Why SHEIN Has Become So Much Popular In Australia?
SHEIN is now one of the popular online businesses selling fast-fashion retailers that work together with thousands of manufacturers to churn out new clothing designs quickly. SHEIN is headquartered located in Nanjing, China. The mastermind and founder are Yangtian Xu (also known as Chris Xu), Xiaoqing Ren, and Yang Pei started SHEIN in 2008.
SHEIN has not disclosed its ownership structure, but it can be assumed that founder and CEO Chris Xu remains one of its largest shareholders.
It’s astonishing how SHEIN became so successful in Australia, seemingly out of nowhere. According to Euromonitor. , it is now the world’s largest online-only fashion brand. But how did it become popular, and how did SHEIN profit from it? This is something we’ll try to explain in this piece.
Read More: Ray-ban Smart Glasses With Cameras Are Getting Popular >>
SHEIN provides a wide range of apparel options. It’s not just about dressing up for special occasions or work; it’s also about developing your own personal style and experimenting with different ensembles on a daily basis.
SHEIN is the place to shop for stylish, inexpensive apparel that will make you look and feel wonderful!
One of the main reasons SHEIN is becoming popular among young people is its business approach, so what is it that has made them so famous?
Business Model of SHEIN
SHEIN buys the products in bulk and sells them all around the globe. But this is not a new business model, it has been used by many entrepreneurs and online businesses but still why SHEIN is much more than others?
It is because SHEIN accumulates data rom a variety of sources, such as Google Trends, social media hashtags, or by monitoring its competitor’s website, to figure out what’s currently trending. An internally hundreds of fashion designers in SHEIN converts that data in the fashion.
SHEIN then sends the order to the manufacturers from their websites. Each supplier has its own account on its internal platform of SHEIN. They can check current sales and stock levels and even bid on manufacturing a new set of products.
Read More: Why 5G network is taking over 4G? – Tech >>
Since SHEIN directly work with manufacturers, they can produce new designs within or less than three days, which normally takes one week or more for other suppliers. Then, SHEIN then tests how well those designs perform within its online storefront. Once they feel they will get the best out of it, they roll to a wide range of supplies to meet the existing demand.
SHEIN also utilizes various marketing techniques such as countdown timers, subscriber discounts, trending stickers, and more to excite customers to make impulsive purchases.
Why SHEIN is Successful?
- SHEIN’s influencer marketing technique is excellent. Though it is identical to other companies, Tiktok’s new generation of girls seized it by storm.
- This type of arrangement allows the business to expose itself to new audiences through its fashionable, trendy clothing while also providing numerous tiny influencers with the opportunity to obtain free products in exchange for their comments and social media visibility.
- SHEIN regularly offers discounts. Discount for using an influencer, and a discount for installing the app as well. Many Customers are attracted to the discounts offered on branded clothes.
- SHEIN’s prices are lower than those of other quick fashion brands. Because of penetrative pricing. SHEIN was able to develop fast by producing a significant quantity of each item, allowing the brand to grow in volume and further reduce prices.
How much Money SHEIN is making?
In 2021, the Company was able to generate about 15.7 billion in revenue according to the reports in Reuters. In 2020, it was able to make 5 billions. SHEIN is currently being valued at $100 billion by the same investors after raising $1.5 billion in Series F funding in April 2022 which will be more than ZARA and H&M combined.