On the 202 Chinese mainland 2 rich list released by Forbes, Xu Yangtian entered the list for the first time and surpassed Meituan Wang Xing, Jingdong Liu Qiangdong, Xiaomi Group Lei Jun, Baidu Li Yanhong and other Internet bigwigs with a net worth of 10 billion US dollars, ranking 25th.
Who is Xu Yangtian?
In 1984, Xu Yangtian was born in Zibo, Shandong Province, to a rural family with very modest conditions. He graduated from Qingdao Institute of Technology in 2007. Majored in Computer Technology. Started out not interested in fashion. Thanks to the computer major, he began to get involved in cross-border e-commerce and engaged in the e-commerce industry of transnational wedding dresses.
Always low-key, he rarely appears in public, has never been interviewed by the media, and is not well known to the outside world.
SheIn related to him focuses on the European and American markets, and the founder team rarely appears, and SHEIN rarely appears in the public eye and media reports.
But in the field of cross-border e-commerce, Xu Yangtian is a legend that everyone knows and everyone knows, leading the company SHEIN to expand rapidly in overseas markets in recent years.
According to the "2022 Mid-2022 Global Unicorn List" released by the Hurun Research Institute, SHEIN from Guangzhou ranked the fifth largest unicorn company in the world with 400 billion yuan.
After Douyin, SpaceX, Ant Group, and Stripe, it ranks fifth in the world.
A management briefing presented by SHEIN to investors showed that the company's revenue in 2022 reached US$22.7 billion, GMV was US$29.4 billion, and net profit was US$700 million, equivalent to more than RMB4.5 billion, which has been profitable for four consecutive years.
MYSTERIOUS SHEIN, IN FRONT OF WHAT MOST PEOPLE BEGIN TO UNWRAP
SHEIN was founded in Nanjing in 2008 by Xu Yangtian, who had just graduated from university.
It started as a wedding dress sales platform, taking advantage of the dividend period of Google and Facebook advertising traffic at that time to complete the initial accumulation.
In 2010, it began to be promoted on foreign social media, and the price was relatively low.
In 2012, the platform represented by Google and Facebook, its advertising costs began to rise, SHEIN chose to promote in ins, seized the dividends of INS development, accumulated a lot of data. Subsequently, SHEIN gradually changed its model, abandoned the original wedding dress business, formally established Shelnside, and fully transformed into cross-border women's clothing.
The year Sheinside did cross-border women's clothing, the cross-border e-commerce market was in a chaotic and disorderly era, empty bags, cottages, and mismatched goods, etc., and the law of bad money driving out good money played its effect, many sellers who did serious trading lost money, while sellers engaged in abnormal trades made a lot of money.
In 2013, Jifu Asia raised a series A financing of 5 million US dollars and began to build a clothing supply chain system.
In 2015, SHEIN opened the company to Panyu, Guangzhou, relying on the world's largest garment textile market, backed by the garment processing base in Panyu Nancun Town, to explore a new model in the production supply chain, small orders and quick returns, forming its own ecological barriers. And establish a supply chain center, build a supply chain system, start independent research and development design, and build a warehousing system. In May, the branding was officially launched, and SHEIN's new domain name and APP were put into operation at the same time; In June, the company completed a series B financing of 300 million yuan, with IDG and Jinglin Capital, and its valuation rose to 1.5 billion yuan.
In 2018, SHEIN received hundreds of millions of dollars in Series C financing from Sequoia China Heshun Capital to raise the company's valuation to US$2.5 billion.
In 2019, SHEIN received another $500 million Series D financing led by Sequoia China, Tiger Global and IDG, doubling the company's valuation in an instant.
IN 2020, SHEIN RECEIVED ANOTHER HUNDREDS OF MILLIONS OF DOLLARS IN SERIES E FINANCING, AND THE COMPANY'S VALUATION SOARED TO $15 BILLION;
In 2022, SHEIN received at least $1 billion in Series F funding led by Transatlantic Capital and co-sponsored by shareholders including Tiger Global and Sequoia China. After that round, SHEIN's valuation reached $100 billion.
So what are SHEIN's core competencies?
SHEIN is known as the "overseas version of Pinduoduo", using four words to describe its advantages, that is, "how fast new province", that is, more categories, new fast, new style, low price.
To do this, the advantages of the supply chain are essential.
It is reported that SHEIN has established a very complete supplier assessment and rating system, through its own management software, share real-time customer data with suppliers, and use this to guide the design and management of the production process, far more efficient than peers. More than 1,000 suppliers have established cooperation with SHEIN, of which about 300 are stable. Every day, dozens and hundreds of suppliers line up in front of the SHEIN building to negotiate cooperative supply;
The main model of SHEIN's supply chain is small order fast return, characterized by personalization, small batches, multiple batches and fast delivery, relying on this model of mass labor garments, SHEIN has created the world's top delivery speed.
Flexible supply chain, to put it bluntly, is small and beautiful, fully call the function of small workshops, hundreds of goods list, two or three days when the supplier can deliver in a hurry. It is also because these small orders are extremely flexible and inventory costs can also be minimized.
At the same time, SHEIN created a containment model, placing 300 core suppliers in an area two hours from headquarters.
With such an advantageous supply chain, SHEIN is concentrated in the market
Nearly 6,000 new products are added every day, a speed that is unique among peers.
In addition, the low-price strategy is also carried out to the end, SHEIN's best-selling clothing styles are priced in the price range of $5 to $25, while the same type of fashion brands are concentrated between $20~300; Such low-priced goods have greatly won the purchase favor of overseas consumers;
SHEIN is more like a digital connection
Integrated e-commerce companies with upstream suppliers and front-end e-commerce systems;