The fast fashion market is unpredictable, once Zara dominated the world, asOS spent more than $400 million to buy Topshop in 2021, but this year Shein, a brand from China, is planning to raise $1 billion at a valuation of $100 billion. If successful, Shein's value will be comparable to zara and H&M combined. Shein's popularity reflects that for Generation Z, fast fashion is a gift, but this brand that is not well known in China can break out of the world in the world, and even break through in the fiercely competitive market?
Will Zara be defeated? Shein's $100 billion valuation behind the 3 reasons fast fashion competition is fierce, if the operating model, products and routes are not innovative, it will go to the end, Top Shop is a good example. After Asos, Shein in China quickly became the favorite fast fashion brand of the new generation of Tik Tok. Shein is in talks with investors for a round of funding that could be worth $100 billion, roughly equivalent to the sum of H&M and Inditex (Zara's parent company). Why? 1 cheap to the extreme, as low as 19 yuan a piece of tea! Chinese entrepreneur Chris Xu founded the brand Sheinside with his peers in 2008 to sell wedding dresses online. After 5 years, the name was simplified to Shein (pronounced She-in "Xiyin"). The brand mainly targets consumers in the United States, Europe and Australia, and its products include cheap waist-up tops, bikinis and dresses, with prices as low as 20 yuan a men's tee and women's clothing of 17 yuan, becoming one of the important players in the field of fast fashion.
20 yuan a vest
During the U.S.-China trade war, when tariffs were imposed to make Chinese products more expensive, low-value goods were still exempted to remain competitive, nearly doubling Shein's sales from 2018 to 2019. Then, as the pandemic led to an increase in shoppers trapped at home, sales to the brand grew 250 percent year-over-year to a staggering $10 billion, far more than Zara generated through its online channels last year.
17 yuan women's tee
2 Instagram has 240 million followers, driving sales with influencers As her customers are mostly Gen-Z generation, Shein actively uses influencers to drive sales, gathering more than 250 million followers on IG and Tik Tok social media platforms. Brands encourage users to wear brand clothes and take photos of Shein's account on the tag, and the account reposts the photo, creating a social media chain effect, and offering multiple discounts to fans, which make the product sell higher.
The brand encourages users to wear the brand's clothes to take a photo and forward it to the official account
Shein has also collaborated with a number of prominent individuals to create synergies. The brand's training program "Shein X" held a young designer competition, offering $100,000 in prize money and awards for the fashion collection, and the judges included fashion designer Christian Siriano and celebrity Kloe Kardashian to enhance the brand's image.
From time to time, we cooperate with influencers to live stream the goods activities
3 More than 600,000 items, new items on the market every day, and diversified sizes In order to create a large number of products and styles at a faster speed, competing with other fast fashion brands such as Asos and H&M, Shein has hired more than 200 in-house designers to provide more than 600,000 items on the online store, and to ensure that new items are constantly on the market, making people want to pay attention to new goods every day.
Plus size women's wear
In addition, the brand offers a wide range of sizes, offering large sizes of fashionable women's clothing, so that women with a plump body can also find their clothes. At the same time, the brand also sells low-cost household items, challenging Zara and H&M's homewares divisions across the board.
Household items are provided
Critics always like to say that Gen-Z is very passionate about sustainable development, so it does not love fast fashion, but it turns out that the human body is still very honest. Compared to Asos, the lower-priced Shein does a more questionable job of environmental protection, but it has a lot of Gen-Z support – have you ever bought Shein?