SHEIN solidifies lead over Amazon in fast fashion
The biggest clothing seller in the world is not Amazon, AliExpress or Walmart. According to the latest PYMNTS vendor rankings of shopping apps, the enigmatic brand SHEIN is number one, continuing the fascinating story of how SHEIN transforms fashion trends into large-scale transactions.
See also: New ranking of shopping app providers shows big changes in just one month
Resourceful rivals are doing their best to level the apparel economy in favor of SHEIN’s hard-to-duplicate global fast fashion model, similar to brands like H&M, UNIQLO and Zara.
Pronounced “she-in”, SHEIN is the brainchild of Chris Xu, who founded the company in 2008 in China and quickly leveraged its global manufacturing and logistics capabilities to transform runway looks in weeks, to an affordable price for fashionable buyers.
There has always been a hint of mystery around SHEIN, and there still is.
On February 16, Reuters reported that “China’s Shein is aggressively expanding its Singapore office after making a Singaporean company its de facto holding company, according to people with knowledge of the matter and a Reuters analysis of documents filed by the online fast fashion retailer.”
Reuters added that last year, SHEIN “delisted its main business, Nanjing Top Plus Information Technology Co Ltd,… Singapore-registered Roadget Business Pte, which lists Xu and three others as its representatives, was established in 2019 and since late 2021 has been the legal entity operating SHEIN’s global website,” according to the filings.
It is too early to know what impact the address change will have on SHEIN’s operations. What is clear is that SHEIN leads the fast fashion pack with its approach to inexpensive influencer fashion.
Bloomberg reported on Dec. 1 that “as the pandemic accelerated the decline of brick-and-mortar retail last year, Shein brought in $10 billion in revenue, according to people familiar with its operations — long before, for example, Zara’s online sales, he also enlisted Katy Perry and Lil Nas X for promotions and launched a Project Runway-style online fashion contest, with judges including Khloé Kardashian and celebrity stylist Law Roach.
SHEIN also began offering buy-it-now, pay-later services through Klarna in 2020, making its affordable fashions even more accessible to young people, the company’s primary shoppers.
Read more: H&M sells other fashion brands on its website to better compete
Be a fashion amazon
In an analysis of China’s controversial fast fashion sector conducted with non-profit journalism Rest of World, The Guardian reported in December that SHEIN “was founded in 2012 as SheInside, and reportedly began by selling overseas wedding dresses from its first headquarters in China’s Nanjing city.Anonymous spokespersons denied the wedding dress’s debut.
Regardless of its origin story, SHEIN is shaking up competitors from Amazon to Zara with its well-orchestrated supply chain management and ability to create on-trend new looks.
SHEIN operates “a sprawling online marketplace that brings together approximately 6,000 Chinese garment factories. It unites them with proprietary housekeeping software that gathers near-instantaneous information about which items are pass or fail, allowing Shein to order new inventory virtually on demand. Designs are commissioned through the software – some original, others chosen from existing products from factories,” wrote The Guardian.
You can like: Zara Parent Inditex continues its digital transition and plans 30% e-commerce in 2024
The secret sauce
Rest of the World found that from July to December 2021, SHEIN added “between 2,000 and 10,000 individual styles to its app every day”, using a system called “Large Scale Automated Testing and Replenishment (LATR)” which identifies top sellers and does more, with messages to match.
It’s SHEIN’s secret sauce – no stores, no catwalks, no famous designers – just factories ready to produce any young fashion on social media day to day.
In a February interview with Slate, Rest of the World investigative reporter Louise Matsakis said, “The normal pattern that I think we all know is that Zara will go to fashion week in Milan or New York. York and they’ll see what’s trending on the runway, and then they’ll come up with a season based on those trends. Shein isn’t driven by any of that. Instead, they listen to what people are watching on social media, and everything is data driven.”
SHEIN is eyeing an initial public offering in 2022. As PYMNTS reported in January, “Chinese fashion retailer SHEIN is exploring a U.S. public listing again later this year, while founder Chris Xu plans to become a citizen. of Singapore to help it circumvent proposed tighter restrictions on offshore initial public offerings (IPOs) in China.
Related News: Report: Shein is likely to go public in the US later this year