• 4:29
  don't
• 4:30
  think
• 4:30
  they've
• 4:30
  got
• 4:30
  enough
• 4:30
  dry
• 4:30
  powder
• 4:31
  in
• 4:31
  their
• 4:31
  keg.
• 4:32
  And
• 4:32
  the
• 4:32
  reason
• 4:32
  I
• 4:32
  say
• 4:32
  that
• 4:33
  too
• 4:33
  is
• 4:33
  because
• 4:33
  I
• 4:33
  look
• 4:33
  at
• 4:34
  their
• 4:34
  soho
• 4:34
  store
• 4:35
  in
• 4:35
  New
• 4:35
  York,
• 4:36
  it's
• 4:36
  a
• 4:36
  very
• 4:36
  reduced
• 4:37
  assortment
• 4:37
  as
• 4:38
  well.
• 4:38
  That
• 4:38
  plays
• 4:39
  on
• 4:39
  this
• 4:39
  idea
• 4:40
  that
• 4:40
  you
• 4:40
  can
• 4:40
  put
• 4:40
  less
• 4:41
  products
• 4:41
  in
• 4:41
  your
• 4:41
  store.
• 4:42
  And
• 4:42
  I
• 4:43
  just
• 4:43
  don't
• 4:43
  think
• 4:43
  at
• 4:44
  their
• 4:44
  margins
• 4:45
  they
• 4:45
  can
• 4:45
  afford
• 4:46
  to
• 4:46
  do
• 4:46
  that
• 4:46
  in
• 4:47
  a
• 4:47
  way
• 4:47
  that
• 4:47
  they're
• 4:47
  going
• 4:47
  to
• 4:47
  be
• 4:48
  able
• 4:48
  to
• 4:48
  compete
• 4:49
  against
• 4:49
  their
• 4:49
  current
• 4:50
  business
• 4:50
  model.
• 4:50
  Then
• 4:51
  you
• 4:51
  throw
• 4:51
  in
• 4:51
  the
• 4:51
  threat
• 4:51
  of
• 4:52
  Sheehan
• 4:52
  and
• 4:52
  Teemu
• 4:53
  as
• 4:53
  well.
• 4:54
  I
• 4:54
  just
• 4:54
  think
• 4:54
  it's,
• 4:55
  it's,
• 4:55
  it's
• 4:55
  going
• 4:55
  to
• 4:55
  be
• 4:55
  a
• 4:56
  hard
• 4:56
  game
• 4:56
  to
• 4:56
  play.
• 4:57
  And
• 4:57
  so
• 4:57
  I
• 4:57
  think
• 4:57
  the,
• 4:58
  I
• 4:58
  think
• 4:59
  the
• 4:59
  leadership
• 4:59
  needs
• 5:00
  to
• 5:00
  come
• 5:00
  up
• 5:00
  with
• 5:00
  some
• 5:00
  more
• 5:00
  ideas
• 5:01
  here
• 5:01
  pretty
• 5:01
  quick
• 5:02
  is
• 5:02
  my,
• 5:02
  is
• 5:02
  my
• 5:03
  take
• 5:03
  on
• 5:03
  this
• 5:03
  one.
• 5:04
  What
• 5:04
  else
• 5:04
  would
• 5:05
  you
• 5:05
  do?
• 5:05
  I
• 5:05
  mean,
• 5:05
  what
• 5:06
  would
• 5:06
  you
• 5:06
  have
• 5:07
  them
• 5:07
  do
• 5:08
  to
• 5:08
  really
• 5:08
  stay
• 5:09
  competitive
• 5:09
  that
• 5:10
  they
• 5:10
  aren't
• 5:10
  doing?
• 5:11
  Because
• 5:11
  I
• 5:11
  think
• 5:11
  that's
• 5:11
  my
• 5:12
  question
• 5:12
  here.
• 5:12
  Like,
• 5:12
  I
• 5:13
  think
• 5:13
  they
• 5:13
  are.
• 5:14
  This
• 5:14
  is
• 5:14
  the
• 5:14
  right
• 5:15
  move
• 5:15
  for
• 5:15
  H
• 5:15
  and
• 5:15
  M
• 5:16
  to
• 5:16
  be
• 5:16
  focused
• 5:16
  on
• 5:18
  to
• 5:18
  stay
• 5:18
  competitive
• 5:19
  as
• 5:19
  a
• 5:19
  business
• 5:20
  entity.
• 5:20
  But
• 5:20
  what
• 5:20
  would
• 5:21
  you
• 5:21
  say
• 5:21
  that
• 5:21
  they
• 5:21
  should
• 5:21
  be
• 5:22
  focusing
• 5:22
  more
• 5:22
  on,
• 5:23
  Chris,
• 5:23
  to,
• 5:24
  to
• 5:25
  stay
• 5:25
  more
• 5:25
  competitive
• 5:25
  or
• 5:26
  to
• 5:26
  put
• 5:26
  them
• 5:26
  in
• 5:26
  a
• 5:26
  better
• 5:26
  place
• 5:27
  against
• 5:27
  Shein
• 5:27
  and
• 5:27
  Timu?
• 5:28
  Yeah,
• 5:28
  I
• 5:29
  think
• 5:29
  because
• 5:29
  you
• 5:29
  have
• 5:29
  this.
• 5:30
  I
• 5:30
  think
• 5:30
  this
• 5:30
  is
• 5:30
  very
• 5:30
  similar
• 5:31
  to
• 5:31
  what
• 5:31
  happened
• 5:32
  with
• 5:32
  E
• 5:32
  Commerce
• 5:32
  back
• 5:32
  in
• 5:33
  the
• 5:33
  day.
• 5:33
  I
• 5:33
  mean,
• 5:33
  you
• 5:34
  have
• 5:34
  stores,
• 5:34
  so
• 5:35
  stores
• 5:35
  are
• 5:35
  still
• 5:35
  going
• 5:35
  to
• 5:35
  be
• 5:35
  a
• 5:36
  valuable
• 5:36
  asset
• 5:37
  in
• 5:37
  terms
• 5:37
  of
• 5:37
  how
• 5:37
  you
• 5:38
  and
• 5:38
  reach
• 5:38
  your
• 5:38
  consumer.
• 5:39
  So
• 5:39
  I
• 5:40
  think
• 5:40
  then
• 5:40
  you
• 5:40
  have
• 5:40
  to
• 5:40
  meet
• 5:41
  the
• 5:41
  table
• 5:41
  stakes
• 5:41
  game
• 5:42
  on
• 5:42
  the
• 5:42
  production
• 5:43
  side
• 5:43
  and
• 5:43
  the
• 5:44
  fast
• 5:44
  fashion
• 5:44
  that
• 5:44
  you
• 5:45
  can
• 5:45
  produce
• 5:45
  digitally.
• 5:46
  So
• 5:46
  I
• 5:46
  would
• 5:46
  actually
• 5:47
  be
• 5:47
  trying
• 5:47
  to
• 5:48
  emulate
• 5:48
  what
• 5:49
  Temu
• 5:49
  and
• 5:49
  Sheen
• 5:50
  are
• 5:50
  doing
• 5:50
  with
• 5:50
  the
• 5:50
  factories
• 5:51
  that
• 5:51
  you're
• 5:51
  working
• 5:51
  with
• 5:52
  and,
• 5:52
  and
• 5:52
  giving
• 5:52
  the
• 5:53
  customers
• 5:53
  the
• 5:53
  same
• 5:53
  options
• 5:54
  to
• 5:54
  have
• 5:55
  those
• 5:55
  small
• 5:56
  runs
• 5:56
  of
• 5:56
  batch
• 5:57
  or
• 5:57
  those
• 5:57
  small
• 5:57
  runs
• 5:58
  of
• 5:58
  products
• 5:58
  sent
• 5:59
  to
• 5:59
  them
• 5:59
  on
• 5:59
  demand.
• 6:00
  That's,
• 6:00
  that's
• 6:00
  what
• 6:00
  I
• 6:01
  would
• 6:01
  be
• 6:01
  doing.
• 6:01
  I
• 6:01
  would
• 6:02
  be
• 6:02
  trying
• 6:02
  to
• 6:02
  fortify
• 6:03
  my
• 6:03
  position,
• 6:04
  you
• 6:04
  know,
• 6:04
  similar
• 6:04
  to
• 6:05
  how
• 6:05
  people
• 6:05
  ultimately
• 6:06
  fortified
• 6:06
  their
• 6:06
  position
• 6:06
  on
• 6:07
  E
• 6:07
  Commerce
• 6:07
  back
• 6:07
  in
• 6:07
  the
• 6:08
  day.
• 6:08
  Yeah,
• 6:09
  I
• 6:09
  think,
• 6:09
  I
• 6:09
  think
• 6:09
  there's
• 6:10
  a
• 6:10
  couple
• 6:10
  of
• 6:10
  things
• 6:10
  that
• 6:10
  we
• 6:10
  have
• 6:10
  to
• 6:11
  take
• 6:11
  into
• 6:11
  account
• 6:12
  here.
• 6:12
  I
• 6:12
  think,
• 6:13
  you
• 6:14
  know,
• 6:14
  the,
• 6:14
  the
• 6:14
  soho
• 6:15
  store,
• 6:15
  the
• 6:15
  H
• 6:15
  and
• 6:16
  M
• 6:16
  store
• 6:16
  is
• 6:16
  a
• 6:16
  lab
• 6:17
  store
• 6:17
  for
• 6:17
  H
• 6:17
  and
• 6:17
  M.
• 6:18
  I
• 6:18
  don't
• 6:18
  think
• 6:18
  that
• 6:18
  you,
• 6:19
  you
• 6:19
  know,
• 6:19
  they
• 6:19
  are,
• 6:20
  they
• 6:20
  tested
• 6:20
  fair
• 6:20
  point.
• 6:21
  They
• 6:21
  haven't
• 6:21
  said
• 6:21
  that
• 6:22
  out
• 6:22
  yet.
• 6:22
  That
• 6:22
  they're
• 6:22
  rolling
• 6:23
  that
• 6:23
  they've
• 6:23
  already
• 6:23
  rolled
• 6:24
  out
• 6:24
  like
• 6:24
  the
• 6:25
  RFID
• 6:25
  programming
• 6:26
  and
• 6:26
  that
• 6:27
  kind
• 6:27
  of
• 6:27
  thing.
• 6:27
  Like
• 6:27
  they've
• 6:27
  already
• 6:28
  rolled
• 6:28
  that
• 6:28
  out
• 6:28
  to
• 6:28
  other
• 6:28
  stores.
• 6:29
  They're
• 6:29
  not
• 6:29
  consolidating.
• 6:30
  I
• 6:31
  think
• 6:31
  that
• 6:31
  was
• 6:32
  more
• 6:32
  for
• 6:32
  a
• 6:32
  lab
• 6:33
  perspective
• 6:33
  to
• 6:33
  like
• 6:34
  test
• 6:34
  on
• 6:34
  a
• 6:34
  smaller
• 6:35
  batch
• 6:35
  of
• 6:35
  product.
• 6:36
  But
• 6:36
  I
• 6:36
  think
• 6:36
  something
• 6:37
  that's
• 6:37
  really
• 6:37
  important
• 6:37
  to
• 6:38
  hit
• 6:38
  on
• 6:38
  is
• 6:38
  that.
• 6:39
  And
• 6:39
  Chris,
• 6:39
  you
• 6:40
  mentioned
• 6:40
  this
• 6:40
  like
• 6:40
  85%
• 6:41
  of
• 6:41
  shopping
• 6:42
  is
• 6:42
  still
• 6:42
  conducted
• 6:43
  in
• 6:44
  stores.
• 6:44
  And
• 6:45
  H
• 6:45
  and
• 6:45
  M,
• 6:45
  I
• 6:45
  think,
• 6:45
  is
• 6:46
  smartly
• 6:46
  investing
• 6:47
  here
• 6:47
  in
• 6:47
  making
• 6:47
  sure
• 6:48
  overall
• 6:49
  else
• 6:50
  that
• 6:50
  if
• 6:50
  I
• 6:51
  do
• 6:51
  want
• 6:51
  fast
• 6:52
  fashion,
• 6:52
  I
• 6:52
  can
• 6:53
  get
• 6:53
  it
• 6:53
  that
• 6:53
  same
• 6:54
  day.
• 6:54
  And
• 6:54
  that
• 6:54
  they
• 6:55
  know
• 6:55
  they're
• 6:55
  investing
• 6:56
  in
• 6:56
  things
• 6:56
  like
• 6:57
  generative
• 6:57
  AI
• 6:58
  and
• 6:58
  agentic
• 6:58
  AI
• 6:59
  so
• 6:59
  that
• 6:59
  they
• 6:59
  can
• 6:59
  quickly
• 6:59
  provide
• 7:00
  that
• 7:00
  information
• 7:00
  to
• 7:01
  me
• 7:01
  as
• 7:01
  a
• 7:01
  consumer.
• 7:02
  So
• 7:02
  if
• 7:02
  I
• 7:02
  need
• 7:02
  a
• 7:03
  tank
• 7:03
  top,
• 7:03
  I
• 7:04
  don't
• 7:04
  have
• 7:04
  to
• 7:04
  wait
• 7:04
  two
• 7:04
  weeks
• 7:04
  for
• 7:05
  it
• 7:05
  to
• 7:05
  come
• 7:05
  from
• 7:05
  Shein
• 7:06
  and
• 7:06
  Tebu.
• 7:06
  I
• 7:06
  know
• 7:06
  I
• 7:07
  can
• 7:07
  go
• 7:07
  to
• 7:07
  my
• 7:08
  local
• 7:08
  store
• 7:08
  within
• 7:09
  five
• 7:09
  miles.
• 7:09
  They
• 7:10
  have
• 7:10
  sizes
• 7:10
  small,
• 7:11
  extra
• 7:11
  small
• 7:12
  and
• 7:12
  medium.
• 7:13
  And
• 7:13
  I
• 7:13
  can
• 7:13
  choose
• 7:13
  from
• 7:14
  any
• 7:14
  of
• 7:14
  them.
• 7:14
  Like,
• 7:15
  that's
• 7:15
  what
• 7:15
  I
• 7:15
  think
• 7:15
  is
• 7:16
  really
• 7:16
  important
• 7:16
  about
• 7:16
  what
• 7:17
  H
• 7:17
  and
• 7:17
  M
• 7:17
  is
• 7:17
  doing
• 7:18
  here.
• 7:18
  And
• 7:18
  I
• 7:18
  think
• 7:18
  they
• 7:19
  deserve
• 7:19
  a
• 7:19
  little
• 7:19
  bit
• 7:19
  of
• 7:20
  credit
• 7:20
  for
• 7:20
  being
• 7:20
  like
• 7:21
  that
• 7:21
  place
• 7:22
  that
• 7:22
  confidently
• 7:23
  knows
• 7:23
  that
• 7:24
  where
• 7:24
  their
• 7:24
  products
• 7:25
  are,
• 7:25
  where
• 7:26
  their
• 7:26
  stock
• 7:26
  is,
• 7:27
  what's
• 7:27
  trending,
• 7:28
  and
• 7:28
  how
• 7:28
  they
• 7:28
  can
• 7:28
  put
• 7:29
  that
• 7:29
  at
• 7:29
  the
• 7:29
  forefront
• 7:30
  of
• 7:30
  their
• 7:30
  stores
• 7:31
  to
• 7:32
  still
• 7:32
  operate
• 7:32
  that
• 7:33
  model
• 7:33
  efficiently.
• 7:34
  I
• 7:34
  do
• 7:34
  think
• 7:34
  that
• 7:35
  there
• 7:35
  is
• 7:35
  probably
• 7:36
  some
• 7:37
  programming
• 7:37
  that
• 7:38
  needs
• 7:38
  to
• 7:38
  happen,
• 7:38
  though,
• 7:38
  to
• 7:39
  your
• 7:39
  point,
• 7:39
  Chris,
• 7:39
  where
• 7:39
  they
• 7:40
  can
• 7:40
  still
• 7:40
  stand
• 7:41
  to
• 7:41
  compete
• 7:41
  for
• 7:41
  some
• 7:42
  other
• 7:42
  items
• 7:42
  that
• 7:42
  will
• 7:43
  take
• 7:43
  a
• 7:43
  little
• 7:43
  bit
• 7:43
  longer
• 7:44
  to
• 7:44
  get
• 7:44
  to
• 7:44
  consumers.
• 7:45
  But
• 7:46
  as
• 7:46
  long
• 7:46
  as
• 7:46
  this
• 7:46
  de
• 7:46
  minimis
• 7:47
  exception
• 7:48
  is
• 7:49
  removed,
• 7:50
  like,
• 7:50
  and
• 7:50
  the
• 7:50
  products
• 7:51
  cost
• 7:51
  the
• 7:51
  same
• 7:51
  and
• 7:52
  they're
• 7:52
  still
• 7:53
  taking
• 7:53
  two
• 7:53
  weeks
• 7:53
  to
• 7:54
  come
• 7:54
  from
• 7:54
  she
• 7:54
  and
• 7:54
  her
• 7:54
  team,
• 7:55
  who.
• 7:55
  I
• 7:55
  think
• 7:55
  that
• 7:56
  this
• 7:56
  is
• 7:56
  a
• 7:56
  really
• 7:56
  smart
• 7:57
  play
• 7:57
  from
• 7:57
  H
• 7:57
  and
• 7:57
  M.
• 7:58
  But
• 7:59
  I'll
• 7:59
  give
• 7:59
  you.
• 7:59
  I'll
• 8:00
  give
• 8:00
  you
• 8:00
  the
• 8:00
  last
• 8:00
  word,
• 8:00
  Chris.
• 8:01
  Go
• 8:01
  for
• 8:01
  it.
• 8:01
  Oh,
• 8:02
  no,
• 8:02
  I
• 8:02
  don't
• 8:02
  think
• 8:02
  so.
• 8:02
  I
• 8:03
  mean,
• 8:03
  I
• 8:04
  think
• 8:04
  I
• 8:04
  agree
• 8:05
  with
• 8:05
  everything
• 8:05
  you
• 8:05
  said.
• 8:05
  I
• 8:06
  just
• 8:06
  think
• 8:06
  it
• 8:06
  feels
• 8:07
  like
• 8:07
  it's
• 8:07
  more
• 8:07
  of
• 8:07
  a
• 8:07
  stop
• 8:08
  the
• 8:08
  bleed
• 8:08
  approach.
• 8:09
  And
• 8:09
  I
• 8:09
  think
• 8:09
  even
• 8:10
  this,
• 8:10
  even
• 8:11
  the
• 8:11
  volume
• 8:11
  numbers
• 8:11
  that
• 8:11
  you're
• 8:12
  quoting
• 8:12
  in
• 8:12
  the
• 8:12
  stores,
• 8:12
  and
• 8:12
  maybe
• 8:13
  Bryson
• 8:13
  and
• 8:13
  Brooks
• 8:13
  know
• 8:13
  this
• 8:14
  better
• 8:14
  than
• 8:14
  me.
• 8:14
  I
• 8:14
  have
• 8:14
  a
• 8:15
  feeling
• 8:15
  fast
• 8:15
  fashions,
• 8:16
  you
• 8:16
  know,
• 8:17
  bleed
• 8:17
  or
• 8:17
  impact
• 8:18
  on
• 8:18
  store
• 8:18
  volume
• 8:19
  is
• 8:19
  greater
• 8:19
  than
• 8:19
  say,
• 8:20
  the
• 8:20
  online
• 8:20
  impact
• 8:21
  of,
• 8:21
  say,
• 8:21
  grocery
• 8:22
  or
• 8:22
  a
• 8:22
  comparative
• 8:23
  business
• 8:23
  too.
• 8:23
  But.
• 8:25
  But
• 8:25
  yeah,
• 8:25
  that's
• 8:25
  just
• 8:25
  my
• 8:26
  take.
• 8:26
  I
• 8:26
  think,
• 8:26
  you
• 8:26
  know,
• 8:26
  you're.
• 8:27
  I
• 8:27
  think
• 8:27
  you're
• 8:27
  dead
• 8:27
  right.
• 8:27
  It's
• 8:28
  something
• 8:28
  they
• 8:28
  have
• 8:28
  to
• 8:28
  do.
• 8:28
  But
• 8:29
  like
• 8:29
  the,
• 8:29
  the
• 8:29
  basic
• 8:30
  tea
• 8:30
  that
• 8:30
  I
• 8:30
  need
• 8:30
  right
• 8:31
  today,
• 8:31
  they're
• 8:32
  gonna
• 8:32
  always
• 8:32
  gonna
• 8:32
  keep
• 8:33
  that
• 8:33
  business.
• 8:33
  It's
• 8:33
  all
• 8:34
  the
• 8:34
  other
• 8:34
  businesses
• 8:35
  that
• 8:35
  are
• 8:35
  getting
• 8:35
  siphoned
• 8:36
  off
• 8:36
  or
• 8:36
  all
• 8:36
  the
• 8:36
  other,
• 8:37
  you
• 8:37
  know,
• 8:37
  customer
• 8:38
  interactions
• 8:38
  that
• 8:38
  are
• 8:38
  getting
• 8:38
  siphoned
• 8:39
  off
• 8:39
  over
• 8:39
  time
• 8:39
  based
• 8:40
  on
• 8:40
  the
• 8:40
  exponential
• 8:41
  growth
• 8:41
  of
• 8:41
  this.
• 8:42
  And
• 8:42
  it's
• 8:42
  not
• 8:42
  just.
• 8:43
  It's
• 8:43
  not
• 8:43
  just
• 8:44
  us.
• 8:44
  Us
• 8:45
  and
• 8:45
  de
• 8:45
  minimis
• 8:45
  either.
• 8:46
  As
• 8:46
  we
• 8:46
  learned
• 8:46
  at
• 8:46
  Shop
• 8:47
  Talk
• 8:47
  Europe.
• 8:47
  I
• 8:47
  mean,
• 8:47
  this
• 8:48
  thing
• 8:48
  is
• 8:48
  big
• 8:48
  in
• 8:49
  Europe
• 8:49
  too.
• 8:49
  Yeah.