As of May 18, 2021, Shein, a fast-fashion brand from China, has become the most popular shopping app for iOS and Android users in the United States. Shein is an international B2C fast fashion brand that sells the best clothes for women, men, and children, as well as trendy accessories and other trendy products and accessories. Today, let's look at how this new fast fashion brand has done so far.
Nanjing Lingtian Information Technology Co., which was started in 2008, is the owner of Shein. Chris Xu started the company, which has its main office in China. It is about clothes for both men and women. Shein also sells clothes for children, accessories, bags, and shoes, among other things. The company's main markets are in the United States, Europe, and the Middle East, but it also sells to consumers in other countries.
The Fast Fashion Business
Fast Fashion is a business that is growing at a very fast rate. The market for fast fashion was worth $1,003,5 billion in 2020. It is expected to grow at a compound annual growth rate (CAGR) of 4.4% from 2021 to 2028, bringing it to $1,412,500 billion by 2028. All of these are good enough reasons for new companies and big names in eCommerce to get into the fast fashion business.
The History and Story of Shein
Chris Xu first thought of starting the company when he learned how valuable Chinese products were on international markets. He found that the only thing keeping international customers from buying Chinese goods was the difference in their currencies and all the problems that came with it. After starting ZZKKO, he began to sell wedding dresses.
Eventually, the company started making clothes for women and changed its name to "SheInside."
In the early 2010s, the company also started selling makeup, jewellery, shoes, purses, and other accessories.
By 2013, about 100 people worked for Sheinside. It changed its marketing strategies even more, and soon it was a full-service retailer. In 2015, the company changed its name again, this time to "Shein" to make it easier for everyone to remember. In 2016, there were 800 people on the Shein team.
So far, four investors have put money into Shein. In the Series A round, JAFCO Asia gave money to Shein. IDG Capital put an amount that can't be said into the company during the Series B funding round. During the Series B round, Greenwood's Asset Management also put an amount that was not made public into Shein. In August 2021, the company is said to have raised $553,4 million. Shein has raised a total of $2.1 billion in funds.
At the moment, the company is following in the footsteps of Amazon, China's JD.com, and Meituan, all of which have increased the number of products they sell over time. In the next year, Shein wants to dig deeper into fashion, grow into other markets, or change its e-commerce model to be more horizontal.