Fashion Nova vs Shein Case Study- Who Is Winning? – 440 Industries (2024)

Introduction

Fashion Nova and Shein have their brand faces all across the internet, with positive reviews. This has generated more audience for the brands than ever. Amidst this popularity, some customers are caught between Fashion Nova vs Shein. They cannot decide the best brand that deserves a loyal customer. Since the fashion industry is a vast competition, who is winning between these two brands?

This article analyzes customers’ responses to these brands in recent years, emphasizing the sustainability of each in the market competition.

  • Brief History of the Fashion Nova and Shein Brand
  • Marketing Strategy for Fashion Nova and Shein Brands
  • The Development of Fashion Nova vs Shein Brand
  • Fashion Nova vs Shein Criticism
  • Fashion Nova vs Shein Refund Policy

Brief History of the Fashion Nova vs Shein Brand

These brands’ history’s uniqueness may influence their current business method or approach.

Shein started in 2008, while its target audience was majorly English-speaking shoppers, while the brand sold mainly wedding dresses. However, Chris Xu is an expert in Search Engine Optimization (SEO) marketing. This has contributed to the brand’s visibility in the internet space.

The brand had no unique value than other Chinese e-commerce stores that were in existence. It was majorly a dropshipping business in the early years, as the brand did not start as a manufacturer. However, the story changed in 2014. The brand began a complete supply chain operation.

Before 2014, Shein began to migrate from only wedding dresses. They supplied France, Spain, Italy, Russia, and Germany with shoes, jewel ties, and bags, in 2010. Currently, the company has up to 800 designers that make prototype styles. This enhances their signature and offers to the public.

On the other hand, Fashion Nova has 500 sewing factories, with 75% of the products produced in Los Angeles.

Richard Saghian created the Fashion Nova company in 2006. It all started as a family attire boutique in Los Angeles.

Fashion Nova is not a Chinese-owned brand like Shein. It is an American fashion retail store, and they have the most prominent physical retail location in Southern California. Unlike Shein, it was easier to predict the target audience or focus of Fashion Nova from the beginning, as they were selling clubwear. Although the clothes they produce today are not just for clubs, they have the same pattern and system.

Fashion Nova outshined the Shein industry with one striking thing; the launch of Halloween outfits in 2018.

Marketing Strategy for Fashion Nova vs Shein Brands

The goal is to cut across several age groups and nationalities for both fashion lines. However, you can see some trends in each brand. This may be as a result of the employing of market strategy. Due to this, it portrays some sets of people as the primary audience.

So far, the majority of Fashion Nova customers have been fashion enthusiasts. This is due to the crazy styles available at the brand, including ripped jeans and skimpy clothes. Hence, fashion bloggers also earn from the brand by representing their products.

An excellent way to generate followers for both brands is to offer discount codes and referral packages.

The good thing is, Fashion Nova has gone beyond body-fitted cloth. The brand aims to make every woman proud of their body, regardless of size or shape. No matter who you are or your size, you can find perfection in this brand.

Shein is more prevalent in TikTok than Instagram. The primary strategy employed by Shein is giving discount codes and coupons to TikTok teens. The large sizes like XL and 4XL have helped GenZ diversify in their styles and outfits.

The Development of Fashion Nova vs Shein Brand

Based on the development and popularity of each brand, it is possible to tell who is winning. Comparing the Fashion Nova vs Shein brand includes their growth rate.

Shein Growth

Shein is located in China but has a mass delivery to many parts of the world, with a significant customer from the U.S. After the pandemic silence was over, Shein was more popular than Amazon on the iOS App Store. This increased the revenue more than it had experienced in the previous years. Many web analytics platforms announce Shein as the lead of the e-commerce industry.

The Shein brand is gradually improving in terms of production volume. About 1000 styles are added to the retailer’s website daily. On the other hand, Fashion Nova releases the same style ratio per week.

The Shein business model aims to produce quantity styles at an affordable price. Many shoppers on the Shein website luckily get away with outfits, shoes, and accessories for a price as low as $30. However, Shein’s low price is not enough reason for its growth, as research has shown that its supply chain has contributed more to the brand’s advantage.

Fashion Nova Growth

Contrary to Shein, Fashion Nova is more of an Instagram brand. It is safe to say the brand has built an entire fashion company on Instagram. This proves the need for Fashion Nova vs Shein analysis. Many customers do not realise each has a different mode of operation. Fashion Nova is a body-fitted woman’s body, while some customers complain that the clothes are too tight. However, Fashion Nova and Shein both use celebrities, as the former uses endorsers like Amber Rose and Jenner.

According to Fashion Nova founder Richard Saghian, the brand aims to bring back the beauties in runways through body-fitted clothing. Since people instead lookup the internet for their runways, Saghian admitted they would restore what was long lost through Instagram. Before moving to other social media platforms, Fashion Nova generated a large audience on the company’s web page. This “body-con” company is currently making waves in the entertainment industry.

Fashion Nova vs Shein’s Growth

Undoubtedly, Shein had collaborated with many influencers and top celebrities, including Nick Jonas, Katy Perry, Lil Nas, and many others. However, reviews show a high possibility of the brand generating many sales from word-of-mouth advertisem*nts. Past users who enjoyed quality service and products tend to tell their loved ones about it.

In 2017, the Shein advertisem*nt model took a significant turn by showing on the U.S daytime television shows. It is no surprise that Shein could attract enough audiences from the west. Shein used the referral method on less popular influencers in the west, giving them about 10% to 20% commission.

According to SimilarWeb’s statistical source, 14% of the traffic generated by Shein in 2014 could be associated with influencers’ recommendations. This boosts not only visibility but also market sales as well.

Fashion Nova’s strategy is through the use of the internet with influencers. These influencers do not only advertise the products but also get their followers to imitate them. This law of attraction has proven to work for many businesses.

According to the Earned-Media Value Chart, Fashion Nova led Zara and other popular brands with $125 million. With the high endorsem*nt from celebrities, Fashion Nova has been able to pull 5000 influencers from across the world. At the same time, research shows that an Instagram post from Kylie representing the brand could generate extra $50,000 sales in a few days.

Fashion Nova vs Shein Criticism

Globally, the e-commerce industry is significant, as Fashion Nova vs Shein competes with other top brands such as Amazon, Target, and AliExpress. Hence, they expect to receive conspiracy theory rumours or negative remarks on their growth journey.

Here is some famous criticism about the Shein brand:

  • Many people assume Shein is not being transparent about its source of production. However, the company has made several announcements not supporting child labour.
  • At the initial phase of Shein, it was late to adapt to the oversized body measurements, as some of their models were photoshopped. This complaint came from Reddit users.
  • Some of their products, such as the inappropriate portray of the Muslim prayer mat, backfired on them.
  • Customers in the west complained when Shein made jewellery with the Buddhist Swastika design on it. Although this could have been just one of the thoughtful designs from Shein, many customers related it with the Nazi Swastika symbol.
  • Another complaint about Shein is with its application and website. Many complain that some of the notifications and ads were not necessary.

Here is some famous criticism about the Fashion Nova brand:

  • In Dec 2019, the New York Times published an unfavourable work environment about Fashion Nova. However, the fast-fashion brand replied that they ensure to pay every worker their dues.
  • Fashion Nova also launched a kids’ clothing line, which did not sit well for many parents. However, many social media critics tagged the clothes offensive to kids or underage.

Fashion Nova vs Shein Refund Policy

Affected customers can receive a refund of their money if they follow the following requirements.

With Fashion Nova, a refund is possible if the items you order sell out before being processed. Another cause for a refund is if the items are damaged upon delivery. This may occur as an error from the delivery team or improper packing and transportation system. Usually, the refund takes 2-5 working days. However, it may take longer due to technical or confirmation issues. That being said, it does not take more than ten working days to receive a refund.

The Shein policy states that a refund is only possible if the return does not exceed 45 days to the purchase period. However, if it is your first time returning an order with Shein, you will not have to pay a shipping fee.

Comparing Fashion Nova with Shein, the refund modes are the same. You will receive a refund through the same account or wallet you paid with. Also, both brands do not refund the shipping fee, but only the money paid to purchase the product.

Conclusion

When analyzing Fashion Nova vs Shein, you can deduce a standard feature: they both have high social media publicity. This has made them become many GenZ fashion favorites.

On the other hand, both Fashion Nova and Shein have gotten bad reviews from customers. For Shein, some people complained about receiving a different clothing size apart from the one ordered on the internet. Some customers from Fashion Nova also complained about poor customer service and late delivery. In all, no particular brand is winning, as each owns different spaces on the internet. Still, Shein seems to have more loyal customers than Fashion Nova on a general overview. However, style is an individual opinion, as there is a need for a brand to convince you about their possibility of meeting your needs. Sometimes, the winning brand may not meet your fashion expectations.

Fashion Nova vs Shein Case Study- Who Is Winning? – 440 Industries (2024)

FAQs

How did Fashion Nova become so successful? ›

After Instagram (IG) became so popular, Fashion Nova, a low-cost e-fashion company has developed a winning scenario by exploiting user's ER on one hand and asserting the brand's reputation on the other hand using paid partnerships with the same IG influencers whose style was emulated, thus rising from anonymity to pop- ...

Who is Fashion Nova target audience? ›

The target market of FashionNova is mainly millenial customer segment. In every way, it is trying to target the taste and preferences of millenial generation. The website was ranked no 6 as one of the most favourite website of young people. Millenials are a net savvy generation that loves shopping online.

Why is Shein successful? ›

But rather than ordering thousands of each item, Shein produces lines in very small quantities with fewer than 100 items ordered. It then uses real-time information to see how well each item performs, and rapidly orders more if a SKU proves popular, while discontinuing items that are not selling.

What is the Fashion Nova controversy? ›

Fashion Nova has once again found itself in hot water after seemingly ripping off another brand's design. This time, it's being accused of copying Black-owned knitwear brand Hanifa.

Is the fashion industry successful? ›

The fashion industry delivered a 21 percent increase in revenues in 2020–21, and EBITA margins doubled by 6 percentage points to 12.3 percent.

What is Fashion Nova competitive advantage? ›

Fashion Nova is known for keeping up with the high demand for trendy clothes and utilizing influencers and celebrities as their marketing strategy. This brand offers ultra-fast fashion for an affordable price.

Where is Fashion Nova ranked? ›

In the Fashion market in the United States, fashionnova.com is ranked #29 with > US$750m in 2022. Therefore, fashionnova.com accounts for < 0% of eCommerce net sales in this category. The top stores are shein.com, macys.com and walmart.com.

What is Fashion Nova most known for? ›

Fashion Nova is an American fast fashion retail company. The company primarily operates online, but it also has five brick-and-mortar locations. Fashion Nova is known to use social media marketing, particularly on Instagram.

How much does Fashion Nova pay their influencers? ›

How much does an Influencer make at Fashion Nova in the United States? The estimated average pay for Influencer at this company in the United States is $34,309 per year, which is 43% below the national average.

Who uses Shein the most? ›

United States

What is Shein most popular for? ›

Shein Is the World's Most Popular Fashion Brand—at a Huge Cost to Us All. Just before Christmas, Mélo—a lifestyle blogger from Paris known for promoting body positivity—uploaded a video on Instagram showing off shiny, glittering party dresses from Shein, a fast-fashion e-retailer from China.

Why do people still support Shein? ›

Shein can offer such low prices because it's exclusively an online retailer, so it has fewer overhead costs. It can quickly capitalize on trends without worrying as much about inventory. Shein can also do this because it controls its own supply chain.

Why is Fashion Nova in a lawsuit? ›

In April 2020, Fashion Nova agreed to pay money to settle FTC charges that the company didn't properly notify customers about delayed shipments and illegally used gift cards to compensate customers for unshipped products. The FTC sent checks and PayPal payments to affected consumers in March 2021 and October 2021.

Who sued Fashion Nova? ›

Plaintiffs Kerry Hines and Tanisha DiVito filed class action lawsuits against Fashion Nova, LLC on Apr. 18 in New Jersey and Michigan federal courts, respectively, alleging violations of their states' consumer laws.

Do the Kardashians wear Fashion Nova? ›

The Kardashian and Jenner sisters work with legacy brands like Estée Lauder, Calvin Klein, and Adidas, but Kourtney, Khloé, and Kylie have all been paid to wear Fashion Nova, and Kim has said openly that she shops at Zara and H&M.

What are the problems in fashion industry? ›

Challenges In Fashion Industry
  • Increasing International Competition.
  • Exploitation of laour.
  • Competition.
  • Sustainability.
  • Production difficulties.
  • Increasing pollution.
  • Technological difficulties.
  • Consumption issues.
Nov 23, 2022

Which is the biggest industry fashion? ›

Top 10 Biggest Fashion Companies by Market Cap
CompanyCountryMcap (in Billions Usd)
NikeUnited States$92.89
LVMHFrance$84.81
TJXUnited States$49.13
Hennes & MauritzSweden$44.47
6 more rows
Mar 6, 2023

Who makes the most money in the fashion industry? ›

15 highest-paying fashion jobs
  • Merchandising manager. ...
  • Buyer. ...
  • Editor-in-chief. ...
  • Art director. ...
  • Creative director. ...
  • Design director. National average salary: $96,178 per year. ...
  • Sourcing manager. National average salary: $98,439 per year. ...
  • Product manager. National average salary: $102,415 per year.
Mar 10, 2023

What are the strengths of Fashion Nova? ›

Fashion Nova work with celebrities like Kylie Jenner and Cardi B, who they pay to wear the brand.
...
  • Strengths - Marketing, pricing, celebrity endorsem*nts, and coupons.
  • Weakness - Locations, and merchandise in store.
  • Opportunities - Expansion.
  • Threats - Clothing brands like Forever 21, H&M, and Charlotte Russe.

How many influencers work with Fashion Nova? ›

More than 3,000 high-profile celebrities and prominent Instagram influencers, including Kylie Jenner, Cardi B, Khloé Kardashian, Kourtney Kardashian, and Amber Rose, are partners with the company. What is this? Fashion Nova occasionally pays these celebrities $20,000 to wear its clothing.

Is Fashion Nova profitable? ›

Fashion Nova revenue is $4.3M annually. After extensive research and analysis, Zippia's data science team found the following key financial metrics. Fashion Nova has 600 employees, and the revenue per employee ratio is $7,150. Fashion Nova peak revenue was $4.3M in 2022.

Is Fashion Nova more expensive than shein? ›

Shein vs Fashion: Which is Cheaper

You can discover affordable clothing at both stores, but here's what you should note: First, Fashion Nova is much more expensive than SHEIN. The cost of shopping at Fashion Nova is high. At Fashion NOVA, if you add at least 20 items to your cart, you should plan to spend $200 or more.

What is the most searched fashion brand on Google? ›

Most searched fashion brands on Google in the U.S. 2021

In 2021, Shein was the most searched fashion retail brand on Google in the United States, with a monthly average search volume of 11.3 million. Founded in 2008, Shein is a Chinese online fast fashion retailer.

Do rappers wear Fashion Nova? ›

Everyone from Remy Ma, 2 Chainz and Rick Ross to French Montana, Lil Uzi Vert and A Boogie Wit Da Hoodie has dropped lines about the fashion label in their music. Even rappers like Bow Wow, Soulja Boy and Love And Hip Hop reality star Safaree has been seen wearing pieces from the brand's men's line.

Who owns Shein? ›

Chris Xu, the founder and billionaire behind the company, primarily owns SHEIN. SHEIN leverages a real-time retail business model, where fashion trends are created out of social media platforms like TikTok, which are quickly turned around as products available for shopping online.

Why is everyone promoting Fashion Nova? ›

Fashion Nova has been based in Los Angeles, CA since 2006. With only 5 physical stores scattered across Southern California, its globally insane popularity is the result of its work with high-profile influencers and its speed at delivering trend-led pieces.

What is Fashion Nova target audience age? ›

fashionnova.com Audience Demographics

The largest age group of visitors are 18 - 24 year olds (Desktop).

How much does Shein pay influencers? ›

An affiliate is someone who can earn a commission if their customer referrals make a purchase. Here are simple steps to follow so you can become one. Your customer is directed to the Shein website, where they can place their order. You then get a 10-20% commission from each sale.

How many followers do you need to be sponsored by Fashion Nova? ›

Via the Fashion Nova Website

You must have an active social media account with at least 10,000 followers to get paid. Otherwise, you might end up with freebies at best.

How much does Cardi B get paid from Fashion Nova? ›

Cardi B specifically has said she's received as much as $20,000 monthly to wear Fashion Nova.

What is Shein actually called? ›

Shein, originally named ZZKKO, was founded in China in 2008 by entrepreneur and search engine optimization (SEO) marketing specialist Chris Xu (Xu Yangtian).

What are the weaknesses of Shein? ›

However, Shein is not without its weaknesses. The company has faced criticism for its fast-fashion business model, which prioritizes quick production and low prices over sustainability and ethical production practices. This factor may be detrimental as consumers become more environmentally and socially conscious.

Why do people love Shein? ›

It's much cheaper to manufacture clothes in China than it is in the U.S. This is why SheIn can afford to set lower price points than other clothing brands can. At SheIn, you get what you pay for. SheIn uses lower-quality materials to make their clothing, which keeps costs down and prices low.

What is Shein's main audience? ›

Shein's primary audience is Gen Z consumers, and it has focused much of its marketing efforts on social media influencers on platforms such as Instagram and TikTok.

How much does Shein pay their workers? ›

The documentary reported Shein garment workers are paid as little as four cents per clothing item in work shifts that can last up to 18 hours.

Where does Shein rank? ›

In the Fashion market in the United States, shein.com is ranked #1 with > US$10,000m in 2022. Therefore, shein.com accounts for 5.0% - 10.0% of eCommerce net sales in this category. The top stores are shein.com, macys.com and walmart.com.

Why Shein is so popular in USA? ›

Shein presents an option that's cheaper and more convenient than traditional fast fashion retailers, which adds to its attractiveness. They also produce even faster, meaning there's always an incentive to revisit the site week after week to check on new arrivals.

Why is Shein clothing so cheap? ›

By outsourcing labor, clothing retailers can cut costs and boost profits by paying workers less. And, when labor costs are cut, product costs can be cut, too, leading to super affordable clothing. In short, Shein produces its clothes in generic wholesale factories to keep its costs at a minimum.

Where does Shein get their clothes? ›

Shein Overview. Clothing is one of the most saleable goods in China. Because China can produce cheap but fashionable pieces, business owners around the world who are into selling clothes choose to buy from Chinese sellers. There are so many advantages you can get when buying from them.

Who owns Fashion Nova now? ›

Richard Saghian - Founder and CEO - Fashion Nova | LinkedIn.

Is Fashion Nova blocking negative reviews? ›

The Federal Trade Commission finalized the order on Monday regarding allegations that Fashion Nova blocked negative reviews on its website. The agreement requires the fast fashion retailer to pay a $4.2 million settlement and prohibits the suppression or misrepresentation of customer reviews on its products.

Why did Fashion Nova refund me? ›

Fashion Nova issues refunds to the original form of payment used on an order in the event that your order: Is canceled by Fashion Nova. One or more of your items sold out since your order was processed. Item(s) proved to be received damaged, defective, or incorrect.

Did Kylie Jenner work with Fashion Nova? ›

Fashion Nova's collaborations with popular celebrities like Cardi B, Kylie Jenner, Khloe Kardashian, Megan Thee Stallion and Amber Rose – among its at least 2,000 influencers roster – also gave the brand a massive boost in social media branding.

How much is the Fashion Nova owner worth? ›

Richard Saghian, CEO and founder of Fashion Nova, has a large net worth and owns several properties in Los Angeles, some worth more than $100 million.

Who is the richest of the Kardashians? ›

Kris Jenner - $190 Million

Of course, Kris Jenner is the reason why we are constantly surrounded by the famous family. Not only did she initially pitch the Keeping Up with the Kardashians in 2007, but she was also an executive producer on the show.

Are Fashion Nova models photoshopped? ›

In addition, fans of the brand have taken to social media to point out the brand's obvious photoshopping. The brand has been over-airbrushing models and shrinking their waist sizes to make the models look curvier.

Did Kim Kardashian ripped the dress? ›

Ripley's Believe It or Not!, which bought the gown in 2016 for $4.8 million, said Kardashian did not damage it.

Who made Fashion Nova popular? ›

Richard Saghian is the founder and CEO of fast fashion company Fashion Nova, which has over $1 billion in annual sales.

How did Fashion Nova get started? ›

He founded Fashion Nova in 2006 as a chain of stores selling low-price “clubwear” and apparel in Los Angeles-area malls. He launched the e-commerce site in 2013 and Instagram was central to the online business from the start.

How much did Fashion Nova pay Kylie Jenner? ›

Kylie Jenner also cashed in a $50,000 check to promote Fashion Nova apparel to her 100+ million followers.

Why is Fashion Nova getting sued? ›

The case is the FTC's first involving a company's efforts to conceal negative customer reviews. “Deceptive review practices cheat consumers, undercut honest businesses, and pollute online commerce,” said Samuel Levine, Director of the FTC's Bureau of Consumer Protection.

Who is the CEO of Shein? ›

Xu is the founder and chief executive of Shein Group, the Chinese fashion retailer that was valued at $100 billion in an April 2022 funding round. The online seller was founded in Nanjing, China in 2008 and by 2022 was the largest fast fashion company in the US market. Shein Group had revenue of $22.7 billion in 2022.

Who invented shein? ›

Founded in Nanjing in October 2008 as ZZKKO by entrepreneur Chris Xu, Shein grew to become the world's largest fashion retailer as of 2022. Shein delivers to more than 150 countries and was valued at $100 billion after a funding round in April 2022.

How much does Cardi B make Fashion Nova? ›

Cardi B's Second Fashion Nova Collection Reportedly Made $1 Million in a Day. She's making fashion money moves.

How much do they pay Kim Kardashian for Instagram? ›

Kim Kardashian-West, who makes $1,6 million per sponsored post.

How much does a Fashion Nova ambassador make? ›

How much does an Influencer make at Fashion Nova in the United States? The estimated average pay for Influencer at this company in the United States is $34,309 per year, which is 43% below the national average.

Do Fashion Nova influencers get paid? ›

Brand Ambassador

Or generally, be affiliated with the brand. In exchange for their endorsem*nt, the company provides the influencer with compensation. This can take the form of cash, free products, or other perks. As an influencer, you can make money off these partnerships.

Why is Fashion Nova refunding? ›

The Federal Trade Commission has launched a refund claims process for consumers who bought products from Fashion Nova, an online fashion retailer that blocked negative reviews from being posted on its website, according to an FTC action announced in January 2022.

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