Chinese ecommerce giant Shein has experienced a meteoric rise in the U.S. fast fashion market, with its sales and market share overtaking competitors such as H&M, Fashion Nova, Forever 21, ASOS, and Zara during the COVID-19 pandemic. Using U.S. consumer spending data, we analyzed how Shein’s U.S. sales have boomed over the past few years, as well as how other fast fashion companies have fared.
Shein has accounted for a growing percentage of fast fashion market share in the U.S.
Shein’s growth skyrocketed in early 2020, with the company’s U.S. sales roughly doubling between March and April of that year. ASOS and Fashion Nova—both digitally native fast fashion companies—also experienced some sales growth during this time, with respective increases of 13 percent and 7 percent. By contrast, sales at the omnichannel merchants—H&M, Zara, and Forever 21—declined as shelter-in-place orders went into effect. It is worth noting that Bloomberg Second Measure’s U.S. consumer spending data only observes sales through each company’s own website or stores. International spending, as well as purchases through gift cards, financing, or third-party retailers (such as Forever 21 sales made through J.C. Penney) are excluded from our data.
On a year-over-year basis, Shein was the only fast fashion company in our analysis that experienced U.S. sales growth in November 2022, with an increase of 9 percent. Sales at ASOS declined 2 percent year-over-year, while both H&M and Zara declined 10 percent. Fashion Nova and Forever 21 also experienced negative U.S. sales growth year-over-year, with respective decreases of 25 percent and 26 percent. Notably, these companies all held sales in late November around Black Friday and Cyber Monday.
In addition, Shein has captured an increasing percentage of U.S. fast fashion market share over the past three years. In January 2020, shortly before the onset of the COVID-19 pandemic, Shein earned 12 percent of U.S. fast fashion sales. In November 2022, Shein accounted for 50 percent of sales among these fast fashion competitors. That same month, the U.S. share of sales was 16 percent for H&M, 13 percent for Zara, 11 percent for Fashion Nova, and 6 percent for Forever 21. ASOS had the lowest share of U.S. fast fashion sales, with 4 percent.
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. In April 2022, Shein closed a funding round that valued the company at $100 billion.
Most sales at H&M, Zara, and Forever 21 still come from the retail channel
While Shein and ASOS operate entirely online and Fashion Nova has a very limited retail presence, the other fast fashion competitors in our analysis see a mix of online and retail sales. For H&M, Zara, and Forever 21, most sales took place online at the height of pandemic lockdowns, but then returned to retail by that summer.
For the first 11 months of 2022, the average monthly percentage of online sales was 26 percent at Zara, 25 percent at H&M, and 21 percent at Forever 21. The fast fashion companies also saw an uptick in their share of online sales each November, likely in part because of Cyber Monday. In November 2022, 34 percent of sales at each of these companies took place online. Forever 21, which filed for bankruptcy in late 2019 and shuttered nearly 200 underperforming stores, has also reportedly started relaunching new, smaller stores with more curated merchandise to reflect local shoppers’ demand.
To learn more about the data behind this article and what Second Measure has to offer, visit https://secondmeasure.com/.
As an expert in the field of retail and e-commerce trends, I've closely followed the meteoric rise of Shein in the U.S. fast fashion market, particularly during the COVID-19 pandemic. The evidence supporting Shein's dominance is evident in the robust sales and market share data presented in the article from Second Measure, dated January 5, 2023. The comprehensive analysis utilizes U.S. consumer spending data, providing a nuanced understanding of Shein's growth trajectory compared to key competitors such as H&M, Fashion Nova, Forever 21, ASOS, and Zara.
The data reveals a significant surge in Shein's U.S. sales, outpacing competitors during the pandemic. In early 2020, Shein's sales doubled between March and April, showcasing an impressive growth trajectory. This period coincided with declines in sales for omnichannel merchants like H&M, Zara, and Forever 21, reflecting the impact of shelter-in-place orders. It's important to note that the analysis focuses on sales through each company's website or stores, excluding international spending, purchases through gift cards, financing, or third-party retailers.
The year-over-year comparison for November 2022 further solidifies Shein's dominance, with a 9 percent increase in U.S. sales. In contrast, competitors like ASOS, H&M, Zara, Fashion Nova, and Forever 21 experienced varying degrees of negative growth during the same period, with Fashion Nova and Forever 21 facing significant declines of 25 percent and 26 percent, respectively.
Shein's remarkable ascent is underscored by its increasing share of the U.S. fast fashion market over the past three years. Starting at 12 percent in January 2020, Shein's market share surged to an impressive 50 percent in November 2022. This growth far outstripped its competitors, with H&M, Zara, Fashion Nova, and Forever 21 holding comparatively smaller market shares during the same period.
Shein's strategic marketing targeting Gen Z consumers, coupled with a focus on social media influencers on platforms like Instagram and TikTok, has played a pivotal role in its success. The company's valuation at $100 billion after a funding round in April 2022 further attests to its market dominance and investor confidence.
The article also sheds light on the sales channels utilized by different fast fashion companies. While Shein and ASOS operate primarily online, others like H&M, Zara, and Forever 21 have a mix of online and retail sales. Notably, for H&M, Zara, and Forever 21, the majority of sales initially took place online during pandemic lockdowns but transitioned back to retail as restrictions eased. The data also highlights the impact of Cyber Monday, with an uptick in online sales for these companies each November.
In conclusion, Shein's rapid ascent in the U.S. fast fashion market is substantiated by robust data and trends outlined in the Second Measure article. The company's ability to adapt to changing consumer behaviors, leverage online platforms effectively, and secure a substantial market share positions it as a formidable player in the industry.
