You'll often see this common scene when scrolling through YouTube, TikTok, and Instagram: a teenager unpacking a collection of clothes from Shein onto their bed and showing them off to earn likes and followers.
The Chinese fast-fashion company's popularity exploded during the New Crown epidemic, but if you're over 30, chances are you've never heard of it. The sales giant, which operates exclusively online, is targeting consumers who are concerned about hot searches and costs, and it is adding a staggering 6,000 new products to its lineup every day.
So what is it about the company that has enabled it to succeed in leaving rivals Asos and Boohoo far behind?
The brand Sheinside was founded in 2008 by the then-obscure founders under the leadership of entrepreneur Chris Xu, who initially focused on digital marketing and selling wedding dresses online. Five years later, the name was simplified to Shein, which is pronounced She-in in English.
Though based in China, the company primarily targets customers in the US, Europe and Australia with a range of inexpensive, waist-baring tops, bikinis and dresses that cost an average of just £7.90 (RMB 68). Today, it is one of the biggest players in fast fashion, selling in 220 countries.
At any given time, there are up to 600,000 products for sale on Shein's online platform. The company relies on thousands of third-party suppliers near its headquarters in Guangzhou, as well as about 200 contract manufacturers to supply its goods.
Author and China tech expert Matthew Brennan calls the company's sales model 'real-time retailing,' in which small companies in the supply chain can get information about trends or product performance from its internal systems.
Based on that data, they produce 50 to 100 items of each style. If it works well, Shein places more orders. If it doesn't work, they stop production immediately. Shein can close on a new item in about 25 days. For many retailers, that can take months.
The company ships directly to customers, with most of its goods coming from a 16 million square foot warehouse on the outskirts of Guangzhou.
From student "campus ambassadors" to reality TV stars such as Made in Chelsea's Georgia Toffolo, Shein is actively using an army of online celebrities, amassing more than 250 million followers across multiple social media platforms.
Emily Salter, retail analyst at GlobalData, said Shein's online presence has been a big driver of its success 'as it has increased brand awareness and engagement'.
The brand's refined advertising on Instagram and TikTok, as well as its sponsorship of online celebrities, has helped it maintain its influence among the youngest shoppers.
So would you choose to buy Shein's clothes?
