Abstract

The case study, “Virtual Models, Real Impact: Lalaland.ai’s Disruption of Online Fashion,” discusses the disruption unleashed by Lalaland.ai (Lalaland) – a Netherlands-based fashion-tech AI startup – on the fashion industry. The case talks about the founders including CEO Michael Musandu (Musandu)’s motivations to set up the company that leveraged Generative Adversarial Networks (GANs) to create hyper-realistic, customizable digital models, representing diverse body types, ages, and skin tones. The case documents the various benefits that were provided by Lalaland to fashion brands, retailers and fashion designers. The company not only had a broader mission to challenge norms in fashion representation and promote diversity in digital spaces, but also presented a scalable commercial solution. By offering superior visual accuracy for customers, the platform aimed to reduce waste, lower costs, and eventually contribute to a more sustainable and inclusive e-commerce experience. Nonetheless, the case also raises pertinent questions about the potential of AI to eventually replace humans in another major industry and the impact this could have on livelihoods and creativity. Can Musandu successfully scale Lalaland, without causing long term repercussions in the thriving fashion industry?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand a company’s identification of a market gap and its strategic positioning.
• Identify the societal impact of AI on a well-established industry.
• Examine the sustainability aspect of a new AI product.
• Analyse how emerging technologies like AI and GANs disrupt traditional industries.
• Assess the negative impact of a market disruption on a well-established industry

Keywords

Artificial Intelligence; Business Model Canvas; Blue Ocean; Disruption; Inclusivity; E-Commerce, Sustainability; Generative Adversarial Networks (GANs); Customer Experience; Return Rates; Triple Bottom Line; Marketing Ethics; Innovation; Scalability; and Entrepreneurship.