In the context of increasingly fierce competition in the global consumer market, SHEIN, as a cross-border fashion retailer in mainland China, is increasingly influencing and penetrating in overseas markets. With "fashion" as the main axis, SHEIN focuses on overseas market expansion, and has successfully won the warm pursuit and love of consumers through innovative and diversified product styles, cost-effective advantages and rapidly updated product line strategies.
Since 2014, the number of downloads has continued to increase year by year. According to media reports, as of November 2023, SHEIN has been downloaded more than 830 million times worldwide. Not long ago, in the list of "Top 10 Fastest Growing Brands in the United States" released by Morning Consult, a well-known authoritative consulting company in the United States, SHEIN ranked fourth as the only Chinese brand and the only fashion retail brand selected for the list, as well as ChatGPT, Coca-Cola and other internationally renowned brands.
It is worth mentioning that SHEIN has successively surpassed Nike and other clothing brands with the largest Google search volume, and replaced ZARA to become the world's most popular fashion brand, and is also known as the "advanced version of ZARA" in the industry. According to research firm Coresight, global revenue in SHEIN2022 was about $23 billion, surpassing Zara and H&M and ranking among the first echelon of global fashion brands "unicorns".
The main reason why SHEIN has been able to emerge in the global fashion brand market is its competitive advantage brought by its clever use of flexible supply chain and efficient management. This innovative supply chain model enables SHEIN to respond to changes in market demand at an unprecedented speed and achieve rapid design, production and delivery, thereby greatly improving operational efficiency and ensuring the high cost performance of products.
Under the flexible on-demand supply, SHEIN has successfully overcome the long-term inventory backlog problem faced by the apparel industry. It is reported that compared with the unsold inventory level of other brands in the industry, which is usually as high as 40% to 50%, SHEIN can control this proportion in the extremely low single-digit range. Such outstanding performance has undoubtedly become one of the core driving forces for SHEIN's rapid growth, and it is also a key factor for it to stand out in the highly competitive mainstream market.
Wang Xin, executive chairman of Shenzhen Cross-border E-commerce Association, once told a reporter from Nandu Bay Finance Society, "SHEIN's strong flexible supply chain system is accelerating its competitive advantage, and in order to build its own clothing brand, SHEIN has realized the digital flexible supply chain of 'small single quick response' on a large scale and innovatively by digital means, which is also the secret of its continuous improvement of product power and brand power."
With the continuous expansion of the global clothing online consumer market and the trend of increasingly personalized and diversified consumer demand, SHEIN's own clothing brand is expected to usher in continuous growth. It is believed that thanks to its unique advantages in supply chain management and accurate market positioning, SHEIN will seize the opportunity in the ever-changing market environment, realize the sustained and rapid development of its own brand, and is expected to create a more popular brand image on a global scale, consolidate and expand its market share, and set a new development model for the mainland cross-border e-commerce industry.