Every evening before bed, Anushka Sachan, a 20-year-old student at the University of Hong Kong, grabs her phone and logs into an app. She's developed a nightly routine of doing this, a habit she refers to as "checking in." This app, provided by the Chinese retailer Shein, has become incredibly popular worldwide due to its quick delivery and affordable fast-fashion clothing.
Shein has managed to overtake Amazon as the most-downloaded app in the US, gaining a cult-like following on TikTok. The company, which was originally called ZZKKO and was founded in China in 2008, has set itself apart from competitors like Zara and H&M by producing clothes more quickly and catering to the digital needs of its customers.
During a typical visit to the Shein app, Anushka, like many others, keeps an eye out for opportunities to earn loyalty points. These points can be earned through various activities, such as opening the app, watching live streams, or participating in clothing design competitions. Shein uses these loyalty programs to keep users engaged, just like playing a mobile game.
Despite its meteoric rise, Shein has long remained a secretive company, shying away from media attention. It's unclear who the people behind the company are, but they have amassed a fortune, with shein reaching a reported value of $30 billion earlier this summer.
Shein's popularity has surged due to its quick turnaround times, affordable pricing, and data-driven production strategy. In the fast-fashion market, the company's rivals like H&M and Zara struggle to compete with their large retail stores and broader customer bases that cater to a broader audience, with higher prices. Shein's primary competition comes from companies like Boohoo and ASOS, which have a bigger focus on the internet and tend to offer more affordable options.
Despite these advantages, Shein faces criticism from shoppers concerned about its lack of transparency concerning production processes and how it manages to sell items so cheaply. Experts also point out that the lack of information on the company's sales makes it challenging to verify the business's claims about its market reach and revenue.
Shein's success can be attributed to several aspects that set it apart from traditional fast-fashion retailers. This includes its ultra-fast fashion model, where it leverages real-time data analysis of social media trends to rapidly design, manufacture, and ship new items at breakneck speed. The company's direct-to-consumer model and efficient supply chain also allow it to offer rock-bottom prices, making it a preferred shopping platform for budget-conscious shoppers.
Shein's success can be likened to that of TikTok, where it quickly capitalizes on emerging trends and is able to reach a young audience that other platforms may overlook. As a result, Shein has amassed a massive following and is a credible threat to established giants like Amazon and H&M.
Sources:
[1]
[2]
[3]
[4]
[5]
