Shein, founded by a 23-year-old Chinese man, grew from a small e-commerce site in 2012 to become one of the biggest fashion retailers on the planet. It has grown a loyal following through its online sales, social media advertising, and marketing strategies that leverage celebrities. It has a large international presence and is expanding its offline retail network to connect with customers and boost brand awareness.
Shein has grown by focusing on speed to market and a competitive price point, and has risen rapidly through the ranks of the booming e-commerce industry. Its fast-paced supply chain has earned it a reputation as an accelerator of the fashion industry.
The speed of its manufacturing has helped Shein to compete against other retailers that prioritize quantity over quality, such as H&M. But Shein has been accused of labor abuses and a lack of transparency about its suppliers, while its sustainability initiatives have drawn criticism from consumers and environmental groups.
In the last two years, Shein has invested heavily in supply chain technology and in improving its production methods, particularly in China. It now employs more than 10,000 people in its warehouses and factories, and has four R&D facilities, six logistics centers, and seven customer service locations worldwide.
Shein is a popular shopping destination for teenagers, especially Gen Z shoppers who like to shop trendy clothing at affordable prices. Its clothing ranges are available in a variety of styles, and its shipping time is shorter than that of rivals like Zara.
The company also offers free delivery, which has helped to attract more customers and increase sales. In addition, Shein earns revenue by partnering with brands and featuring them on its app.
To achieve this, Shein has invested heavily in software and other technologies that allow it to gather real-time customer search data and share it with its suppliers. Shein then uses that information to design and produce new products at a rapid pace.
According to Rui Ma, a tech analyst and founder of Tech Buzz China, Shein’s success can be traced back to Xu’s early efforts to develop a competitive supply chain. The company began acquiring factories that specialized in rapid-production and avoiding those that were “mediocre-quality.” Shein also cut out factories that used images to sell their products, which Ma said were “likely to be stolen by competitors.”
With a combination of these techniques, Shein’s growth has been fueled by a focus on speed to market and a competitive price. Shein has also forged partnerships with influencers and celebrity endorsers to build its brand. Influencers who promote Shein on social media can receive a monthly payment in return for their work, enabling Shein to boost its reach and amplify its marketing.
Shein’s popularity has grown by a significant amount over the past few years, and its global sales have grown dramatically since it launched in Europe and the US. It has also grown its marketing reach through viral videos on TikTok and Instagram, where influencers model Shein’s clothes and promote them to their followers.
