1. Brief Introduction
SHEIN started in China. The parent company was Nanjing Xiyin E-commerce Company founded by Xu Yantai in 2008 and changed to the SHEIN model in 2015. Nowadays, it has crossed the Pacific Ocean and has grown rapidly centered on the United States. There are many big capitalists who are optimistic about blessing, and the enterprise value is more than 15 billion U.S. dollars. Bloomberg magazine in the United States introduced its growth under the title of “Fast Fashion King”. SHEIN’s revenue in 2020 is close to 10 billion U.S. dollars, and it has grown at an annual rate of more than 100% in the past 8 years.
For “Generation Z” Americans, most people don’t know that SHEIN is a Chinese-originated company, but they are obsessed with this ultra-fashionable youth popular app. In 2021, SHEIN has surpassed Amazon to become the most downloaded shopping app in the United States. Its fashion online shopping traffic surpasses Nike and ZARA, ranking first in the world. The average time of customers staying on the WEB is 8 minutes and 36 seconds, making it the first in the United States clothing website.
2. How to attract generation Z youth?
The characteristic of SHEIN is that it is positioned in the Z generation group, establishes a fast fashion label, and tracks and captures the eyes of the target customer group. There are two main methods:
The first is the density of customer experience (UX). More than 3,000 new products are launched every day. With an overwhelming number as an explosion point, it demonstrates its overwhelming advantage at an ultra-low price. Teenagers can quickly complete browsing transactions and achieve a convenient and satisfying purchase experience. . The main customer group is teenagers from 10 to early 20s. Their satisfaction is very high. SHEIN has become an APP that most of them open every day. SHEIN is therefore known as the “digital fast fashion”.
The second is the overwhelming platform “digital marketing” system. In 2019, the number of platform communications was 3240 on Instagram, 2456 on Facebook, and 1936 on Twitter. Popularity on various platforms continues to remain high. TikTok is recognized as the hottest fashion brand in 2020. As of August 2021, on Instagram, the number of fans on the official website has increased to 21.42 million.
Not only to promote on these first-line SNS platforms, they also teamed up with KOL fashion figures to speak up, signed contracts with powerful fashion influencers such as Addison Rae, Katy Perry, Lil Nas X, and used KOC (Key Opinion Customer) to make digital marketing methods to occupy multiple fashions and constantly gains new customers.
3. What are the characteristics of their supply chain?
SHEIN uses the SNS platform to collect data, and also uses Google to cooperate to carry out trend analysis. It uses artificial intelligence technology in product planning and design. More than 3000 new products are launched every day, and all products are produced with MOQ 100 PCS one design.
Guangzhou, known as the world’s custom clothing factory, is the production base of SHEIN. They have almost 300 cooperative factories in Guangzhou. These factories have installed specific SCM systems and basically realized the C2M (Consumer to Manufacturer) model. If the products launched are sold well, The system will automatically enter inventory adjustments and production orders, and the digitally connected cooperative factories immediately begin to increase production.
What’s amazing is that SHEIN abolished the designer concept and fully utilized the big data quick response system. The shortest expected supply chain response was 3 days, while the shortest for ZARA was 2 weeks, and the boohoo needed 1 week. Perhaps because of such a fast pace, the SHEIN supply chain model is called “real-time fashion.”