SHEIN has new moves

SHEIN , a fast fashion cross-border e-commerce company , has not had a smooth overseas journey , having been rumored to be going public many times and being involved in copyright infringement scandals for a long time . But even so, SHEIN has still established a foothold in the overseas market with its own advantages in many aspects. Recently, its platform's multi-category layout has been expanded again. However, SHEIN has also encountered a "small episode".

SHEIN sets up a business investment team to develop its luggage business

Recently, news broke that SHEIN is setting up an investment promotion team in Baigou Town, Hebei Province, which has aroused outside attention to SHEIN’s next plan.

The editor did find relevant content after searching on BOSS Zhipin. According to the recruitment information, SHEIN 's recruitment positions include senior purchasing specialists, field sales specialists, investment specialists, operations managers , etc. The information shows that the personnel in these positions will be mainly responsible for the cross-border e-commerce market, the development and service of local and surrounding supply chain cooperation customers, and negotiate with suppliers to reach cooperation according to stage needs.

In fact, people who know Baigou know that it is the main production base of luggage business, with thousands of luggage enterprises, and has formed the Baigou luggage industry cluster, and the luggage business has become one of the important pillar industries in the area . It is not difficult to speculate that SHEIN intends to expand its luggage business in the area.

In addition to its industrial advantages, the region has gained a reputation in domestic and overseas markets due to the concentration of multiple brands. At the same time, Baigou has also strengthened its own branding effect by registering its own brands, such as Furunde, AOTTLA, and Siheng.

For SHEIN , using this place as the main supply chain production base for its luggage business can not only make full use of its industrial cluster advantages, but also give play to the common brand advantages of both, saving a lot of time, manpower and promotion costs for SHEIN's subsequent development.

It is understood that, as of now, SHEIN 's industrial chain layout has extended to multiple categories such as beauty, home furnishings, and clothing. Among them, the home furnishing category covers more than 50,000 products including pet supplies, decorations, office supplies, etc., and the clothing category covers men's clothing, women's clothing, children's clothing, etc. Recently, SHEIN has also quietly launched its own underwear brand independent website Luvlette.

In terms of market distribution, in addition to Europe and the United States, SHEIN also entered the Middle East and Southeast Asian markets in 2021, further expanding its market channels and sales. Now SHEIN has torn off the label of "Chinese version of Zara", and its recognition and brand awareness in overseas markets have been improved.

It is worth noting that in the rapid development of this e-commerce giant, strong supply chain advantages have played an irreplaceable role.

SHEIN's "flexible supply chain" accurately matches market demand

During the epidemic, SHEIN's development in Europe and the United States has been on the rise, and the number of APP downloads has exceeded Amazon twice. Based on a strong user base, SHEIN's average daily new product volume reaches 5,000-7,000 sku , which can greatly increase the user's repurchase rate. Such an efficient new product speed is inseparable from the strong supply chain behind SHEIN.

According to industry analysis, SHEIN orders start with small-scale production of one or two hundred pieces. If the market feedback is good, they will continue to place orders. If the expectations are not met, production will be suspended. Timely adjustments will be made based on market conditions. The flexible supply chain approach has high flexibility.

With suppliers above and cooperative brands below, SHEIN's backend system is particularly important to maintain efficient operation. SHEIN's backend is divided into multiple systems according to different roles, such as fabrics, factories, etc. Each factory can see the real-time demand information of the sku on sale, and multi-faceted information docking can accurately match market demand. High efficiency means a shorter production cycle.

Compared with its competitor ZARA, ZARA's production cycle is as fast as about half a month, while SHEIN can be compressed to as fast as one week. In addition to the price war, SHEIN also has more advantages in production cycle.

With high cost-effectiveness and fast new product launch, SHEIN has gradually gained a firm foothold in the fast fashion field, and many suppliers are "rushing" to join SHEIN's supply chain. According to an insider, "about one-third of the clothing supply chain in Guangzhou is supplying SHEIN."

With multiple advantages, SHEIN's sales are also rising steadily. According to foreign media reports, its revenue in 2021 reached 100 billion yuan . At present, SHEIN has completed multiple rounds of financing. While its value continues to rise, SHEIN has also been rumored to be listed in the United States many times, but SHEIN has denied it.

Although the news of the listing is uncertain, SHEIN has been making continuous moves. Some time ago, SHEIN invested in the "Xiyin Bay Area Supply Chain Headquarters Project" in Guangzhou, and established the supply chain headquarters in the Guangzhou Bay Area, spending 15 billion yuan and covering an area of ​​3.3 million square meters, continuously expanding its supply chain advantages.

While a strong supply chain is SHEIN's advantage, due to its large scale, problems can easily arise if management is not in place. SHEIN has also been subject to controversy over plagiarism in recent years. Recently, SHEIN was reported by foreign media for allegedly plagiarizing ZARA, which has caused a heated discussion.

SHEIN is accused of plagiarizing ZARA and sparks controversy again

The report pointed out that SHEIN clothing is suspected of plagiarizing ZARA's product design. Some users shared dozens of sets of SHEIN and ZARA clothing on social media. In the comparison of a set of dresses, it can be seen that the appearance of the two brands is almost exactly the same.

(Photo courtesy The Guardian)

The controversial content has been discussed on Tik Tok and Instagram. There are many hot posts on Tik Tok comparing the two brands, and the two tags "#zaravsshein" and "zaradupe" are both very popular. There is also a user on Instagram who specializes in comparing SHEIN with other brands, with more than 30,000 followers.

In the course of these comparisons, many consumers will also look for alternatives to other brands. For example, “You can find ZARA clothes at SHEIN. They look very similar, but are cheaper. They have become my alternative.”

This is not the first time that SHEIN has encountered a plagiarism controversy. In July last year, the designer of the fashion brand Elexiay tweeted that SHEIN plagiarized the design of their tops and provided a comparison chart. The original Elexiay top was handmade and sold for $330, while SHEIN sold it for only $17. Subsequently, SHEIN's product was taken off the shelves due to complaints. Such plagiarism disputes are not uncommon for SHEIN.

As a representative brand of China's overseas expansion, SHEIN is becoming more and more popular among consumers. However, as the scale of the supply chain becomes larger and larger, strict control must be implemented to reduce the negative controversies caused by it and further enhance the popularity of Chinese brands abroad.

“Fame brings trouble,” but this does not affect SHEIN’s contribution to China’s overseas expansion. SHEIN’s road to success has also attracted many imitators in the past two years. Although its accumulated traffic and experience over the years are difficult to replicate, the business philosophy behind it is worth learning and reference for sellers.

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