<you have to work hard quietly and amaze everyone."this sentence is perfect to describe shein
the latest round of financing valuation of this fast fashion clothing cross-border e-commerce soared from about 96 billion yuan to more than 300 billion yuan, and it is reported that Shein will have an IPO in the near future
yesterday, relevant concept stocks rose sharply affected by this. TEDA shares, Jiuqi software, Antarctic e-commerce and xunxing shares rose by the limit, which was worth buying. Jiawo shares rose by nearly 18%.
Shein has been unknown in China. If it were not for the sharp rise in the latest valuation and the news of IPO, it would still be a little transparent in the eyes of investors. In fact, Shein is only low-key. In the venture capital circle, it has been recognized by many well-known VC / PE Institutions in China, such as Jifu Asia, IDG capital, Jinglin investment, Sequoia China, etc. are the investors behind Shein.
in foreign countries, Shein has become a popular e-commerce platform. According to app Annie and sensor tower, as of May 17, Shein ranked first among IOS shopping apps in 54 countries / regions, first among Android shopping apps in 13 countries / regions, and even surpassed Amazon, a foreign established e-commerce giant.
in 2020, Shein's revenue was nearly US $10 billion, with more than 100% growth in revenue for eight consecutive years and more than 20 million users. The reason for such rapid development is that Shein has achieved the extreme of fast fashion mode and grasped the outlet of cross-border e-commerce.
achieve the ultimate fast fashion mode
when it comes to fast fashion, the first reaction of consumers is cheap, many styles and fast. Shein has achieved the ultimate in these points.
the prices of products on Shein's website range from $2 to more than $70, but most of the prices are concentrated in the range below $20. Zara's prices are mostly $30 to $40. American college students once posted their shopping list in Shein on social networking websites, with 16 items, totaling $108. Cheap and low prices also give Shein a considerable advantage in the repurchase rate.
in terms of style, Shein's richness is also amazing. Last year, Shein's new SKUs were 260000 and Zara's new SKUs were 75000. You know, in the field of fast fashion, Zara has always been famous for its fast new speed and diverse styles. The new SKUs on Shein can reach 3.5 times that of Zara.
always following the trend quickly is the essence of fast fashion, but it also has very high requirements for the supply chain. When Zara can finish making clothes and send them to stores within 14 days at the fastest, Shein only takes 7 days. Zara follows the trend after it comes out, while Shein collects all kinds of trend information in advance, and then produces a small number of products at low cost for market test feedback, which also greatly improves the probability of Shein's success , further improve the user stickiness of Shein. In addition, fast supply and fast sales have also reduced Shein's inventory pressure
Dongfeng of cross-border e-commerce
looking at the sales of Shein in recent years, we can find that Shein has increased significantly in recent five years. Last year, affected by the overseas epidemic, Shein's cross-border e-commerce business ushered in an outbreak, with revenue of nearly $10 billion
in contrast, established fast fashion brands such as Zara, H & m and UNIQLO have shown a decline in recent years. In fiscal year 2020, the revenue of INDITEX group, the parent company of Zara, decreased by 27.9% year-on-year to 20.402 billion euros; the net profit plunged by 69.6% to 1.106 billion euros; the net sales of H & m decreased by 18% to 1.87 billion SEK, and the pre tax loss reached 1.39 billion SEK; UNIQLO's sales reached 2 trillion yen, a year-on-year decrease of 12.3%, and the net profit fell sharply by 44.4% to 90.3 billion sek Yen
the epidemic has undoubtedly had a huge impact on the business of overseas offline stores of traditional fast fashion brands. Previously H & M group said that as of January 27, 2021, about 1800 stores had been temporarily closed due to the COVID-19, equivalent to 36% of the total. In the middle of last year, Zara's parent company also announced plans to close 1200 stores in the next two years, accounting for 16% of the total number of stores
in recent years, the impact of online e-commerce business on fast fashion has been very obvious in China. Many fast fashion brands, such as Forever 21 and Topshop, have announced their withdrawal from the Chinese market. But in foreign countries, the penetration and maturity of online e-commerce are far less than that of China. To some extent, the outbreak of the COVID-19 has accelerated the market education on online e-commerce services for foreign consumers, and also enabled China's cross-border e-commerce to achieve great growth in the past year
customs data show that China's cross-border e-commerce import and export reached 1.69 trillion yuan in 2020, an increase of 31.1%. Among them, the export was 1.12 trillion yuan, a year-on-year increase of 40.1%; Through the customs cross-border e-commerce management platform, 2.45 billion import and export bills were checked and released, an increase of 63.3% year-on-year. Shein also undoubtedly enjoys the dividend of rapid growth of cross-border e-commerce
when the fast fashion model is becoming less and less popular, Shein has made full use of the advantages of this model with the help of cross-border e-commerce. The impact of the epidemic on foreign consumer markets continues, and the habit of online consumption will become more and more deep-rooted. However, there are still geopolitical frictions in international trade from time to time. Shein has been banned by the Indian government before. Whether the Chinese version of Zara can continue to grow at a high speed remains to be tested by time