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Ghassan Paul Yacoub, Associate Professor of Innovation and Strategy, EDHEC Business School

AI and online shopping: how Shein, Temu and others get you hooked

In recent years, several websites selling ultra-low-cost goods have appeared on the French market. Shein, Temu and AliExpress, to name but a few, are shaking up the online retail landscape. According to a study conducted by BPCE Digital & Payments, the number of payment cards recording at least one monthly transaction on a discount site increased by 20% between the first quarters of 2022 and 2023.

This is hardly surprising given that Temu’s website has millions of French visitors every month, according to data from the Federation of E-commerce and Distance-Selling (FEVAD). In mid-July 2025, low-cost platforms accounted for 22% of parcels handled by the French postal service, compared with 5% five years ago. This increase is set to continue, with the sector expected to grow by a total of 6.5% in 2025.

Of course, the rampant inflation in France in recent years partly explains this craze. But this is not the only explanation for these developments. The use of artificial intelligence (AI), which is at the heart of the business model of these platforms, helps to build consumer loyalty.

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