Virtual Models, Real Impact: Lalaland.ai`s Disruption of Online Fashion
| Case Code: ITSY146 Case Length: 11 Pages Period: - Pub Date: 2025 Teaching Note: Available |
Price: Rs.400 Organization: Lalaland.ai Industry: Technology & Communications Countries: Netherlands Themes: Artificial Intelligence, Digital Disruption, Business Ethics,Blue Ocean Strategy |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Modus Operandi of Lalaland
Lalaland offered an AI-powered digital model studio tailored for professionals in the fashion and design industry. The tool made extensive use of GANs, 3D Body Modeling , Computer Vision , Cloud Computing , and Computer-Aided Design (CAD) . It was stated that Lalaland trained its algorithms on the photos of real individuals, thereby offering a level of realism that helped visualize how products would appear in real-world scenarios..
The Positive Side of AI-Generated Models
According to experts, users who saw themselves represented in ecommerce, even if it was through AI-generated models, were more likely to feel acknowledged, valued, and respected. This then not only contributed to raising their confidence, but also pushed them to view the brand/retailer positively. Musandu said, “Our product focuses on the issues of consumers who feel underrepresented in terms of ethnicity, gender identity and body representation. That’s why we want to work with people who recognize themselves in these issues, to co-create a positive change.” ..
…And The Negative Side
Most fashion industry observers pointed out that AI was creating an existential threat to the industry, especially to fashion models and photographers, by eroding existing jobs and limiting work opportunities in the future. They also expressed concern that AI-generated model services were especially exploitative of models from marginalized communities, who were more likely to go unpaid..
The Way Forward
The Global Generative AI in Fashion Market size was expected to be worth around US$ 2,230.4 million by 2032, from US$ 96.5 million in 2023, growing at a CAGR of 36.9% during the forecast period from 2024 to 2033 (See Exhibit II). The AI in fashion market size was calculated at US$ 3.14 billion in 2025 and was forecast to reach around US$ 60.57 billion by 2034, accelerating at a CAGR of 39.12% from 2025 to 2034. The market sizing and forecasts were revenue-based (US$ million/billion), with 2024 as the base year..
Exhibits
Exhibit I: Prices for Using Lalaland
Exhibit II: Generative AI in Fashion Market in USD by 2032
Exhibit III: AI in Fashion Market Size – 2024-2034 (USD Billion)
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