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Last Christmas, my partner's parents made an extremely generous offer: We'd been sleeping on a luxuriously cooling, king-size Zinus mattress whenever we visited, and they asked whether we wanted one of our own. The only thing we needed to do was pick a bed frame. Easy, right?Our first thought was to head to <a target="_blank" class="" href="https://www.businessinsider.com/ikea-cut-prices-deflation-red-sea-shipping-crisis-inflation-greedflation-2024-1">Ikea</a> and purchase our current bed frame in a bigger size, but it was out of stock, so <a target="_blank" class="" href="https://www.businessinsider.com/luxury-retail-ecommerce-online-sales-stores-wealth-the-realreal-2024-7">we turned to the internet</a>. Searching "wooden bedframe" on the furniture <a target="_blank" class="" href="https://www.businessinsider.com/wayfairs-opens-first-ever-physical-store-take-a-look-2024-6">e-commerce store Wayfair</a>, whose tagline is "every style, every home," yielded over 13,000 results. Amazon gave us a smaller but not particularly more manageable 6,000, with sponsored or "trending" bed frames that weren't in our price range — or made of wood at all — frequently front-loaded. The task was daunting.We spent hours at a time clicking between product pages and toggling between search parameters, but none of the options ever lined up. Eventually, buying a new bed frame began to feel like a part-time job that neither of us had time for. Almost a year later, we're still crowding into our old, sagging queen with two dogs and a cat.We aren't the only people feeling paralyzed by making a purchase: On the Reddit forum r/Mattress, person after person complains of the time they have spent navigating a maze of distinctions, like "cooling" and "ultracooling," "medium" and "medium firm," or "memory foam" and "hybrid." For some, the task of buying a mattress was too much: "<a target="_blank" href="https://www.reddit.com/r/Mattress/comments/194n1c5/the_mattress_industry_destroyed_me_emotionally/">The mattress industry destroyed me emotionally and spiritually</a>," one post read. "<a target="_blank" href="https://www.reddit.com/r/Mattress/comments/1chv833/this_is_ruining_my_life_just_tell_me_what_the/">This is ruining my life</a>," someone else wrote.It's not just big, life-altering purchases, either: In a recent <a target="_blank" href="https://www.accenture.com/us-en/insights/consulting/consumer-goods-cutting-through-noise">Accenture survey</a> of 19,000 consumers around the world, 74% of respondents said that they had abandoned an online shopping cart at least once in the past three months because they felt "bombarded by content, overwhelmed by choice and frustrated by the amount of effort they need to put in to making decisions." This inability to commit to a purchase was reported by people shopping for clothes (79%), flights (72%), and even snacks (70%).Barry Schwartz, a Swarthmore College psychology professor, famously called this the "<a target="_blank" class="" href="https://www.businessinsider.com/how-too-many-choices-are-screwing-us-up-2016-11">paradox of choice</a>": While having a wider variety of choices can initially make us happier, <a target="_blank" class="" href="https://www.businessinsider.com/how-the-paradox-of-choice-could-explain-why-youre-still-single-2018-2">the more options we have</a>, the harder it can be to choose the best one for us.Schwartz's 2006 book drew inspiration from <a target="_blank" href="https://faculty.washington.edu/jdb/345/345%20Articles/Iyengar%20%26%20Lepper%20(2000).pdf">a study</a> that found that shoppers in a grocery store were 10 times as likely to purchase jam after sampling from a display of six jam varieties than they were from a sampling of 24. <a target="_blank" class="" href="https://www.businessinsider.com/quit-social-media-online-shopping-30-days-regain-control-productivity-2024-7">Online shopping</a>, which the US Census Bureau estimates accounts for roughly 16% of all retail sales, theoretically makes it easier to find exactly what we are looking for. But it also takes the jam problem and multiplies it by several orders of magnitude: We're inundated with hundreds and thousands of choices. With so much information about those choices, it sometimes can feel impossible to go on. What's more, experts say that many of the tools we rely on to help us sift through all of this information — from product descriptions to search engines to e-commerce filters — may actually be making the process even harder.The golden age of comparison shopping isn't so golden after all.The internet changed not just how we shop but also the number of options retailers can offer. Superstores that used to be limited by their square footage <a target="_blank" class="" href="https://www.businessinsider.com/warehouse-nation-boom-ecommerce-jobs-2022-10">could now fill warehouses</a> with thousands of items that would ship straight to customers' doorsteps. As a result, the retail landscape began to lean toward larger stores with more options.Jason Goldberg, the chief commerce-strategy officer of Publicis Groupe, said "category killers" like PetSmart and <a target="_blank" class="" href="https://www.businessinsider.com/the-tumultuous-history-of-toys-r-us-photos-2020-8">Toys "R" Us</a> outcompeted the neighborhood mom-and-pop pet and toy stores of yesteryear — only to find themselves losing out to stores with even bigger inventories, such as <a target="_blank" class="" href="https://www.businessinsider.com/amazon-q3-earnings-shoppers-cheaper-items-high-frequency-good-business-2024-11">Amazon</a> and <a target="_blank" class="" href="https://www.businessinsider.com/walmart-stock-price-sam-walton-family-wealth-billionaires-retail-strategy-2024-10">Walmart</a>. "In the history of retail, businesses with larger assortments have come in, and they've won out over businesses with small assortments," he said.Shoppers, it turns out, love the convenience of the one-stop shop. But that has left us with an ever-increasing number of options. "Amazon's doing what we think the American dream is, which is, have all the choice in the world," Jessecae Marsh, a professor of psychology at Lehigh University, told me. "But choice can be paralyzing." Part of the problem, Marsh said, comes down to the way our brain makes choices. When shopping, we typically start by looking for ways to narrow down the set of choices, such as by filtering out things we can't afford or that aren't the size we want. Then we look for a reason to pick one of the remaining items over the others. "When we try to make decisions, we want a reason behind the decision," she said.This helps explain why ratings and <a target="_blank" class="" href="https://www.businessinsider.com/guides/insider-reviews-expertise-in-product-reviews">reviews</a> have become such a popular feature on online marketplaces: When we're comparing two similar items, we need to find a piece of information that breaks the tie. A higher star rating, or a slate of glowing reviews from other customers, can be enough to do the trick. The trouble is that having more information at our disposal isn't always helpful. And sometimes, it can render decision-making more difficult.In a <a target="_blank" href="https://cognitiveresearchjournal.springeropen.com/articles/10.1186/s41235-023-00509-7">series of experiments</a> testing how the presence of diagrams influenced people's ability to correctly answer questions about topics like managing body weight, Marsh and Samantha Kleinberg, a professor of computer science at the Stevens Institute of Technology, found that while some guiding information could be helpful, too much information made picking the right answer almost as difficult as if the participants had received no guiding information at all. While the study, published last year in Cognitive Research: Principles and Implications, didn't focus on shopping, their results suggested that the more information we wade through when we're trying to make a decision, the more likely we are to come across something that conflicts with our beliefs, which complicates the decision-making process."If you've tried an Oil of Olay moisturizer, and you had a reaction to it, but you're seeing website over website telling you that's the best one, you're now in a position where the information that you're getting doesn't match information that you hold in your own head," Marsh said. "That conflict is always going to be hard for people because they don't exactly know how to resolve it."It doesn't help that the tools we use to reduce overwhelm may actually make things even more daunting. Raluca Ursu, an associate professor of marketing at New York University's Leonard N. Stern School of Business, told me that tools like filtering, sorting, and using recommendations could bog us down by revealing new factors to investigate, which leads people to search more — and, <a target="_blank" href="https://www.jstor.org/stable/25674430">research has found</a>, be less satisfied with their choices. Search engines such as Google, which present options in a ranked list, <a target="_blank" href="https://journals.sagepub.com/doi/abs/10.1509/jmr.09.0481?journalCode=mrja">can also lead</a> to a "maximizer" mindset. "Consumers start to believe they can find 'the best option' out there, which can then lead to additional stress and decision paralysis," Ursu told me. The <a target="_blank" href="https://www.businessinsider.com/search-web-email-google-streaming-online-shopping-broken-2022-4">decline of Google Search</a> probably doesn't help matters, either.Ursu has studied two factors in shopping: <a target="_blank" href="https://www.anderson.ucla.edu/sites/default/files/document/2022-01/SearchGaps_UrsuZhangHonka_Dec2021.pdf">search costs and search fatigue</a>. "Search costs generally reflect the time and effort consumers require to obtain information about a product," she said via email. "How difficult is it to determine this TV's price and technical specifications?" While search costs are typically much smaller online than they are IRL, where you have to jump in a car and drive to a store, search fatigue grows when shopping online because there's more information available and more options to sift through. Ursu guessed that the most exhausting stage of shopping is comparison shopping — when people pore over minuscule details between products to find the best one.If people <a target="_blank" class="" href="https://www.businessinsider.com/online-shopping-coping-mechanism-target-pandemic-2021-3">abandon their shopping carts</a> because they get overwhelmed by search fatigue, it can come back to bite retailers. In a <a target="_blank" href="https://www.anderson.ucla.edu/sites/default/files/document/2022-01/SearchGaps_UrsuZhangHonka_Dec2021.pdf">study</a> that looked at browsing data from clothing shoppers in the Netherlands, Ursu and her fellow researchers Qianyun Zhang and Elisabeth Honka found that reducing search fatigue by half led to a slight increase in transactions. They also found that search fatigue tended to affect smaller retailers more than larger ones since people tend to spend all their energy shopping at larger stores first.In fashion, perhaps no company embodies the paradox of choice more than <a target="_blank" class="" href="https://www.businessinsider.com/stitch-fix-subscription-clothes-review-work-from-home-2021-9">Stitch Fix</a>, which launched in 2011 with a counterintuitive business model: People who didn't have the time or patience to shop could undergo a virtual consultation with one of the firm's in-house stylists, then receive a subscription box filled with a selection of items that had been handpicked for them. It worked: By 2017, the company had gone public at a valuation of $1.4 billion, only to surge to a $11 billion market cap in early 2021, when many customers were holed up at home."Having someone do that front-loaded effort, that seems really valuable," Marsh said. It's the same thing we would do by bringing a contractor into a house to ask, "What are the options here to expand this bathroom?" After lockdowns ended, the company decided to introduce an option where customers could shop for individual items from categories like "jeans," "Lauren Ralph Lauren," and "workwear under $80." But since that pivot away from its core business, <a target="_blank" class="" href="https://www.businessinsider.com/stitch-fix-stylists-say-role-company-is-losing-flexibility-2021-8">the company has been losing customers</a> every year. Today, <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/sfix-stock">Stitch Fix is valued at $400 million</a>, just a fraction of its market cap at its 2017 initial public offering. Goldberg, the chief commerce-strategy officer, said it's possible that the company's struggles are due to macro factors, like subscription fatigue and a sales slowdown in the clothes business. "Twenty years ago, you spent 6% of your budget on clothes; today, you spend 3% of your budget on clothes," he said. "People used to buy Stitch Fix for clothes to wear to work. You know what people don't do anymore?" Still, the company's decline raises an important point about the value of curation.Short of changing their business models, companies can make things easier on shoppers by simplifying their site designs, reducing friction during checkout, and keeping extraneous information to a minimum. Offering shoppers more personalized search results is another big piece of the puzzle, and the experts I spoke to say <a target="_blank" class="" href="https://www.businessinsider.com/how-amazon-is-using-ai-from-rufus-to-movie-recommendations-2024-7">artificial intelligence may be able to help us</a> winnow our choices down — that's the guiding idea behind <a target="_blank" class="" href="https://www.businessinsider.com/what-amazon-ai-shopping-assistant-rufus-is-like-2024-7">Rufus, a new conversational chatbot</a> from Amazon that answers questions and makes product recommendations. Of course, there's the danger AI <a target="_blank" href="https://www.businessinsider.com/ai-scam-spam-hacking-ruining-internet-chatgpt-privacy-misinformation-2023-8">will overwhelm us with spam and slop</a> first.As Marsh sees it, though, the most important thing is shoppers getting to a place where they're dealing with fewer options, even if they believe that more is better. "Whatever people think they want, they should have something a little bit less than that," she said. Marsh recommended researching a category and figuring out what product attributes matter most to you before you start shopping. She also suggested turning the decision over to <a target="_blank" class="" href="https://www.businessinsider.com/guides">a consumer guide</a>, a retailer quiz, or someone who has tried a product before you. Many people already do this with<a target="_blank" class="" href="https://www.businessinsider.com/gen-z-luxury-perfume-obsession-tiktok-fragrance-teen-boys-branding-2024-10"> beauty influencers</a>: If you have a similar skin or hair type to someone, seeing what works and what doesn't for them can help narrow down your choices.Still, deciding what to buy can be excruciating — even for people who study decision-making for a living. Recently, after an "extremely overwhelming" experience selecting a bed frame for her own house on Wayfair, Marsh said she realized she was going to need a new rug. "I started looking through the options, and I was like, 'I just can't,'" she told me. "We're going to have to go to a store. I just can't do it again."<a target="_blank" rel="" href="https://www.businessinsider.com/author/emilie-friedlander">Emilie Friedlander</a> is a journalist and editor from Brooklyn, currently based in Philadelphia. She co-hosts <a target="_blank" rel=" nofollow" href="https://theculturejournalist.substack.com/">The Culture Journalist</a>, a podcast about culture in the age of platforms.

'I just can't': Why so many consumers are sick and tired of online shopping

The internet has revolutionised our lives, offering convenience and connectivity at our fingertips. With the rapid adoption of digital payments in India, fraudsters have evolved their tactics, devising new scams to exploit the growing user base. Several <keyword id="20182215" type="General" weightage="20" keywordseo="online-scams" source="keywords">online scams</keyword> have been reported in India over the past few months, from the standard UPI refund scams to unbelievable scams such as the digital arrest scams. Here's a look at some prevalent online scams and how to protect yourself: <h2><keyword id="23629952" type="General" weightage="20" keywordseo="UPI-refund-scam" source="keywords">UPI refund scam</keyword></h2>UPI refund scam is one of the most common online scams these days. It involves a person sending the victim money and then claiming that it was accidentally sent. The scammer then asks the victim to refund the money, often using excuses such as emergency hospitalisations or other important expenses. If the victim refunds the money, the scammer then contacts their bank and reverses the initial transaction, resulting in the victim losing money. How to protect yourself from UPI refund scams: <ul><li>Do not resend the money if someone claims they have “accidentally” sent you money.</li><li>If you receive money from an unknown source, contact your bank immediately.</li><li>If someone says they have sent you money, ask them to contact their bank to get a refund.</li></ul><h2><keyword id="19939895" type="General" weightage="20" keywordseo="phishing-scams" source="keywords">Phishing scams</keyword></h2>Phishing scams have been around for a long time, but they have become more sophisticated in the digital age. Fraudsters often impersonate reputable companies, sending fake emails, messages, or even websites that look almost identical to the real ones. These messages typically contain a sense of urgency—such as a warning that your account is about to be blocked or that you've won a prize. Once you click on the link, you’re directed to a fake site that prompts you to enter your personal information, including login credentials and payment details. This data is then used to steal money or compromise your identity. How to protect yourself from phishing scams: <ul><li>Be sceptical of unexpected messages or emails, even if they seem to come from trusted sources.</li><li>Check the URLs of websites carefully. Scammers often use misspelt URLs that are designed to look legitimate.</li><li>Never share your personal or financial information without verifying the authenticity of the request.</li></ul><h2><keyword id="23629953" type="General" weightage="20" keywordseo="SIM-swap-scam" source="keywords">SIM Swap scam</keyword></h2>As the name suggests, a SIM swap scam basically involves the scammer getting access to your SIM, either with the help of someone at the mobile service provider or through other means. The scammer often convinces the network provider to activate a SIM card they possess, gaining control of the victim’s phone number. This allows the scammer to gain access to all calls and text messages that the victim may receive, which is important in this day and age where all accounts are linked to your phone number. Once the scammer gets access to the victim’s phone number, they use it to gain access to their bank account and steal money. How to protect yourself from SIM swap scam: <ul><li>If your SIM stops working, immediately inform the telecom operator.</li><li>Make use of a SIM lock, which prevents your SIM from being used on another smartphone without entering a password.</li><li>Avoid sharing personal information online, especially things which can make it easier to crack your passwords.</li><li>Keep track of your accounts and report any unauthorised transactions.</li></ul><h2><keyword id="20415709" type="General" weightage="20" keywordseo="online-shopping-scams" source="keywords">Online Shopping Scams</keyword></h2>Beware of fake online stores offering unbelievable deals. These websites might steal your payment information or deliver counterfeit or non-existent products. These websites often advertise unbelievable deals to lure in unsuspecting customers, either with the intention of stealing their data or selling substandard products. How to stay safe: <ul><li>Shop from reputable websites. Look for customer reviews and secure payment gateways.</li><li>Be cautious of prices that seem too good to be true.</li><li>Use a credit card for online purchases. It offers better fraud protection than a debit card.</li></ul><h2>The "Digital Arrest" scam</h2>In this chilling scam, fraudsters impersonate law enforcement officials. They may claim you're involved in illegal activities and threaten you with a "digital arrest" or legal action. To avoid this, they'll demand payment or personal information. Victims are often coerced into making payments via UPI or other digital means. The sense of urgency and fear of legal consequences often compels people to act without verifying the legitimacy of the claim. How to avoid: <ul><li>Know your rights: Law enforcement agencies will never demand payment or personal information over the phone or online. </li><li>Verify identities: If you receive such a call, hang up and directly contact the relevant authorities to verify the claim.</li></ul><h2><keyword id="23629954" type="General" weightage="20" keywordseo="KYC-scam" source="keywords">KYC scam</keyword></h2>With the increased demand for KYC (know your customer) updates across digital platforms, fraudsters are taking advantage by posing as bank or telecom representatives. They often claim that your account will be blocked if you don’t update your KYC details immediately. Victims are then asked to share their Aadhaar number, PAN, or other personal details via a fraudulent link or over a call. In some cases, they also ask users to complete the process through UPI apps, stealing money from their accounts during the process. How to avoid it: <ul><li>Banks and financial institutions never ask for personal details over a call, message, or link.</li><li>Always update KYC details through official channels, like the bank’s app or website.</li><li>If you receive a suspicious KYC request, report it to your bank’s customer service immediately.</li></ul>SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/waaree-energies-to-afcons-infrastructure-ipos-to-look-out-for-this-week/articleshow/114421377.cms">Waaree Energies to Afcons Infrastructure, IPOs to look out for this week</a> <a href="https://www.businessinsider.in/personal-finance/news/best-credit-cards-for-online-shopping-in-india/articleshow/114354358.cms">Best credit cards for online shopping this festive season</a> <a href="https://www.businessinsider.in/stock-market/news/bigger-they-are-harder-they-fall-a-look-at-how-the-countrys-biggest-ipos-have-fared/articleshow/114307997.cms">Bigger they are, harder they fall – A look at how the country’s biggest IPOs have fared</a>

UPI refund to digital arrest scam, here are some online scams you need to be aware of

How India's online shopping preferences differ across India​

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In the last few months, have you received a suspicious call from a stranger claiming that you have won a cash prize? Or has someone tried reaching out to you saying that a relative is in trouble and urgently needs money? If you answered yes to any of these questions, know that you are not alone. <keyword id="19895063" type="General" weightage="20" keywordseo="India" source="keywords">India</keyword> has reported a rise in scam calls in recent months and these calls seem to be increasing at a rapid rate. But not just calls, there are various other platforms that scammers try to take advantage of, to rob people of their hard-earned money. Read on to know about the top 5 <keyword id="22618205" type="General" weightage="100" keywordseo="personal-finance-scams" source="keywords">personal finance scams</keyword> that are surfacing in India and how you can stay safe from them. <h2>Fake <keyword id="20488964" type="General" weightage="20" keywordseo="job-offer" source="keywords">job offer</keyword> scams</h2>This is one of the most commonly reported scams. Over the last year, there have been many cases where people were approached for seemingly lucrative job offers via platforms like WhatsApp and Telegram. Some of these cases involved the victim making payments to certain accounts, while being made to believe that it is a part of the job and there will be a handsome return later. For instance, a PTI report in May this year revealed that a woman from Navi Mumbai found herself trapped in an online fraud and lost Rs 54 lakh. The victim wanted to earn some extra money by working from home and was reportedly offered freelance work by the scammers. She was also told that she would earn money after completing five tasks. And to receive these tasks, the woman claimed that she paid Rs 54.30 lakh in various accounts. When the woman asked for payment after completing the tasks assigned to her, the scammers stopped replying. <h2>Sweetheart scams</h2>Meeting the love of your life through an <keyword id="20167528" type="General" weightage="20" keywordseo="online-platform" source="keywords">online platform</keyword> seems too good to be true at times. And sometimes, this really is the case. Various cases have surfaced in the past where the victims were duped of their hard-earned money by their online lovers. Just last month, a man in Delhi was scammed of Rs 1.2 lakh when he planned to meet a woman he was talking to on Tinder. The two met at a cafe in Delhi to celebrate the woman’s birthday and ordered some snacks, cakes, and wine. The woman however, abruptly left in the middle of the date citing a family emergency. And the victim incurred a bill of Rs 1,21,917.70 for food that should have only cost a few thousand bucks. When he questioned the high bill, he was threatened and forced to pay. After investigating, the police found that the cafe split the high bills in a set way: 15% to the girl, 45% to the table and cafe managers, and 40% to the owners. <h2>Fake screenshots scams</h2>Another type of scam that is widely happening in the country is where you are shown a screenshot that gives the impression that your account has been credited with some money, when it actually has not. For instance, in March this year, a Delhi Uber driver was making headlines for overcharging a customer for a ride to the airport. A Moneycontrol report mentioned how a man described his experience in a Reddit thread. As per the report, the man said that he had booked a ride to the airport and the initial fare was Rs 340. However, when the ride was completed, the Uber driver showed him a screenshot which depicted that the fare was Rs 648. The driver had claimed that the fare increased due to more waiting time. However, that wasn’t the case and the driver had created a fake screenshot to demand extra money. After this post went viral, several other Reddit users reported similar incidents. <h2><keyword id="19925254" type="General" weightage="20" keywordseo="YouTube" source="keywords" meta.keywordsubtype="org" meta.entityname="YouTube" meta.hostid="261" meta.entityid="YouTube">YouTube</keyword> like and earn scam</h2>This one is similar to the completing tasks scam. In this scam, <keyword id="20013464" type="General" weightage="20" keywordseo="fraudsters" source="keywords">fraudsters</keyword> tend to tell the victim that they will have to engage with a YouTube channel to earn money. They then ask the person to make certain payments, promising a greater reward later on. Once the victim transfers the money, the fraudsters tend to disappear into thin air. In February this year, there were reports of a man losing Rs 16 lakh due to such a scam. <h2><keyword id="19957108" type="General" weightage="20" keywordseo="online-shopping" source="keywords">Online shopping</keyword> scam</h2>If you have ever shopped online, be sure to read this one. Many scamsters come up with fake advertisements on reputed platforms like Instagram to lure people into buying items online. In such scams, once the order has been placed and payment has been made, the victim doesn’t receive the products. In addition to this, scammers can also pose as bank employees and gain access to sensitive information of the victim’s account. For instance, a report by PTI last year revealed that a 70-year-old woman was buying six towels online for Rs 1,160. While making the payment, Rs 19,005 was taken from her account instead of Rs 1,160. She tried to contact the bank helpline but couldn't reach them. Soon after, she got a call from an unknown number. The caller claimed to be from the bank and offered to help with her payment problem. He asked her to download an app for the refund. The woman followed his instructions but ended up losing Rs 1 lakh from her account. When she saw the unauthorised transactions, she went to the police station. Meanwhile, another Rs 8.3 lakh was withdrawn from her account. <h2>How to stay safe from such scams</h2>Even though more and more people are being targeted by scammers, there are some ways that you can ensure that you stay safe. Keep these few points in mind in order to protect yourself against personal financial scams. <ol><li>Don’t share your personal information with strangers online or on the phone. </li><li>Don’t make any payments just because a stranger told you to. Verify the situation and the person’s credentials. </li><li>Don’t click on suspicious links that are sent to you on emails or text messages. </li><li>Avoid shopping for doubtful websites or accepting job offers from sites that appear dubious. </li><li>Before taking up any job offer, perform a thorough search of the company or the person who is claiming to recruit you. </li><li>Read up a bit about popular scams going on right now. At times, a simple Google Search can help you save up loads of money. </li></ol>

Top 5 personal finance scams in India and how to stay safe from them

<ul class="summary-list"><li>Temu was the most downloaded app by Gen Z in the US in the first 10 months of 2024.</li><li>Users aged 18 to 24 downloaded the app nearly 42 million times from January to October.</li></ul>America's Gen Z is really here for Temu.The Chinese online marketplace was the most downloaded app by Gen Zers in the first 10 months of the year. It was downloaded nearly 42 million times by this group.That's according to the app analytics firm Appfigures, which pulled data from iOS and Android users between the ages of 18 and 24. Some Gen Zers are under 18, but Appfigures excluded them from their findings, citing privacy concerns for juvenile users.The data represented in Appfigures' findings shows the number of downloads made by this demographic between January 1 and October 31 and represents US data only.The report found that TikTok came in second place for total downloads in this time period, with 33 million downloads. Meta's Threads app was downloaded 32 million times.<a target="_blank" href="https://www.businessinsider.com/temu-is-on-a-quest-to-take-over-america-2024-2">Temu</a>, which is owned by the Chinese company PDD Holdings, sells everything from home goods to motorcycle accessories, all at low costs. The app is characterized by massive discounts, with vouchers popping up while browsing.Sory Park, a project manager at Daxue Consulting, a China-focused market research firm, said Temu has effectively gamified countdowns and rewards."It has also added gamified elements including countdowns and rewards to its shopping experience, which increases user engagement and drives users to 'buy now or never,'" Park told Business Insider.<h2 id="72a51851-fc58-417c-8349-04becd1fb6b3">Affordable, accessible, personalized</h2>Temu is growing rapidly, and its <a target="_blank" href="https://www.businessinsider.com/boomers-gen-x-love-temu-chinese-shopping-app-2024-1">popularity extends well beyond Gen Z</a>.PDD Holdings reported revenue of $13.4 billion for the three months ending June 30. That's an increase of 86% from the same period the year before. In February, it <a target="_blank" href="https://www.businessinsider.com/temu-spends-millions-super-bowl-ads-effort-win-us-users-2024-2">spent millions of dollars on Super Bowl advertisements</a> to win over the US market.However, Amazon — which was downloaded 15 million times this year by Gen Zers in the US, per Appfigures — still has a hold on the online shopping market.Amazon made $61.4 billion from online sales in the three months ending September 30, a 7% increase from the same period last year.On November 13, Amazon launched its Temu-rival discount store, Amazon Haul, in which all products are priced at $20 or less.Jim Whaley, the CEO of the New York-based market research firm OvationMR, said Temu is popular with Gen Z because it provides a shopping experience that's affordable, accessible, and personalized."Gen Z values a highly curated shopping experience that delivers both variety and convenience at accessible price points," Whaley said.Gloria Gan, a lifestyle analyst at the UK-based market research firm Mintel, said Temu is making inroads with Gen Z because of the generation's "tech-savviness and frequent online shopping habits."Gan said that while Amazon has a dominant market position, Temu is also a force to be reckoned with, thanks to its efficient online service and value-for-money offers.In response to BI's query, a Temu spokesperson told BI the company has "strived to make a positive impact on people's daily lives by offering a broad selection of quality products at affordable prices."Amazon did not respond to a request for comment.

The app data has spoken, and Gen Z's love for Temu is real

Julia Dovgal has always loved smelling good. As a child, she would douse herself in her mother's Chanel or Dior scents before going to school or meeting friends. For her birthday in 2017, she received her first "luxury" fragrance: Jo Malone's $165 bottle of Wood Sage and Sea Salt. The 29-year-old's collection has since grown to over 200 bottles.At first, Dovgal was into <a target="_blank" class="" href="https://www.businessinsider.com/best-perfumes-scents-everyone-should-buy-former-ulta-fragrance-consultant">designer fragrances</a> like the ones her mother owned. "Then I discovered niche perfumery," she tells me. She's constantly on the hunt for perfumes with notes of vanilla and sandalwood. Dovgal says she spends about $600 a month on her collection, which she reviews on TikTok. "I want to have them all," she says.Now a full-time content creator, Dovgal is far from the only young person driving a perfume renaissance. The market-research firm Circana says sales of luxury fragrance brands in the US grew by double digits in 2023. From 2021 to 2023, the size of the so-called prestige fragrance market increased by nearly $2 billion, to $8.3 billion, prompting a flood of new scents and brands.Behind the booming appetite for new smells is Gen Z. The generation has graduated from <a target="_blank" class="" href="https://www.businessinsider.com/victorias-secret-using-gen-z-nostalgia-to-become-relevant-2024-10">Victoria's Secret</a> body mists and is desperate for something fancier. Circana found in 2023 that 83% of Gen Zers said they used fragrance, compared with 79% of Gen Xers and 69% of boomers. It's not just the women either: A recent survey on consumer spending by the investment bank Piper Sandler found that <a target="_blank" class="" href="https://www.businessinsider.com/status-symbols-for-men-list-examples-2024-7">fragrance spending among teen boys </a>had increased by 26% since the spring of 2023. Longtime favorites — Axe, Old Spice, and Bath &amp; Body Works — have been replaced by brands like Valentino and Jean Paul Gaultier. The boys' locker room today smells less like a boys' locker room and more like the sales floor of Saks.<a target="_blank" class="" href="https://www.businessinsider.com/perfume-buying-tips-mistakes-from-frequent-shopper-collector">Perfume</a> is no longer an afterthought sprayed on while running out the door; it's part of <a target="_blank" class="" href="https://www.businessinsider.com/gen-z-business-startups-entrepreneurship-digital-era-branding-social-media-2024-3">Gen Z's personal brand</a>. "Clean girls" might be wearing Maison Margiela's Replica Bubble Bath, a "quiet luxury" queen might give off the rich floral scent of Maison Francis Kurkdjian's Baccarat Rouge 540, while a "coastal grandmother" might douse herself in the woody notes of Byredo's Gypsy Water. Instead of picking one signature scent, young people are increasingly cycling through aesthetics. For Gen Z, it's all about the scent wardrobe.When e-commerce took off, the perfume industry smelled trouble. How are people supposed to know what scent they're buying if they can't spritz it through their screen? For a long time the industry tried to avoid online shopping, prioritizing classic scents and in-store sales. But when everything moved online during the pandemic in 2020, <a target="_blank" href="https://www.voguebusiness.com/beauty/fragrance-the-shift-to-digital">US fragrance sales dropped by 21%</a>. Marketers used increasingly complex descriptions and illustrations of scents, but it was still an uphill battle.Around 2022, TikTok changed the game. Creators on #PerfumeTok touted their favorite scents, painting a picture for their followers of what they smelled like. <a target="_blank" class="" href="https://www.businessinsider.com/glossier-you-perfume-viral-tiktok-genz-millennial-saved-brand-2024-6">Viral posts have caused fragrances to sell out</a>. Phlur said its Missing Person fragrance — the subject of TikTok videos with more than 50 million views — sold out within hours of its launch and amassed a 200,000-person waiting list. Curious about what it smells like? "You know when you're cuddling with someone that you really love, and you're, like, nuzzled up in their chest and you look up at them?" one creator said in a <a target="_blank" href="https://www.tiktok.com/@christina.calcote/video/7074014008629841198?lang=en">clip</a> that's been viewed 1.7 million times. "It smells like that." Circana found that 45% of people who bought perfume in 2022 said that TikTok influenced them. Instead of buying a scent based on smell, young people have started making purchases based on <a target="_blank" class="" href="https://www.businessinsider.com/influencer-marketing-is-booming-as-brands-take-creators-more-seriously-2024-7">influencer recommendations</a>. "This is the type of fragrance for when you need to impress for a first date or a special-occasion event," Dovgal says in one of her most viewed TikToks. Under the handle @juliaperfumery, she shares perfume reviews for her primarily Gen Z audience against the backdrop of her New York City apartment's perfume closet. Each month she'll choose five or six fragrances to rotate through. "Perfume depends on the season and on the weather," she tells me. At the moment, her favorite brand is Juliette Has a Gun — she has almost all of the French label's fragrances.To address the issue inherent in <a target="_blank" class="" href="https://www.businessinsider.com/best-scents-fragrances-to-wear-in-fall-from-perfumers-2024-10">online perfume reviews</a> — people can't smell through the screen — PerfumeTok creators got creative. Their posts are often miniature personal essays designed to evoke emotions and memories."I have to communicate with your other senses to try and paint a picture of this fragrance for you," says Emelia O'Toole, who posts to her nearly 400,000 followers on TikTok under the handle @professorperfume. "We really lean into these dramatic, often long-winded descriptions of perfumes because it's what sets the scene. We have to put an image in your head instead of a smell." A viewer may not know what rose, lychee, and oud smell like, but they can imagine what an elegant woman in a long evening dress out on an evening in New York might, she says. "There's been a shift from classical perfume terminology to a more creative way of communicating with the senses," O'Toole adds.Part of the shift is a growing interest in wearing scents that fit a specific aesthetic, mood, or brand. "If there's one thing Gen Z loves, it's a name for something," O'Toole says. Niche identities based on beauty fads have blossomed, especially on TikTok. If you're a <a target="_blank" href="https://www.tiktok.com/@marysherb/video/7266129751486598406?lang=en">tomato girl</a>, you probably have a bright rosy shade on your lips and cheeks to emulate a Mediterranean sunburn. <a target="_blank" href="https://www.tiktok.com/@itsitorri/video/7341746974216965419?lang=en&amp;q=vanilla%20girl&amp;t=1728926747169">Vanilla girls</a> have glowy skin and smell of expensive hand cream. A <a target="_blank" href="https://www.tiktok.com/@isabellrrose/video/7325120662979300651?lang=en&amp;q=mob%20wife&amp;t=1728926764427">mob wife</a>, on the other hand, dons a fur coat while sporting dark eyeliner. "We've gone in a circle, from wanting to move away from labels to wanting to hyperspecifically label everything," O'Toole says.This has encouraged what she calls a scent wardrobe. Years ago, someone's perfume collection may have included a day scent and a night scent, or perhaps a summer scent and winter scent. Now there's a scent for every occasion, mood, and scenario. There are <a target="_blank" href="https://www.tiktok.com/@thenoelthomas/video/7407554605111889195">back-to-school</a> scents, scents to <a target="_blank" href="https://www.tiktok.com/@dinasshops/video/7387888204533239073">win your ex back</a>, scents to smell like <a target="_blank" href="https://www.tiktok.com/@characterperfumes/video/7219699790706265370?lang=en">Vanessa Paradis in Paris in the '90s</a> — the list goes on. While not every Gen Zer can boast a collection of hundreds of perfumes, there is an evident appetite for more. Piper Sandler's survey found that fragrance spending among teens had grown by 25% since last year.Cathrine Jansson-Boyd, a professor of consumer psychology at Anglia Ruskin University in the UK, connects the shift away from a signature scent with a weakening sense of identity. "The more time you spend online, the more you want to change how you represent yourself," she says. "You never really establish a proper sense of self." She also pointed to mass-consumption culture — the increasing ease and convenience of buying an exponentially growing number of cheap products — as a contributing factor. The <a target="_blank" class="" href="https://www.businessinsider.com/shein-temu-could-get-more-expensive-genz-customers-trade-wars-2024-10">fast-fashion retailer Shein</a>, whose clothing prices rarely top $50, is <a target="_blank" href="https://www.emarketer.com/content/shein-temu-win-over-gen-z-shoppers">incredibly popular with Gen Zers</a>, for instance. "With all these choices in terms of consumption, you don't get this full, internalized anchoring of who you are," Jansson-Boyd says. It's all about who Gen Z wants to be.That could be why certain companies have taken off recently. <a target="_blank" class="" href="https://www.businessinsider.com/renting-clothes-pros-cons-what-its-like-using-nuuly-2023-1">Nuuly, a clothing-rental subscription service</a> launched in 2019 by Urban Outfitters, allows young people to cycle through new clothes each month and try out different styles without too much of a commitment. Last year the brand reached profitability, and this year it said in the second quarter that its "average active subscribers" had grown by 50% year over year.For O'Toole, experimenting with aesthetics is part of the fun. "I think that's one of the most beautiful parts about wearing a fragrance," she tells me. "You can say, 'Who do I feel like being today?' and just spray that on."For a long time, perfume was used <a target="_blank" class="" href="https://www.businessinsider.com/quiet-status-symbols-popular-this-year-2024-1">to communicate status and wealth</a>. For many, it was a form of affordable affluence — a way to secure their status even when the economy was bad. You may not be spritzing it from your château in the Riviera, but with <a target="_blank" class="" href="https://www.businessinsider.com/met-gala-nicole-kidman-chanel-commercial-dress-karl-lagerfeld-2023-5">Chanel No. 5</a> you could at least smell like Marilyn Monroe, Catherine Deneuve, or Nicole Kidman. For Gen Z, however, the most coveted scent isn't always the most expensive one.With the emergence of niche independent perfumers and the increasing availability of affordable fragrances, signaling status is not just about having the money to splurge on designer fragrances — it's about being in the know. While most will recognize Chanel No. 5 on the street, only a few can put their finger on the notes of cardamom, fig, and black tea of BDK's Gris Charnel. A niche scent affords wearers an opportunity to stand out from the crowd while signaling that they have good taste — an inescapable paradox that Jansson-Boyd describes as part of being human. Who exactly you choose to signal to depends on your priorities: Out at a bar, you might sniff out <a target="_blank" href="https://www.tiktok.com/@scoutdixonwest/video/7290642013110947118?lang=en">a fellow horse girl</a> or someone with <a target="_blank" href="https://www.tiktok.com/@hllywoodforever/video/7403371630489062698">rockstar-girlfriend energy</a> and experience a fleeting moment of connection.For Gen Z, it's not enough for a fragrance to smell good — it has to make them feel something. By its very nature, perfume taps into this idea. The power of scent on our emotions can be traced back to ancient times; <a target="_blank" href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3794443/">research suggests</a> smells evoke emotions that can help <a target="_blank" href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5198031/">reduce stress and depression</a>. Amid a <a target="_blank" class="" href="https://www.businessinsider.com/rich-people-obsessed-longevity-luxury-hotels-iv-drips-mri-scans-2024-10">booming wellness industrial complex</a>, fragrances are increasingly being marketed as self-care tools. Take Bella Hadid's Orebella fragrances, which incorporate "aura enhancing" essential oils, for instance. Or Gabar, the London-based brand that says its mission is "to encourage ideas of self-expansion and self-awareness through scent and everyday rituals.""Nowadays people are looking beyond wholly utilitarian concepts and are looking to their beauty products and rituals to cultivate a sense of intentionality in their lives," says Susan Wai Hnin, Gabar's chief operating officer and global director. "This convergence of the worlds of beauty and wellness have resulted in the rise in popularity of mood-boosting products — people are looking to feel something when they use their products."The wellness angle — as opposed to the old-school sex-appeal marketing, which has <a target="_blank" href="https://www.latimes.com/california/story/2023-08-03/young-adults-less-sex-gen-z-millennials-generations-parents-grandparents">fallen out of favor</a> with the "puriteen" generation — is <a target="_blank" href="https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/the-trends-defining-the-1-point-8-trillion-dollar-global-wellness-market-in-2024?cid=other-eml-mtg-mip-mck&amp;hlkid=54f51c678f164e64b81b88f2b4f5146a&amp;hctky=1926&amp;hdpid=a91cc4a1-cb5d-48e8-9020-050490cd48c6">especially appealing to younger consumers</a>. Through a more holistic approach, fragrance is firmly embedding itself in <a target="_blank" class="" href="https://www.businessinsider.com/gen-z-loves-gym-weightlifting-workout-fitness-trends-planet-fitness-2024-8">Gen Zers' daily wellness routines</a>.If their perfume isn't getting them <a target="_blank" href="https://www.tiktok.com/@karinawaldron/video/7348967227967769861">chased down the street</a>, lifting their mood, and signaling a unique-but-not-too-unique aesthetic, Gen Zers will turn their noses up.<a target="_blank" rel="" href="https://www.businessinsider.com/author/eve-upton-clark">Eve Upton-Clark</a> is a features writer covering culture and society.

Gen Z's latest obsession: smelling good

The state of America's pharmacies is, in a word, bleak.Pharmacies should, in theory, be a reliable business. Seven in 10 Americans take some sort of prescription medication, creating a huge stream of potential revenue: Pharmaceutical expenditures in the US <a target="_blank" href="https://academic.oup.com/ajhp/article-abstract/81/14/583/7657643">hit $722.5 billion in 2023</a>. What's more, many pharmacies serve as a convenient destination for all sorts of essentials, from aspirin to mascara. They are, in a sense, one of the last places where Americans go to shop in person on a regular basis.Despite these advantages, even pharmacy megachains are struggling to survive in the current environment. Last week, Walgreens <a target="_blank" href="https://www.businessinsider.com/walgreens-pharmacy-closing-1200-stores-turnaround-effort-2024-10">announced</a> it would be closing 1,200 stores over the next three years, saying that some 25% of its outlets weren't profitable. Its rival CVS, which has shuttered hundreds of stores over the past few years, announced this month that it planned to shed nearly 3,000 jobs to cut costs. Rite Aid, meanwhile, closed a slew of stores after <a target="_blank" href="https://www.businessinsider.com/rite-aid-bankruptcy-new-jersey-store-closures-2023-10">filing for Chapter 11 bankruptcy protection</a> in late 2023.Even in pharmacies that remain open, there's often next to nothing inside the store. Many items on the shelves are <a target="_blank" href="https://www.businessinsider.com/walmart-walgreens-cvs-lock-merchandise-to-deter-theft-frustrates-shoppers-2022-12">locked up</a>, and good luck finding an employee to help you free the jailed deodorant or shampoo, given how <a target="_blank" href="https://www.businessinsider.com/cvs-ohio-fine-understaffing-pharmacy-prescription-backlog-inspection-medicine-2024-2">woefully understaffed</a> many pharmacies are. The demise of pharmacies is also part of the "<a target="_blank" href="https://www.businessinsider.com/retail-apocalypse-helped-spark-a-rapid-descent-into-dystopia-2021-3">retail apocalypse</a>," which has <a target="_blank" href="https://www.businessinsider.com/bank-financing-urban-planning-pandemic-retail-apocalypse-vacant-storefront-2023-10">intensified since the onset of the pandemic</a>. The convenience chain 7-Eleven just announced it's closing hundreds of stores nationwide. What started as a consequence of COVID-19 lockdowns feels like it's becoming a permanent feature of America's retail landscape. If you want a nearby place to pop into and grab a bag of chips or a bottle of NyQuil, you may be out of luck.For pharmacies, the reckoning has been triggered by a confluence of trends, from the shift to online shopping to the convoluted way Americans pay for healthcare. For a while, the pandemic actually helped pharmacies paper over some of their deeper problems — all those vaccines and home-test kits brought in a lot of business. But now, the underlying issues are proving impossible to avoid. "None of these things is a new factor," Elizabeth Anderson, a senior managing director and healthcare-equity research analyst at Evercore ISI, told me. "But you compound that for years and years and years, and eventually you get to kind of a breaking point."Big chains like Walgreens and CVS make their money in two main ways: selling prescriptions in the back of their stores and selling everyday goods out front. The problem for companies is that both sides of the business are under pressure from outside forces.First, there's the rise of e-commerce. In the age of Amazon, people can buy toilet paper and ibuprofen and greeting cards and snacks online and have them delivered right to their door, often at lower prices. Not to mention no hunting around for an associate to open a glass case. (Amazon <a target="_blank" href="https://www.axios.com/2024/08/02/amazon-drug-store-thefts-online-customer-boost">has actually said</a> the lousy experience at brick-and-mortar pharmacies has been a boost to its business.) On the retail level, pharmacies are also competing with big-box stores like Walmart or Target, as well as cheaper options like Dollar General, which has been working to win over budget-conscious consumers. The more expensive and less convenient pharmacies become, the more customers defect.Chain pharmacies are competing with not just their rivals for retail dollars — but also themselves. As Walgreens and CVS stores have proliferated over the past decade or so, many of their locations are basically right on top of each other. It's tough to make a store profitable when there's an identical one two blocks away."Walgreens and CVS have been on a massive expansionary push," Neil Saunders, a managing director at the retail consultancy GlobalData, said. "They've just opened stores willy-nilly, and they've ended up with portfolios that are too big. There's too much overlap."On the other end of the business, pharmacies are expensive to run. Renting the physical space and paying an educated workforce of pharmacists mean that the fixed costs are high. There's not a ton of room for cutting corners, except for downsizing the workforce, which makes the customer experience worse. The pharmacy end of the business is also under pressure from mail-order operations and from grocery stores and big-box chains like Walmart, which have added pharmacies in some of their locations. Beyond costs and competition, revenues at the big chains are being further squeezed by pharmacy benefit managers, who serve as the industry's middlemen. Pharmacies order drugs directly from manufacturers, dispense them to a patient, and are then reimbursed by the PBMs on behalf of the patient's insurer. But PBMs have been lowering the rates at which pharmacies are paid for handing out prescriptions — generally their top source of revenue. Sometimes the reimbursements are actually lower than the cost of acquiring the drug — which <a target="_blank" href="https://ncpa.org/newsroom/qam/2023/11/01/local-pharmacies-say-theyre-struggling-afford-glp-1s">pharmacies say</a> is happening with GLP-1s like Ozempic and Wegovy."The simple part is that prescriptions are not profitable," said Douglas Hoey, the CEO of the National Community Pharmacists Association, which represents independent pharmacies. PBMs, he said, are the "judge, jury, and executioner" on who gets paid what, and pharmacies from Walgreens to the little shop down the street don't have much power to push back. "The pharmacy really doesn't have any negotiating leverage because the PBM says, 'Well, pharmacy, if you don't give me everything I ask for, then I'm going to not allow patients to get their drug benefit at your pharmacy," he added.The larger chains should, in theory, be able to weather the storm better than smaller shops. After all, they've got the scale and leverage a mom-and-pop operation lacks. But even with their market dominance, they're no match for the PBMs. A decade ago, Walgreens tried to push back against Express Scripts, a major PBM, in an attempt to earn more from prescriptions. Walgreens ultimately gave in, <a target="_blank" href="https://www.nytimes.com/2012/07/20/business/walgreen-and-express-scripts-settle-their-dispute.html">losing an estimated $4 billion in the battle</a>. (CVS has a leg up in this area because it owns Caremark, one of the big three PBMs.)As pharmacies falter in the back of the store, they create a negative feedback loop in the front. Walgreens was never the best place to get many staples, given the high prices and limited selection, but customers could be counted on to grab a few items as they walked down the aisles to pick up their prescriptions. Now that more and more patients are getting their medications by mail or at the grocery store, the retail end has dried up. Pharmacies "were never designed to be an appealing place to go and get toilet paper," said Jason Goldberg, the chief commerce-strategy officer at Publicis Groupe, a global marketing firm. "Toilet paper was a profitable item to sell to someone that came in for a Lipitor prescription," he added.Walgreens did not respond to a request for comment. But a spokesperson for CVS told me that the company was in a "better place now" than it was a few years ago. The decision to shutter stores was made back in 2021, they said, based on factors like "population shifts, consumer buying patterns, and a community's store density." Even after the "realignment" is finished, the spokesperson added, 85% of Americans will still live within 10 miles of a CVS pharmacy.As more and more pharmacies close their doors, Americans ultimately have fewer places to shop in person. One of the reasons for the decline of pharmacies, in fact, is how badly they've handled the retail end of their operations. For starters, faceless chains supplanting independent pharmacies diminished the loyalty customers felt for their local stores. In a mom-and-pop location, you could develop a relationship with the pharmacist, get trusted counseling, and have a pleasant conversation about how your kid's soccer team is faring. In the current landscape of commoditized pharmacies, there's no such thing as personalized service. Waits to pick up prescriptions are long, customer service is often subpar, and if you do have a problem, places are often so understaffed they can't help even if they want to. The pharmacy experience, to put it plainly, often sucks. In many places, there's no longer such a thing as a quick, easy run to a Duane Reade. Whether you believe <a target="_blank" href="https://www.businessinsider.com/why-we-dont-actually-know-whether-retail-theft-big-problem-2024-3">retail theft</a> is as big a problem as some executives say it is, a lot of items are now locked away, which eats into sales and leads customers to shop elsewhere. Brian Tanquilut, a healthcare-services-equity research analyst at Jefferies, said pharmacies were also narrowing their stock-keeping-unit counts — basically, the number of items they keep in stock — to better manage cash flows and inventories, but the move means there are fewer options for customers. I've often found myself frustrated by all the empty shelves at my local pharmacy, and I know a lot of people who feel the same way. From a consumer standpoint, it starts to feel like, what's even the point?Pharmacies don't need to lose 50% of their retail traffic for it to be a disaster, Goldberg told me. Just 10% is enough. And things can go into a tailspin, fast. "You get 10% less traffic, so you sell a little less stuff, so you staff one less person," Goldberg said. "So you make a few more customers dissatisfied."Other convenience chains are also struggling to hang on to their customers. People aren't popping into 7-Elevens as often as they used to — in part because they aren't commuting to and from work as often, and in part because they aren't smoking as much and don't need to grab a pack of cigarettes. (Healthier habits, apparently, are bad for business.) What's more, price-conscious consumers are now going out of their way to seek out lower prices, stopping by the local dollar store for some cut-rate options."Things are very cyclical in retail, and you see the rise and fall of a lot of formats and chains," Saunders, the retail consultant, said. "There was a period when the drugstores were on the ascendancy, and the independent chains were really on a downward curve. Now what we are seeing is drugstores having gone past their peak, and now they're in a very difficult spot."With Walgreens closing stores, Saunders was blunt about the company's future. "They have got to set out a pathway to growth, both to convince investors and to stabilize the business," he said. "I'm not sure that they have done that convincingly yet. They are very focused on managing the decline in the business, trying to change the business structurally and in organizational terms, but they haven't really set out a proposition, especially for how they win in retail."It seems strange to mourn the demise of corporate giants like Walgreens and 7-Eleven. These, after all, are the very corporations that helped decimate local businesses, from the friendly neighborhood pharmacy to the five-and-dime. But their passing feels like it marks yet another transitional moment in American culture, as the entire concept of "running out to the store for a minute" goes the way of music on MTV and the landline. What does it mean to have so few places left to grab the things we need? What will we become of us when every last transaction, from our Slurpees to our statins, is handled electronically?At a minimum, the struggles of pharmacies like Walgreens mean that more Americans will now have no place to fill their prescriptions within striking distance of their homes. An estimated 15.8 million people — about 4.7% of the population — <a target="_blank" href="https://academic.oup.com/healthaffairsscholar/article/2/4/qxae035/7630415#google_vignette">already live in pharmacy deserts</a>. Some pharmacies are <a target="_blank" href="https://www.washingtonpost.com/business/2023/10/22/drugstore-close-pharmacy-deserts/">shuttering</a> in communities of color and moving to whiter areas. And rural communities, which often have only a single pharmacy in town, could be hit especially hard by the widespread closings."You're talking about closing a store that not only is important for a community for their prescriptions, but they can pick up other supplies at that store," Nick Fabrizio, a senior health-policy lecturer at Cornell University, said. "If it's gone, now they're driving 20 miles or 30 miles to find another option."For the pharmaceutical industry, there are no obvious fixes. Steven Anderson, the CEO of the National Association of Chain Drug Stores, said there's an "urgent need" for congressional action on PBMs, which are already under scrutiny by <a target="_blank" href="https://www.ftc.gov/news-events/news/press-releases/2024/09/ftc-sues-prescription-drug-middlemen-artificially-inflating-insulin-drug-prices">government regulators</a>. But competitors like Amazon aren't going anywhere, and <a target="_blank" href="http://Walgreens.com">Walgreens.com</a> isn't exactly an online behemoth. "It's really a multifactorial problem that I don't see getting better anytime soon," Fabrizio said. And as pharmacies and other quick-stop stores continue to close their doors, we may look back one day in the not-too-distant future and realize we were living through the golden age of convenience, when getting whatever you needed was always right around the corner.<a target="_blank" href="https://www.businessinsider.com/author/emily-stewart">Emily Stewart</a> is a senior correspondent at Business Insider, writing about business and the economy.

The end of convenience: What the downfall of Walgreens means for America

<ul class="summary-list"><li><a target="_blank" href="https://www.businessinsider.com/homegoods-treasure-hunt-shopping-experience-photos-2018-7">HomeGoods</a> is shutting down its online store.</li><li>In an email to customers Wednesday, HomeGoods said its e-commerce site would close after October 21.</li></ul>HomeGoods is shutting down its online store.The discount home decor chain, which is owned by <a target="_blank" href="https://www.businessinsider.com/tj-maxx-adjusts-homegoods-assortment-bed-bath-and-beyond-shoppers-2023-5">TJX Companies</a>, sent an email to customers Wednesday announcing that it would stop offering online shopping after October 21."We've made the decision to focus our resources on our brick-and-mortar stores," the email message said, while adding that it would be announcing "<a target="_blank" href="https://www.businessinsider.com/burlington-ross-tjx-opening-more-stores-off-price-discounts-rivals-2023-3">many new store openings</a>."HomeGoods sells <a target="_blank" href="https://www.businessinsider.com/how-tj-maxx-keeps-its-prices-so-low-2023-3">off-price furniture, lamps, art,</a> and other decor. It's well known for the treasure-hunt experience of its stores.<div type="image" title="a screenshot of an email sent from HomeGoods announcing ecommerce shutdown" height="1626" width="1354" msid="104536235" hostid="261" sizebytes="76406"></div>TJX reported in August that <a target="_blank" href="https://www.businessinsider.com/tj-maxx-shein-temu-ecommerce-advantage-competition-2023-6">net sales from e-commerce</a> were less than 2% of total sales in its most recent quarter."As to e-commerce, overall, it remains a very small percentage of our business," TJX chief financial officer John Joseph Klinger said in an August earnings call. "We continue to add new merchandise to our sites so that shoppers can see something new every time they visit."The high cost to ship chairs and lamps to customers could have been part of the company's decision to shut down HomeGoods.com.A TJX customer service representative confirmed the change and said it would only affect HomeGoods' site. After October 21, customers could use HomeGoods gift cards and merchandise credit at other TJX-owned stores and sites, the representative said. TJX also owns <a target="_blank" href="https://www.businessinsider.com/photos-how-uk-tk-maxx-stores-compare-tj-maxx-tjx-2023-1">TJ Maxx</a>, Marshalls, Home Sense, and Sierra.TJX Companies did not respond to Insider's request for comment.HomeGoods launched its long-awaited e-commerce site in September 2021. Part of the company's initial hesitation came from the business model — offering low prices and the bargain-hunting thrill that only comes from physical retail, RetailDive <a target="_blank" href="https://www.retaildive.com/news/homegoods-launches-e-commerce-arm/607278/">reported</a>.Klinger said in the August earnings call that TJX planned to open about 125 new stores in fiscal 2024. TJX's second quarter net sales were $12.8 billion, an 8% increase compared to the same quarter last year. Some shoppers are taking to social media to share their disappointment over the HomeGoods website closing.One X user posted, "@HomeGoods this is devastating. "Another shopper posted to the brand's Facebook page: "I just received the email that you are shutting down online shopping later this week. I'm here to tell you that I'll be canceling my card and won't be traveling over 40 miles to your nearest store (which is small and picked over anyway)."If you are a HomeGoods or T.J. Maxx employee and would like to share your experience, please email this reporter at jortakales@insider.com or text (646) 768-4742 using the Signal app.

HomeGoods is abruptly shutting down its online shopping site

<ul class="summary-list"><li>Nike is the latest retailer to change its CEO.</li><li>More retail bosses have walked the plank post-pandemic, with boards demanding better performance.</li></ul>John Donahoe is the latest retail CEO to hit the chopping block.<a target="_blank" class="" href="https://www.businessinsider.com/nike-new-ceo-elliott-hill-may-help-ailing-sneaker-brand-2024-9">The Nike boss </a><a target="_blank" href="https://www.businessinsider.com/nike-new-ceo-elliott-hill-may-help-ailing-sneaker-brand-2024-9">is stepping down next month</a> and will be replaced by <a target="_blank" class="" href="https://www.businessinsider.com/nikes-new-ceo-started-from-bottom-as-an-intern-2024-9">Elliott Hill, </a>who started in 1988 as an intern and worked his way up the ranks before retiring in 2020.Analysts say Donahoe's departure was somewhat inevitable after <a target="_blank" class="" href="https://www.businessinsider.com/nikes-sales-to-fall-this-year-as-turnaround-plan-continues-2024-6">Nike's long period of decline</a> and underperformance."Under his tenure, Nike made a number of mistakes which have weakened the brand — a shakeup was required to try and draw a line under a period of very bad performance and to demonstrate that serious changes are underway," Neil Saunders, managing director of GlobalData Retail wrote in a note on Thursday.<div type="image" title="Nike CEO John Donahoe in front of pattern of Nike sneakers and logo 4x3" height="1750" width="2333" msid="113526660" hostid="261" sizebytes="268684"></div>Investors are already signaling confidence in the new hire and change of direction, with shares up in premarket trading.But as Saunders points out, sending a signal to the market is one thing, but convincing consumers is another. "A change of jockey does not automatically put the Nike horse out in front," he said.Though Donahoe has been criticized for lack of product innovation and uninspiring marketing — two key elements that have been at the heart of Nike's success — the reality is being a retail boss right now is pretty tough.<h2 id="fbd6a07f-f1bd-4bd2-a6f4-24bdb163e5ed">Belt-tightening</h2>The <a target="_blank" class="" href="https://www.businessinsider.com/consumer-spending-decline-how-retailers-respond-inflation-prices-walmart-costco-2024-6">era of post-pandemic indulgent spending</a> is over.Retail sales rose by just 0.1% in August, slowing from a 1.1% increase in July as some shoppers are becoming more cost-conscious and selective with their purchases.This is creating a more challenging environment for retailers. Some chains, including <a target="_blank" class="" href="https://www.businessinsider.com/stores-cutting-prices-summer-list-walmart-target-amazon-aldi-walgreens-2024-6">Walmart and Target, have started cutting prices</a> to offer more value for consumers.Others are finding <a target="_blank" class="" href="https://www.businessinsider.com/chipotle-boy-bowl-promo-vest-wearing-finance-bros-2024-6">creative ways </a>to get more customers through the door.Retail CEOs are tasked with navigating these choppy and unpredictable waters. And increasingly, boards seem to be rethinking whether their head honchos are up to the job.The past year or so has seen an <a target="_blank" class="" href="https://www.businessinsider.com/retail-ceos-leaving-stepping-down-trend-explained-2023-1">exodus of CEOs</a> from companies such as Gap, Bed Bath &amp; Beyond, and Adidas. According to data from outplacing firm Challenger, Gray &amp; Christmas, CEO turnover in retail more than doubled in 2023 and was at the highest level since 2019.Experts say this unusual amount of turnover is closely connected to the pandemic, which upended retail. Shoppers stayed at home and out of stores, online shopping soared, supply chains fell into chaos, and stimulus checks boosted demand, making it almost impossible to gauge a business's performance.But as restrictions eased and the protective shield of the pandemic lifted, CEOs became more vulnerable as boards questioned whether these were the right people to lead these businesses into the next stage.<h2 id="a6341e0c-46e4-4c74-bb47-d055a63438f5">Watch out CEOs</h2>This pattern has continued in 2024.Last month,<a target="_blank" class="" href="https://www.businessinsider.com/starbucks-ceo-steps-down-replaced-by-chipotle-chief-2024-8"> Starbucks CEO Laxman Narasimham stepped down</a> after about 17 months in the job. His tenure was tainted by public criticism from longtime CEO Howard Schultz, falling sales, and pressure from activist investors.<div type="image" title="Laxman Narasimhan" height="583" width="1200" msid="113526664" hostid="261" sizebytes="96900"></div>That same month, Nestle's CEO was ousted after eight years in the job. One insider told Reuters that the board had become concerned about sales growth and slowing product development."There is a fresh lack of patience at the board level," Jim Rossman, global head of shareholder advisory at Barclays, told the news agency."With the COVID-19 pandemic behind us and some stronger economic data, there is plenty to judge a CEO's management abilities by and if they aren't performing they are out," he added.

It's a tough time in retail — and CEO heads keep rolling

<ul class="summary-list"><li>Lululemon saw a 34% increase in revenue from China but sluggish growth in the US and Canada.</li><li>The company recently faced backlash for new "Breezethrough" leggings' poor design.</li></ul>While Lululemon's growth slows in North America, sales are picking up in China.On Wednesday, Lululemon reported a 34% year-over-year jump in second-quarter revenue for Mainland China, to $314.2 million, with a 21% increase in same-store sales. China made up 13% of the company's total revenue, compared with 11% in the same quarter of the previous year. The athleisure powerhouse opened five new stores in China in the quarter.The company had 127 stores in China at the start of the year and 438 stores in the US and Canada, per its annual report.In contrast, Lululemon reported sluggish performance in North America, with net revenue rising just 1%, to $1.7 billion. The region's share of the company's total revenue fell to 73%, from 78% a year ago, but it remains Lululemon's largest market. The company reported that same-store sales in the US and Canada declined by 3% from the previous year, and it opened one net new store in the region last quarter.Lululemon's strong performance in China comes as the country's retail <a target="_blank" href="https://www.businessinsider.com/china-economy-growth-consumer-spending-demand-real-estate-debt-crisis-2024-8">recovers in pockets of the economy</a>, with a 2.7% year-over-year increase in retail sales in July that surpassed expectations. This growth was driven by a resurgence in consumer confidence and spending, particularly online, aided by events like the <a target="_blank" href="https://www.businessinsider.com/china-618-win-shoppers-sales-down-consumer-spending-discretionary-luxury-2024-6">618 Online Shopping Festival</a>.Last month, Lululemon faced <a target="_blank" href="https://www.businessinsider.com/lululemon-breezethrough-leggings-criticized-pulled-stock-plunged-tiktok-youtube-reviews-2024-7">backlash</a> in the US market after pulling its new "Breezethrough" leggings from shelves due to customer complaints about the design. Shoppers criticized the leggings for their unflattering deep V seam and poor fit.<div type="image" title="Backside of grey Lululemon Breezethrough leggings, with deep-V stitching" height="3916" width="3024" msid="112915109" hostid="261" sizebytes="1028226"></div>The launch was a "test-and-learn" experience, said CEO Calvin McDonald on a Thursday call with analysts. He also said that the company plans to reintroduce the fabric next year.The "Breezethrough" pants saga was reminiscent of another yoga pants <a target="_blank" href="https://www.businessinsider.com/lululemons-sheer-yoga-pants-fiasco-2013-3">blunder</a> in 2013, in which the company's yoga pants were too sheer and led to recalls. But this year's Breezethrough release had a less severe impact than the sheer pants, wrote Tom Nikic, a Wedbush Securities analyst, in a note cited by <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-08-29/lululemon-will-re-release-its-panned-breezethrough-pants-eventually?srnd=phx-latest">Bloomberg</a>.Lululemon's McDonald also said the Breezethrough issue was "negligible" for the company's second-quarter performance.The athleisure company reported overall revenue of $2.37 billion in the second quarter, a 7% increase compared to the same period last year.

North Americans aren't buying as much Lululemon, but Chinese consumers can't get enough

<ul class="summary-list"><li>Shein plans to sell its supply-chain technology to other retailers.</li><li>The strategy could help grow its revenue, but experts say the brand's reputation may be an obstacle.</li></ul><a target="_blank" href="https://www.businessinsider.com/inside-shein-path-ipo-climate-fast-fashion-controversies-stock-exchange-2024-5">Shein</a> is looking to sell the supply-chain technology that has been a big part of its success. Industry experts say that while it could boost the online retailer's revenues, getting brands to sign on could be an uphill battle.Shein has developed a unique on-demand manufacturing model that enables it to turn around designs in a matter of weeks, compared with the several months more typical among its fast-fashion competitors.Now, according to an investor letter from Shein's executive chair, Donald Tang, which was first reported by The Wall Street Journal <a target="_blank" href="https://www.wsj.com/business/shein-to-market-its-unique-supply-chain-technology-to-global-brands-32fa0ed8">in March</a>, Shein is looking to sell that technology to other brands and retailers."Supply-chain technology is a top secret for a business like this," said Evelyn Gong, an assistant professor of operations management at Carnegie Mellon University's Tepper School of Business. "People have been curious, and now Shein suddenly is willing to share it with everyone who's willing to pay for this technology, including its competitors."Shein was founded in China in 2012 and moved its headquarters to Singapore in late 2021. It's a private company and thus isn't obligated to disclose its financials, but Coresight Research estimated that it generated nearly $32 billion in revenue in 2023. Shein has grown a lot in a short amount of time, and its ambitions are even larger.It <a target="_blank" href="https://www.businessinsider.com/what-is-shein-billion-dollar-fast-fashion-company-explained-2023-7">confidentially filed for a US initial public offering</a> in November, which is expected to be one of the largest public debuts in years. After facing regulatory struggles and criticism from lawmakers in the US, <a target="_blank" href="https://www.businessinsider.com/shein-ipo-new-york-london-us-scrutiny-listing-2024-2">Shein is said to be exploring moving its IPO</a> to the London Stock Exchange.Shein has also grown beyond its fashion roots, selling products in categories such as home goods, electronics, and office supplies. It has also opened up its site to third-party sellers in a marketplace model similar to Amazon's.But Shein's rise hasn't come without controversies — it has weathered allegations related to its labor practices and <a target="_blank" href="https://www.businessinsider.com/temu-shein-under-increased-pressure-from-us-lawmakers-de-minimis-2024-2">import strategy</a>, among others — that could hamper its efforts to expand to new business lines, experts said.<h2 id="71c04589-0e4b-4cac-91f4-c71ea2486d4c">A 'playground' for small designers and brands</h2>Shein works directly with more than 5,000 suppliers, mainly in China. Its forecasting tools and high volume of customer data allow it to stay on top of the latest trends.By showing it has consistently high demand for its products on social media, it can negotiate lower rates and minimum order quantities with its suppliers, Prince Ghosh, a cofounder and the CEO of the quality-control startup Factored Quality, said. This means it can manufacture only the most popular items and avoid sinking money into inventory that might not sell as well."Fast fashion has been around for a while," Ghosh said. "Shein, and now Temu and many others, really just built this modern version of it that they have owned a lot of themselves."<div type="image" title="A pair of black sunglasses propped on a table with a Shein tag." height="3712" width="5568" msid="110774600" hostid="261" sizebytes="462130"></div>That on-demand model could appeal to small, up-and-coming brands that might want to experiment with designs before they fully scale production. Shein already does this on a smaller scale through its Shein X program, which it launched in 2021. The <a target="_blank" href="https://affiliate.insider.com?h=c7c824610c2b39bedd55d2a22737e85669e9b35d9ab1c297d1b743007976e21d&amp;postID=6658e8e966bb31e50751c374&amp;postSlug=shein-to-sell-supply-chain-technology-experts-debate-challenges-2024-5&amp;site=bi&amp;u=https%3A%2F%2Fus.shein.com%2Fcampaign%2Fsheinx-story">incubator program</a> involves Shein manufacturing, marketing, and selling designs created by individual designers.Making the tech available more widely could help partner brands gain valuable insight into inventory levels and forecast demand. Brands that aim to keep their prices low while keeping up with seasonal trends could also benefit. It's often very expensive for brands to develop prototypes themselves, especially in the US, so using Shein's supplier network could be more cost-effective."It would be a pretty good playground for individual designers and small brands or startups that are just starting out and don't have the resources to set up an independent supply chain themselves," Gong said.Shein has also made use of <a target="_blank" href="https://www.businessinsider.com/shein-temu-de-minimis-tax-loophole-scrutiny-2024-1">de minimis, a provision in US import law</a> that allows shipments of less than $800 to enter the country duty-free and with minimal inspection. It consolidates orders in fulfillment centers in China and then ships them by air to the US in individual parcels. By doing so, it can avoid paying duties that more traditional retailers would have to pay when importing their products wholesale. Brands partnering with Shein could benefit from this practice as well."That's how they're able to keep that low cost," Ghosh said.A Shein spokesperson said the company's success did not depend on the de minimis provision."Our business model, focused on creating an on-demand production approach that measures and responds to customers' needs and preferences, is what drives our growth," the representative said.Still, calls to overhaul de minimis have grown louder in recent months. US lawmakers and advocacy groups argue that the loophole hurts American textile businesses and allows for illicit goods to enter the country. Shein has also said it <a target="_blank" href="https://www.sheingroup.com/pdfs/aafa-letter/">supports changes to de minimis</a> as long as they're fair.<h2 id="76aa076e-ab0d-416e-859c-0bf34ace2d9c">Brands might have some hesitations</h2>Shein wouldn't be the first retailer to diversify its revenue streams by selling its technology.Walmart <a target="_blank" href="https://www.businessinsider.com/walmart-commerce-technologies-trademark-filing-job-posting-amazon-2022-2">launched Walmart Commerce Technologies</a> in 2021 to sell services such as its artificial-intelligence-powered <a target="_blank" href="https://www.businesswire.com/news/home/20240314754136/en/Walmart-Commerce-Technologies-Launches-AI-Powered-Logistics-Product">route-optimization</a> tech and its in-store fulfillment capabilities. The German e-commerce giant Zalando <a target="_blank" href="https://corporate.zalando.com/en/brands-retailers/platform-services/zalando-logistics-solutions/zalando-logistics-solutions-glance">similarly sells logistics services</a> to partner retailers.But Shein has reputational concerns to contend with. For one, it has drawn criticism and scrutiny following <a target="_blank" href="https://www.businessinsider.com/shein-factory-workers-18-hour-shifts-paid-low-wages-report-2022-10">reports</a> that laborers in its partner factories worked excessive hours in poor conditions. Lawmakers <a target="_blank" href="https://www.rubio.senate.gov/rubio-investigate-shein-and-temu-for-slave-labor/">have called</a> for the Department of Homeland Security to investigate whether goods sold on Shein and Temu and exported to the US were made using forced labor, which would violate the US's Uyghur Forced Labor Prevention Act.The Shein spokesperson said the company had a "zero-tolerance policy for forced labor" and required its "contract manufacturers to only source cotton from approved regions."<div type="image" title="A worker makes clothes at a garment factory that supplies SHEIN." height="3710" width="5565" msid="110774598" hostid="261" sizebytes="685120"></div>"We take visibility across our entire supply chain seriously, and we are committed to respecting human rights," the spokesperson said.Shein has also <a target="_blank" href="https://www.businessinsider.com/shein-accused-using-shell-companies-to-steal-designs-new-lawsuit-2023-7">faced multiple lawsuits</a> alleging it <a target="_blank" href="https://www.fashiondive.com/news/shein-copyright-complaint/696575/">stole designs</a> from other companies. If brands work with their network of suppliers, experts said, it could mean sharing their detailed design information, which some see as a risk. It's not clear whether Shein would get access to its partners' customer data or whether it could use that data to inform its own product decisions."We are continually investing in our review process and are committed to driving industry-wide advancement," the spokesperson said. "Shein suppliers and third-party sellers are required to comply with company policy and certify their products do not infringe third-party IP."Working with established brands could help Shein improve its image as it prepares to debut on the public markets. CNBC reported that <a target="_blank" href="https://www.cnbc.com/2024/05/13/nrf-rejects-shein-membership-as-retailer-pursues-us-ipo.html">Shein had also applied</a> to join the National Retail Federation, the largest retail trade organization in the US, but had been denied multiple times.But if it's successful in selling its tech to brands it hasn't worked with before, Shein could expand its reach, Anand Kumar, an associate director of retail research at Coresight Research, said."Currently, Shein just sells the very low-cost products, but including various brands in its platform, it can sell products at various price ranges," he said. "It'll help to position it to compete with more global retailers."

Shein wants to sell the supply-chain tech it used to disrupt online shopping. Retail experts say brands may have concerns. 

<ul class="summary-list"><li>A study linked one Chinese criminal organization to over 75,000 fraudulent online shops.</li><li>The group, known as 'BogusBazaar,' has processed over $50 million in fake orders, the study found.</li></ul>Have you encountered an online shop with deals too good to be true? Well, they probably are, and the website probably is too.As the rise of online shopping took hold during the pandemic, so did the <a target="_blank" href="https://www.businessinsider.com/how-to-spot-fake-goods-online-2023-8">rise of fake online shops</a> and products.SR Labs is a German-based cyber security company that consults with clients in more than 21 countries. The company last week announced the findings of <a target="_blank" href="https://www.srlabs.de/blog-post/bogusbazaar">a three-year study</a>, which found that one Chinese criminal organization was linked to more than 75,000 fraudulent online shops.The group, dubbed "BogusBazaar," mostly runs websites claiming to sell items like designer clothes at cheap prices, the report says. Instead, the sites harvest credit card details and collect payments for the fake merchandise.The fake shops processed over $50 million in orders between March 2021 and April 2024, SR Labs says.A spokesperson for SR Labs noted that, since every successful order does not conclude with successful payment, the immediate monetary damage to the victims is likely lower than the figures suggest. But the exposure of credit card details to the scammers will likely "add to the overall damage."SR Labs said the group is highly organized, using a cloud computing model where a core team manages the system's infrastructure while a "decentralized network of franchisees operates fraudulent shops.""A typical BogusBazaar server runs about 200 webshops, with a few servers hosting more than 500," the report says. "These servers are often associated with more than a hundred IP addresses each."Additional data shared with Business Insider showed that victims in France placed the most orders on the phony shops — almost 200,000. Users inside the United States placed the second-most orders — about 168,000 — at a value of more than $12.5 million.Most of the scam's 850,000 victims come from inside the United States and Western Europe, with almost no victims identified inside China, where the fraudsters are based, SR Labs says.The credit monitoring company Experian says that <a target="_blank" href="https://www.experian.com/blogs/ask-experian/credit-education/preventing-fraud/credit-card-fraud-what-to-do-if-you-are-a-victim/">the best thing to do if you are a victim of credit card fraud</a> is to notify your card provider, request a fraud alert on your credit report, report the scam to the police, and contact the three major credit bureaus.

A Chinese criminal ring has stolen $50 million by franchising thousands of fake online shops, experts say

<ul class="summary-list"><li>Capsule aims to revolutionize shopping with an interactive app for on-demand product discovery.</li><li>The app uses computer vision and generative AI to identify and recreate products globally.</li></ul>The way we shop is in for a revolution.Instead of walking into a store, browsing a catalog, or scanning the web for your favorite brands, imagine being able to shop just like you'd identify a song with the <a target="_blank" class="" href="https://www.businessinsider.com/guides/tech/what-is-shazam#:~:text=Become%20an%20Insider%20and%20start,short%20sample%20of%20their%20audio.">music discovery app Shazam </a>— on demand, whenever, and wherever you're located. That's the vision behind the interactive shopping app Capsule.The e-commerce world has seen this concept before. In 2019, Amazon unveiled <a target="_blank" class="" href="https://www.businessinsider.com/amazon-launches-shazam-for-clothes-2019-6">StyleSnap, an AI-driven tool</a> that matched fashion photos users uploaded with products on its site. Brands like Asos, Wayfair, and Target have launched similar tools that rely on computer vision and deep learning algorithms to identify styles, shapes, and patterns from pictures.But Capsule's goal is more ambitious and far-reaching: It aims to become the default destination for online shopping. Instead of relying on its inventory or partnerships with other brands, the company scrapes data from some 20,000 websites nightly, ingests it, and uses it to power its product index.Capsule cofounder and CEO Michele Van Ruiten told Business Insider that its mapping out women's fashion, intending to own the space within two to a half years. Its eventual goal is to "create a universal horizontal data layer of commerce that exists above the internet," Van Ruiten said. "This data layer understands products, every shoppable product globally, what it is, who sells it, what it's made of, and its resale value."So, consumers will no longer need to conduct laborious online searches for a specific pair of heels or a water bottle. "A single search considers everything online," Van Ruiten said.<h2 id="e53b8a84-5b1e-4da1-a726-2ace3df2072b">Snap a picture, buy the dress</h2><div type="image" title="Capsule user guide" height="1050" width="2478" msid="112444035" hostid="261" sizebytes="93000"></div>In practice, Capsule works a bit like a <a target="_blank" class="" href="https://www.businessinsider.com/google-images">Google reverse image search</a> on hyperdrive. Users simply take a picture of a product — whether that's an actor wearing a dress they like or a pair of shoes they've spotted in a store window — and upload it to the app, and it will show them the item, along with other, similar, shoppable styles.The company uses computer vision models to infer details about the items in its catalog, compare products to one another, and connect identical items.Beyond the image search, Capsule can also recommend a personalized color wheel for users based on their skin, eyes, and hair, using proprietary algorithms. It also allows users to augment their searches with generative AI. So, if they upload a picture of a white shirt but want to see it in colors not offered by the brand that makes the shirt, Capsule uses generative AI to recreate it in new colors, allowing users to search for options from other brands.Last month, Capsule also launched a new text search feature in beta that allows users to search for clothes based on a concept they have in mind — whether that's just a "simple white t-shirt" or "<a target="_blank" class="" href="https://www.businessinsider.com/sex-and-the-city-surprising-fun-facts">Carrie Bradshaw</a>-inspired dress" — rather than a specific picture.Eventually, Capsule plans to share data on what users are searching for or how they're augmenting products with brands to drive new product designs. It'll need to accrue a few million more users before then, but Van Ruiten said the company is already able to forecast trends before they hit apps like Pinterest or called out by fashion magazines like Vogue.It's paving the way for a new way of shopping that's driven by the consumer.Consumers are shifting away from "wanting to replicate things they see online in a one-to-one way," Van Ruiten said. The average Gen Z shopper, especially, finds fashion inspiration in tons of places across the virtual world — from brands to influencers to viral trends. So they're starting to see apps like Capsule as a place "where their own creativity could put them at the helm of product discovery," she said.

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