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Affected by the epidemic, many ports in the world are experiencing deadly congestion, and freight rates on Asia-Europe routes continue to rise. Cross-border sellers are even saying that the start of 2021 is "difficult, difficult, difficult". However, under the circumstances where the COVID-19 epidemic situation is still very serious, there is a cross-border e-commerce company whose assets are not only not affected by the epidemic, but are even continuing to rise and expand. It is China's largest cross-border fast fashion company - SHEIN.
▲ The picture comes from SHEIN official website Before 2020, when it comes to SHEIN, most e-commerce sellers are clueless. But when SHEIN emerged in 2020 and frequently appeared in the public eye, it was already a large company with a valuation of 15 billion US dollars. It was also " ambitious " and was moving towards its desired development vision - "creating a world-class fast fashion brand platform." In recent days, according to people familiar with the matter, SHEIN made the highest bid in the bidding process of British fashion retail giant Arcadia Group. Not only that, not long ago, SHEIN also became the lead investor in Outer, an outdoor home brand in the United States that mainly uses the DTC model, which increased its sales by more than 10 times in just one year during the epidemic. How did SHEIN achieve such success today? First, let’s take a look at its development history . SHEIN was founded in July 2008, focusing on women's fast fashion. It mainly sells clothing, cosmetics, accessories, shoes and bags and other products to overseas consumer markets such as Europe, America, Australia, the Middle East and India. It started its brand in 2014, began to obtain investment from top institutions in the industry in 2015 , and carried out financing expansion. In 2016, it positioned itself as a "cross-border fast fashion Internet company" and began to flourish. ▲ The picture comes from SHEIN official website As of April 2020, SHEIN's business has covered more than 220 countries and regions around the world, with daily shipments reaching more than 3 million pieces. In 2020, SHEIN also received a Series E financing with a valuation of over US$15 billion. ▲ The picture comes from LatePost As of December 2020, SHEIN disclosed its 2020 company performance, with revenue of nearly US$10 billion (approximately RMB 65.3 billion), achieving the eighth consecutive year of revenue growth of more than 100%. Currently, SHEIN is the largest fast fashion cross-border e-commerce company in the country . From being a brand that no one knew anything about in the past to now becoming a well-known brand among cross-border sellers, SHEIN's development speed in recent years can be described as quite amazing. So, what has it relied on to win the favor of top institutions in the industry and achieve such rapid development in recent years? The secret of SHEIN's rapid development Early accumulated traffic dividends
SHEIN caught up with the marketing opportunities before the commercialization of Internet celebrities. As early as ten years ago, SHEIN had already started to choose to cooperate with overseas Internet celebrities, and won amazing traffic dividends at that time at a low cost (such as giving Internet celebrities a few pieces of branded clothes in exchange for comments). At the same time, SHEIN is also very good at using social media to attract traffic. The company opened official accounts on overseas social media such as Instagram, Facebook, and Youtube very early, and the number of fans has become very large. Taking Instagram as an example, SHEIN currently has more than 16 million fans on the platform. Strong supply chain supportAfter obtaining financing and expanding its scale, SHEIN has been working hard to build and upgrade the back-end supply chain ecosystem. Today, SHEIN has more than 300 garment suppliers and has cultivated at least 100 suppliers of fabrics and accessories. In addition, SHEIN has developed a set of supply chain information systems for different supply chain links. Today, SHEIN has basically built a back-end supply chain ecosystem, with three major departments: product center, supply chain center, and system R&D center. Among them, the supply chain center team has more than 5,000 employees in 2019. The SHEIN model of supply chain has also become an excellent model that cross-border sellers are vying to imitate. Super fast product launch speed and attractive low price strategyTo some extent, SHEIN can be regarded as a DTC brand, that is, SHEIN adopts a marketing model that directly faces consumers, which can remove the cost price and achieve "faster product launch" and "cheaper prices". According to data, in the second half of 2020, SHEIN, with its strong supply chain, can produce an average of 2,000 new models per day in the women's clothing category alone. The above are some of the secrets to SHEIN’s successful development that the editor learned through some information investigation. So, what can sellers learn from SHEIN’s success story? 1. Seize the traffic dividend of social media platforms Today we are in a digital age, and social media has become one of the most effective marketing platforms. It would be a very wise move to seize the traffic dividend of social media platforms and convert it into the company's private domain traffic. 2. Build your own supply chain This will undoubtedly be a very time-consuming move, but judging from SHEIN's development history, the benefits will be considerable. Moreover, if sellers know how to learn SHEIN's supply chain establishment model, SHEIN spent ten years to build supply chain capabilities, and latecomers may need less time. This is the change that has taken place in China's supply chain in the past five years, and it is also a huge opportunity for new brands to grow rapidly. Do you know anything else about SHEIN's secret to success? Feel free to share in the comments section~ Part of the content of this article comes from Ebrun, LatePost, and Luxe.CO. Text✎ Shuangmu/ Statement: The title and original text of this article shall not be modified when reprinting, and the source and original link shall be retained
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