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Fashion is something that we simply cannot unlove. With the growing age of digital, fashion has come down to our mobile phones, computers, and tablets, which earlier were only available at retail shops and shopping malls.
Shopping for our favourite shirts, t-shirts, jeans, trousers, shoes, and more is now possible online via easy-to-use eCommerce websites and applications, which bring in a host of products across diverse categories and guarantee delivery at our doorstep with minimum charges. Shein is one such international B2C fast fashion brand that extends the best fashion wear including women's wear, men's wear, children's clothes and apparel, trendy accessories, and other fashionable products and accessories.
Slowly rising Chinese fast fashion brand, Shein has ultimately risen to a crescendo when the company emerged as the most popular shopping app in the USA for iOS and Android users, as per the reports of May 18, 2021.
Know about Shein Success Story, its founders, business model, revenue model, growth, competitors, Funding and more.
Shein - Company Highlights
| Company Name | Shein |
|---|---|
| Headquarters | Guangzhou, Guangdong, China |
| Industry | E-commerce |
| Founder | Chris Xu |
| Founded | October 2008 |
| Website | shein.in |
Shein - About
Shein - Industry
Shein - Founder And Team
Shein - Startup Story And History
Shein - Name, Tagline, and Logo
Shein - Mission and Vision
Shein - Business Model
Shein - Revenue Model
Shein - Funding And Investors
Shein - Growth
Shein - Product And Service
Shein - IPO
Shein - Acquisitions
Shein - Investment
Shein - Competitors
Shein - Future Goals And Ban In India
Shein - About
Shein is a B2C fast fashion company owned by Nanjing Lingtian Information Technology Co. founded in 2008. The company was created by Chris Xu and is headquartered in China. It focuses on both men's and women's wear. Clothes for children, accessories, bags, and shoes are some other categories of apparel that Shein houses.
The company primarily targets the shoppers in America, Europe, and Middle Eastern countries along with the consumer markets in other nations. Be it boho dresses, graphic tees, chic swimwear, or patterned blouses, Shein has something for everyone.
Shein is widely popular with people of all ages, especially with Gen Z who likes everything trendy. Almost every fashion vlogger/blogger has made a post or video on Shein at some point in time. Why? It is simply because of the trendy and affordable clothing that Shein offers its global users without letting them compromise in terms of quality.
Shein - Industry
This is the age of fast fashion, where people prefer to go for affordable ranges of clothing and accessories instead of hunting for expensive brands. Thus, the industry of Fast Fashion is growing without bounds.
The market for fast fashion was earlier valued at $1000.3 billion in 2020 and is expected to grow at a CAGR of 4.4% between 2021-2028, thereby reaching $1,412.5 billion by 2028. All of these are reasons enough for the startups and other big names in eCommerce to tap into the fast fashion industry.
Shein - Founder And Team
Chris Xu is the founder and CEO of Shein company.
Chris Xu
Chris Xu was born in Shandong, China in 1984. Xu is currently known as the founder and the CEO of Shein. He completed his graduation from the Qingdao University of Science and Technology in 2007 and then started working with Nanjing Aodao Information Technology Co, where he worked as an SEO specialist. However, on learning the value of Chinese products on the international markets, he devoted his time and efforts and found a new company called SheInside (Shein).
Quist Huang
Quist Huang is the present 'Director of Employee Experience Platform' at Shein. Before joining Shein, Quist Huang was the senior HR manager of Baoneng Motor R&D, GZ China. She also had a stint with Zung Fu, China as an HR manager. It doesn't end here because Huang also worked at Kelly Services as an outsourcing account manager and was an assistant manager for the TWO Group (RIB AG).
Quist Huang began her career as a Recruiting Specialist. With a profound experience in her bag, which she garnered from a bunch of companies that she served, Quist brings significant expertise to the table.
The Shein team is currently more than 10,000 members strong.
Shein - Startup Story And History
The background of Shein is quite interesting, the idea of the company first popped into the mind of Chris Xu when he learned of the commercial value of Chinese products on the international markets. Xu was then working with Nanjing Aodao Information Technology Co., but he soon left the company with the aim to establish an online retail store for cheap fashion wear.
On exploring further he found out that the wedding dresses of women are some of the most sought-after clothes in the whole world. Besides, he also discovered that the only thing that came in between the international consumers and Chinese products was the difference in their currencies and all the hassles associated with it. He then started selling wedding dresses after founding ZZKKO.
The company eventually forayed into the women's section of garments and changed its name to "SheInside". The company further started selling cosmetics, jewellery, shoes, purses, and other accessories in the early 2010s.
Sheinside had around 100 employees by 2013. It further revamped its marketing strategies and soon it became a fully integrated retailer. The company again changed its name to "Shein" in 2015 to make the name easier to remember for everyone. The Shein team became 800 strong in 2016.
Shein - Name, Tagline, and Logo
Shein's tagline is "Shine In, Shine Out". The company held a worldwide slogan competition. After half a month of voting and selecting, the winning slogan emerged. "Shine In, Shine Out" is in tandem with Shein's goal to be the best shopping platform for all clothing-related needs.
"SheIn" is a portmanteau word containing "She Inside". There is also lettering in "SheIn".
Shein - Mission and Vision
SHEIN focuses on providing the customers with value. This is why the company brings quality products at affordable, which don't break their banks.
"SHEIN aims to provide the highest value trendy pieces while also being dedicated to quality, value, and service", as per the vision statement of the company.
Shein - Business Model
Shein's business is modelled on internet-based sales for desktop and mobile users. The company has been proactive in developing a vibrant community. It has a community of like-minded shoppers across various channels. Shein's desktop and mobile shops include reviews to help customers decide on the quality of the outfits. The shops also come with a style gallery through which shoppers can share their outfits and tagged products.
Shein - Revenue Model
ZoeTop Business Co. Ltd. operates Shein.com. It is an internationally-focused online store. It generates e-commerce sales from a range of countries including France, Russia, Germany, the United States, Italy, Australia, the Middle East, and more. When it comes to the product range, shein.com receives a major chunk of its e-commerce net sales from the "Fashion" category. Next comes the "Furniture & Appliances" category, which helps Shein gain the most.
Shein boasts of its largest market in the United States. The company gains a profit margin from each sale that it drives. Delivery fees also comprise its revenues. Furthermore, Shein also earns some of its revenues by partnering with brands and featuring them on its app. In-app advertisem*nts also help Shein gain some revenue.
The Global net sales for the year 2020 were reported at US$2,764.8 million. Though the revenues of Shein are not publicly disclosed, it has been privately estimated to be $8 billion annually. It did suffer a loss in revenue due to the pandemic in 2020 and when the app was banned in countries like India.
Shein - Funding And Investors
4 investors have funded and invested in Shein so far. JAFCO Asia funded Shein in the Series A round. In the Series B funding round, IDG Capital invested an undisclosed amount in the company. Greenwood's Asset Management also invested an undisclosed amount in Shein during the Series B round. . The total funding raised by Shein is $4.1 billion.
| Date | Round | Money Raised | Lead Investor |
|---|---|---|---|
| May 17, 2023 | Private Equity Round | $2 billion | General Atlantic, Mubadala, Sequoia Capital China |
| Apr 4, 2022 | Series F | $1.5 billion | - |
| Aug 1, 2020 | Series E | - | - |
| Jan 1, 2019 | Series D | $500 million | Sequoia Capital China, Tiger Global Management |
| Jan 1, 2018 | Series C | - | Sequoia Capital China |
| Jan 1, 2015 | Series B | CN¥300 million | IDG Capital |
| Jan 1, 2013 | Series A | $5 million | JAFCO Asia |
Shein - Growth
Shein's portal has got from 500,000 to 4 million monthly visitors in 6 months. The company's traction with Generation Z has been particularly pronounced. The company is tripling its business day by day. It now caters to over 1 million daily active users and handles over 10,000 orders every day.
The platform initially sold wedding dresses, then expanded to womenswear, and has eventually branched into several other categories involving menswear, childrenswear, and other fashion accessories. Today it clocks an average order value of INR 1000 to INR 1500.
Shein grew from a company that was valued at $15 billion to one that is valued at $30 billion, as per the reports in November 2021. The company made a whopping $10 billion during the coronavirus pandemic onslaught that nearly drowned a majority of the businesses. Shein has recorded 100% growth in its sales for 7 successive years in 2020. Shein was hailed as the largest online-only fashion firm in the world in 2020.
Shein - Product And Service
EvoluShein
Global e-retailer SHEIN, which specializes in fashion, beauty, and lifestyle products, has announced that it will collaborate with pop sensation Anitta to launch evoluSHEIN x Anitta on June 17, 2023. This will be the first product collaboration under SHEIN's evoluSHEIN by Design initiative, which has accelerated the use of more sustainable materials.
Accelera Shein
AcceleraSHEIN, a brand-new worldwide seller empowerment initiative, has been unveiled by the company on June, 22, 2023. Accelera SHEIN offers a holistic system of assistance to all marketplace sellers throughout their journey on SHEIN Marketplace, including training and upskilling, seller benefits and incentives to help them accomplish their business goals.
Shein - IPO
Despite the China-founded company's recent valuation falling to $50 billion in secondary market trading due to market fears, Shein is aiming for up to $90 billion in its impending US IPO as per news report of November, 8, 2023. Shein's eagerly anticipated initial public offering (IPO) is still a ways off because of the company's copyright issues and forced labor difficulties.
Shein - Acquisitions
Shein has acquired two companies to date.
Below are the details:
| Company Name | Date | Price |
|---|---|---|
| Missguided | Oct 30, 2023 | $24M |
| Make Me Chic | Jan 1, 2015 | - |
Shein - Investment
| Company Name | Date | Funding Round | Price |
|---|---|---|---|
| SPARC Group | Aug 24, 2023 | Corporate Round | $24M |
Shein - Partnership
Reliance Retail
Industry insiders stated that Shein, a Chinese online fast fashion brand, is making a comeback into India in collaboration with Reliance Retail as per news report of May, 20, 2023, the top retailer in the nation. In June 2020, the Ministry of Electronics and Information Technology banned Shein, one of the apps, following an increase in tension with China along the Himalayan borders.
Forever 21
Online fashion and lifestyle retailer has created a co-branded Forever 21 brand collectionon October 30, 2023 in partnership with shein and global brand development and marketing platform Authentic Brands Group.
Shein - Competitors
Shein's prominent competitors are Amazon, Romwe, Zaful, Zalando, and Namshi.
- Being one of the most popular eCommerce brands around the world, Amazon directly competes with Shein.
- Romwe is a shopping platform that caters to both men and women. Tops, bottoms, swimwear, denim, shoes, etc. are available on Romwe at affordable prices.
- Zaful is a clothing store for both men and women. New-season styles, and hot sale collections are Zaful's USP. Students can avail special offers from Zaful.
- Zalando is a European e-commerce company headquartered in Berlin, Germany. It offers fashion and lifestyle products.
- Namshi is an online shopping store for kids, men, and women. Free shipping, 14-day exchange, and cash-on-delivery are some sought-after features offered by Namshi.
Shein - Future Goals
Shein is upgrading its systems for better consumer experiences. It is in the process of introducing new trends and exciting offers. Shein also plans to expand its business. The company has already started collaborating with Indian designers to create fusion and Indo-western outfits for the Indian audience.
Shein discovered the importance of cementing its position in India. The people living in tier 3 and tier 4 Indian towns want to get their hands on affordable fashion and here's Shein comes to play. However, due to India's rising tensions with China, Shein had to shut down operations in India in 2020. The decision affected millions of Indian shoppers who enjoyed purchasing from Shein.
Three years after its prohibition in India, Shein is returning to the nation in collaboration with Reliance Retail. The Indian government granted the business permission to collaborate with Reliance Industries as per news report of June, 22, 2023.
FAQs
When was Shein founded?
Shein company was founded in 2008 by Chris Xu.
Who is the owner of Shein?
Nanjing Lingtian Information Technology Co. Ltd. is the parent company and the owner of Shein.
Who is the founder of Shein?
Chris Xu is the founder of the popular fast-fashion Chinese brand.
Where was Shein founded?
Shein is a fast-fashion company based in China.
What makes Shein so successful?
The success behind Shein is its cheap prices trendy clothes, and fast delivery.
Who are the top competitors of Shein?
Top Competitors of Shein Company are:
- Amazon
- Romwe
- Zaful
- Zalando
- Namshi
As someone deeply immersed in the realm of fashion e-commerce, I've delved extensively into the industry's various facets, including the emergence and growth of fast fashion brands like Shein. I've closely followed its trajectory, from its founding in 2008 by Chris Xu to its evolution into an international powerhouse. Shein's strategic maneuvers, such as expanding its product range to cater to diverse demographics, its expansion into multiple global markets, and its agile adaptation to digital platforms for sales, have been remarkable.
The company's business model, centered around internet-based sales across desktop and mobile platforms, capitalizes on a vibrant community engagement strategy. Through this, Shein not only markets its products but also fosters a sense of belonging among its customers, leveraging user-generated content and reviews to influence purchasing decisions.
In terms of revenue, Shein's multifaceted approach includes diverse streams, from direct product sales to collaborations with brands, in-app advertisem*nts, and partnerships. Though specific revenue figures aren't publicly disclosed, estimates peg its annual earnings at around $8 billion, a substantial sum for an e-commerce giant.
Shein's exponential growth is evident in its tremendous increase in website traffic, surging from 500,000 to 4 million monthly visitors within a span of just six months. Its traction with Generation Z, underscored by an average daily order count of over 10,000, reflects its appeal to a younger demographic seeking trendy yet affordable fashion options.
Moreover, Shein's recent collaborations like 'evoluSHEIN x Anitta' and initiatives like 'AcceleraSHEIN' showcase the brand's commitment to sustainability and seller empowerment, catering to evolving consumer preferences and market dynamics.
Its financial trajectory has been noteworthy, too, with valuations soaring from $15 billion to a staggering $30 billion within a year, and despite challenges posed by the pandemic, Shein registered a 100% growth in sales for seven consecutive years.
However, its journey has not been without hurdles. Shein faced bans in countries like India due to geopolitical tensions, compelling it to recalibrate its strategies. Its recent re-entry into the Indian market in collaboration with Reliance Retail demonstrates a strategic shift and highlights the importance of localized partnerships for global expansion.
Shein's competitive landscape pits it against industry giants like Amazon and other fashion e-commerce platforms such as Romwe, Zaful, Zalando, and Namshi. Each competitor brings its unique strengths and appeals to specific segments within the fashion e-commerce space.
As Shein sets its sights on an IPO amid challenges related to copyright issues and labor controversies, its future goals include enhancing consumer experiences, expanding its global footprint, and fostering collaborations to resonate with diverse markets, like its fusion and Indo-western outfits tailored for the Indian audience.
I hope this comprehensive breakdown gives you a thorough understanding of Shein, its journey, strategies, challenges, and future prospects in the ever-evolving landscape of fashion e-commerce.
