Like TikTok, another Chinese app, people are starting to wonder how Shein came to dominate the lives of teenagers and young adults around the world. If you aren’t 15 years old you may not have even heard of the brand. The fast fashion retailer turns out new trends even faster than the likes of Zara and H&M. Shein, unlike some of its rivals, does not have any permanent stores and now is thelargestonline only fashion site in the world. If you are curious about how Shein has taken the world by storm then consider these 11 facts.
1.Shein was founded over a decade ago in 2008 in Nanjing ChinabyChris Xu an American born Chinese graduate of Washington University. The retailer was originally called SheInside but the name was shortened in 2015 to Shein.
2.Shein sells cheap, really cheap clothing. Tops start at $3.00, shoes start at $5.00 and jeans start at $12.00. It is estimated that a dress sold on Shein costshalf as muchas one sold by Zara.
3.In May of 2021 Sheinbecame themost downloaded shoppingapp on iOS and Android in the United States, with Amazon coming in second.
7. Between500 to 2,000new items are listed on Shein’s website every day. Shein is vertically integrated allowing it to go from design to shipping in as little asthree days. Zara by contrast on average takes three weeks from design to store. Commenting on the growth of Shein, TechCrunchwrote:“[Shein]manufactures in China as many apparel retailers do. The difference is Shein controls its own production chain, from design and prototype to procurement to manufacturing. Each step is highly digitized and integrated with another, which allows the company to churn out hundreds of new products tailored to different regions and user tastes at a daily rate. The strategy is not unlike TikTok matching content creators with users by using algorithms to understand their habits in real-time.”
8.Like many brands Shein has built its following largely through the use of influencers. Laura Illanes, a 22-year-old student at the University of South Carolina Upstate,saidshe gets six free pieces of clothing from Shein each month for promoting the brand to her 36,000 Instagram followers. Shein also leverages celebrities like Lil Nas X and Katy Perry who headlined a virtual COVID-19 relief concert in 2020 on Shein’s app.
9. While Shein is based in China its target market is international. It ships products to over 200 countries and its main focus is onEurope, America, Australia, and the Middle East.Similar to another Chinese app, TikTok, Shein has focused on amassing a global audience. In the United States, Shein has a 40% share of the fast fashion market with sales reaching $16 billion in 2021.
10.At one point Shein was valued at as much as $100 billion more than the combined valuations of its fast fashion rivals H&M and Zara but that valuation has dropped to $64 billion.
11. Shein opened its first brick and mortar store in November in Tokyo. To buy merchandise in the store customers have to scan a product’s QR code and then they can buy the merchandise through Shein’s website or app. Shein also opened pop up stores last year in Sydney, New York and London.
As an expert in the realm of fast fashion and e-commerce, my in-depth knowledge allows me to shed light on the extraordinary rise of Shein in the global fashion industry. I've closely followed the trends and developments in the fashion retail landscape, providing valuable insights into the strategies and mechanisms that have propelled Shein to its current prominence.
1. Shein's Founder and Origin: Shein was founded in 2008 in Nanjing, China, by Chris Xu, an American-born Chinese graduate of Washington University. The initial name of the retailer was SheInside, but it underwent a rebranding in 2015 to become Shein.
2. Competitive Pricing: One of the key factors driving Shein's success is its remarkably low prices. Offering extremely affordable clothing, with tops starting at $3.00, shoes at $5.00, and jeans at $12.00, Shein has positioned itself as a budget-friendly alternative. It's estimated that a dress on Shein costs half as much as one sold by Zara.
3. Rapid Growth and App Dominance: In May 2021, Shein achieved the milestone of becoming the most downloaded shopping app on both iOS and Android platforms in the United States, surpassing even Amazon. This points to its widespread popularity among consumers, especially teenagers and young adults.
4. Vertically Integrated Operations: Shein's operational efficiency is a standout feature. Unlike some of its competitors, Shein is vertically integrated, enabling it to move from design to shipping in as little as three days. This streamlined process contrasts with Zara's average three-week timeline from design to store.
5. Massive Product Listings and Daily Updates: Shein stands out by listing between 500 to 2,000 new items on its website every day. This rapid turnover is made possible by its highly digitized and integrated production chain. The company tailors its products to different regions and user tastes on a daily basis.
6. Influencer Marketing and Celebrity Endorsem*nts: Shein has effectively utilized influencer marketing to build its following. Influencers like Laura Illanes, with a significant Instagram following, receive free clothing in exchange for promoting the brand. Additionally, Shein leverages the star power of celebrities like Lil Nas X and Katy Perry to further enhance its reach.
7. Global Market Focus: While Shein is based in China, its target market is international. Shipping to over 200 countries, the company focuses on Europe, America, Australia, and the Middle East. In the United States, Shein holds a 40% share of the fast fashion market, with impressive sales reaching $16 billion in 2021.
8. Valuation and Physical Stores: At its peak, Shein was valued at a staggering $100 billion, surpassing the combined valuations of its fast fashion rivals H&M and Zara. However, its valuation has since dropped to $64 billion. Shein has also ventured into physical retail with its first brick-and-mortar store in Tokyo, utilizing a unique QR code system for in-store purchases.
In conclusion, Shein's remarkable success can be attributed to a combination of factors, including aggressive pricing, rapid production cycles, global market focus, and strategic marketing through influencers and celebrities. The brand's evolution from an online-only platform to exploring physical retail signifies its adaptability in the ever-changing landscape of the fashion industry.
