SHEIN: Redefining Global Fast Fashion
| Case Code: BSTR639 Case Length: 18 Pages Period: 2008-2021 Pub Date: 2022 Teaching Note: Available |
Price: Rs.600 Organization : Shein Industry : Retailing Countries : China Themes: E-Business Strategy, International Marketing, Disruption, |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Business Model
Experts attributed Shein’s success to its aggressive, data-driven, real-time fast-fashion business model that cut the time from design of a new garment to mass production from 2-3 weeks to just 5-7 days. According to Matthew Brennan (Brennan), a tech analyst, “Real-time fashion refers to the model that Shein’s developed whereby you’re in the Shein app, and you put something in your cart. When they upload a new item, they can actually update the systems that they have in the back end..
Results
According to analysts, the COVID-19 pandemic boosted sales of online retailers, giving online-only players, such as Shein, an edge over fast fashion giants such as Zara and H&M that had big physical stores. The pandemic proved to be a huge boon for Shein as it spurred annual sales in 2020 to almost three times that of the previous year. Shein’s sales rose 250% year-over-year to a staggering US$10 billion, up from US$4.5 billion in 2019. Reportedly, it generated about US$10 billion (RMB63.5 billion) in revenue in 2020, which was reportedly its eighth consecutive year of revenue growth over 100%..
Challenges
Going forward, one of the biggest challenges for Shein would be to continue selling to a global audience without a physical presence in individual countries and an understanding of the local culture. Moreover, sustaining its position in a crowded fast fashion market where Zara, H&M, and ASOS had a strong presence would be a tough task for it, felt analysts. Also, emerging apparel retailers such as Fashion Nova and Boohoo had begun to target young female shoppers with affordable items, similar to Shein..
Exhibits
Exhibit I: Fast Fashion Market Share (US) (June, 2021)
Exhibit II: Shein Investor Funding
Exhibit III: Shein’s Prices vis-à-vis Competitors’
Exhibit IV:
The Favorite Shopping Websites of Upper-income US Teens (Fall 2020)
Exhibit V: The Most Talked about Brand on YouTube (2020)
Exhibit VI: Leading Brands on TikTok Worldwide in 2020, by Number of Influencers (in 1,000s)
Exhibit VII: Shein vs. Amazon (Estimated downloads App Store + Google Play)
Exhibit VIII: 2021 Q1 Sales* (Worldwide, Online and Offline)
Exhibit IX: Shein US Sales Growth (March 2020-April 2021)
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