In last year's spring financing, Chinese e-commerce company Shein was valued at as much as US$66 billion (about 476.1 billion yuan). According to industry forecasts, the company expects net revenue to reach about $45 billion in 2023, a significant increase from $22 billion in 2022.
Shein, a giant that dominates the fast-fashion e-tailing space, is about to make an initial public offering (IPO) in London. After its remarkable achievements in the apparel sector, the company is actively planning to enter the beauty sector. In addition to its main business, Shein is also quietly building an equally trend-oriented makeup department - SheGlam.
SheGlam is popular for its endless stream of popular IP collaborations and highly disseminated products, and the brand debuted through a storefront on Shein's website in 2019 and quickly attracted the attention of a large number of consumers with its unique charm. Once Shein's IPO is successful, it will provide strong financial support for its further expansion, and SheGlam, as an important beauty brand under Shein, is also expected to take this opportunity to usher in greater development opportunities.
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Born out of Shein's strategic expansion
Chinese e-commerce giant Shein has made a profound impact on the global fashion industry with its responsive fashion trends, affordable and trendy clothing. Since its inception in 2008, Shein has kept up with fashion trends and has successfully attracted many loyal fans, especially young consumers, by providing a variety of cost-effective clothing. However, instead of resting on its laurels, Shein was keenly aware of the huge potential of the beauty market and consumers' urgent demand for high-quality, affordable products, and decided to expand its business footprint.
This strategic expansion led to the birth of SheGlam, a beauty brand dedicated to bringing Shein's success in the fashion industry to the cosmetics market. SheGlam's founder and CEO, Sylvia Fu, was an assistant to Shein founder Chris Xu, who founded Sheglam after working in the venture capital space for a while.
SheGlam's appearance at a time when the global pandemic is raging and the beauty industry is undergoing a major shift to online shopping has provided SheGlam with the perfect stage to shine. Upon its launch, SheGlam quickly became a sensation in the market with a diversified product line that included cosmetics, skincare, nail care and hair care products. These products are priced between $1 and $13, satisfying consumers' quest for value for money.
In December 2020, SheGlam further expanded its brand presence with the launch of its independent website. Two years later, the brand successfully opened a third sales channel on Amazon, demonstrating its diverse market presence and growing strength. According to the data, SheGlam's sales have reached $2 million in 2023 and are expected to exceed the $5 million mark this year.
However, Amazon seems to be only a small part of SheGlam's many sales channels. At present, the brand has been launched in more than 150 countries and regions, and is rapidly expanding its presence in the physical retail industry. In terms of overall business, sources estimate that SheGlam could account for 0.5% to 1% of Shein's total business, which would bring the brand's sales to $225 million to $450 million. This figure not only highlights SheGlam's strong growth momentum, but also indicates its huge potential in the future beauty market.
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Amplify your voice with social platforms
SheGlam is best known for the success of its overseas social platforms. In 2023, the brand became the seventh most influential beauty brand on TikTok with 9,800 touches from influencers, and Sephora is the only beauty company to surpass SheGlam in this metric.
"SheGlam is a beast with a great performance on TikTok – it's huge, especially among young consumers," says an industry insider. Most of SheGlam's "mentions" come from tutorials and "product roundups and test videos," showing the brand's excellence in nurturing long-term creator relationships.
In addition, SheGlam has an average of 22.9 million weekly views on TikTok, which is well above the average in the beauty sector. This achievement demonstrates SheGlam's strong influence and appeal on social media.
Keeping up with the latest trends in social media and e-commerce, SheGlam crafts a unique brand identity that resonates with the target consumer group. Currently, there are about 1,000 beauty products on display on the SheGlam.com, covering a wide range of categories. The brand selects three to five core products for in-depth promotion each year, while adding two to five new SKUs every month, including the expansion of the color range, to meet the needs of different consumers.
It is worth mentioning that SheGlam's product line is designed to be highly inclusive, catering to a variety of skin tones and beauty preferences, allowing consumers to find the right products for themselves within the brand. In addition, co-branded products have always been a major feature of SheGlam, and the collaboration with pop culture brands has not only sparked strong interest among fans, but also helped SheGlam gain greater visibility and credibility. For example, collaborations with brands such as Rick & Morty, Marilyn Monroe and Harry Potter demonstrate SheGlam's determination to keep up with trends and innovate.
SheGlam's products are popular, such as the brand's ColorBloom liquid blush, which retails for just $5.99, but stands out in the market for its unique quality. According to the data, the blush is second only to EIf Cosmetics' Monochromatic Multi Stick ($5) on Amazon.
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The goal is to build a beauty empire
As a global and inclusive brand, SheGlam is headquartered in Los Angeles with offices in China and Singapore. With its expanding influence and global presence, SheGlam will continue to shine in the makeup market in the future.
By expanding its expertise into the beauty industry, Shein has successfully established SheGlam as a force to compete with brands such as NYX and Revolution Beauty, rather than just being categorized as a beauty accessory for its fast-fashion peers. The success of this strategy is first and foremost due to Shein's existing large customer base, which provides SheGlam with a large audience ready to try its beauty products.
But SheGlam retains a degree of independence from the parent company. While consumers can still purchase SheGlam products through the Shein website, SheGlam's independent website and its social media pages do not mention Shein. With 7.4 million followers on TikTok, SheGlam is second only to HudaBeauty's 9.6 million followers in the cosmetics space, and its page profile reads only "Leaping Bunny" endorsement, demonstrating its brand independence and commitment to animal protection.
SHEGLAM's business footprint continues to expand in a low-key manner. While the European market is strategically located for Shein's overall business, particularly in France and Spain, SheGlam also has its eye on the Middle East. Because the beauty market in the region is growing much faster than the apparel and footwear market. From 2023 to 2028, color cosmetics is expected to grow at a CAGR of 4.7%, while apparel and footwear are expected to grow at a CAGR of just 2.5%.
SheGlam has successfully entered shopping malls in U.A.E., Dubai and other places last year, and plans to expand its number of stores in the Middle East to more than 200 by the end of this year. According to the 2023 Top 100 Chinese Brands Going Overseas released by the CBN Business Data Center, SheGlam won the third place in the beauty and personal care list.