An online retailer, Shein has surpassed Zara and H&M as the first super-fast fashion retailer in the United States. How did the retailer do it?
In a new report from Serious research, the online giant began 2021 with a 13% market share of the fast fashion online category in the United States. As of January, the retailer now accounts for 28% of global fast fashion sales. He quickly toppled leaders H&M, Zara, Forever21 and Fashion Nova, which represent 20%, 11%, 10% and 8% respectively.
This rapid rise to the top may not come as a surprise to Gen Z, which has helped push those numbers higher than their rivals, in part thanks to emerging trends. from apps like TikTok. Over the past 12 months, Shein’s sales have grown by almost 160%. On the other hand. the fast fashion industry grew by 15% between January and mid-June in 2021.
Shein (originally known as She Inside) is a Chinese online fast fashion retailer. Founded in 2008 by Chris Xu, it currently serves 220 countries, including Australia, the United States, the Middle East and all of Europe. Known as TikTok for ecommerce, it’s loved by Gen Z for its super trendy clothes and affordable prices. The retailer is estimated to have revenue of nearly $ 10 billion. According to Fashion business, it would experience continuous 100% year-over-year growth for eight consecutive years.
Shein is an outright online retailer that prioritizes its mobile and app, primarily with Gen Z shoppers. Its mobile-first strategy has led the e-merchant to become the most installed shopping app in the United States, crushing Amazon from first place. Shein is currently the second highest ranked shopping app on the App Store in Australia and in the top rankings of 54 countries worldwide.
The app uses the popularity of apps like TikTok and Instagram to connect with potential and loyal buyers, with its ‘lightning-fast’ pieces released daily – rivals like Fashion Nova and Missguided are reportedly posting around 1,000 new articles per week.
There is no doubt that super-fast fashion brands like these are causing serious concern just for the environmental factors. However, Beijing-based analyst Matthew Brennan said Vox that Shein is likely to place initial orders for around 100 items when new models are released. In contrast, competitors like Boohoo and Zara, who would place an initial order of around 300-500.
“Compared to her fast fashion competitors, Shein is able to take more bets, but with less risk. He is able to place very small initial orders to these factories, around 100 or even less, ”he said. That way, if an item goes viral online (likely via TikTok), the retailer can quickly increase the volume of orders in stock to meet the load. In early June, rumors began to circulate that Shein was filing an IPO, but the retailer denied the claims.
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