Founded 13 years ago, with a market value of $15 billion, how does SHEIN make money?

SHEIN's clothes are priced as low as $3, but they can generate about $10 billion in revenue each year. From high-end models in collaboration with celebrities to low-priced models that are affordable to the public, how does SHEIN attract customers to spend?

Relatively low price strategy and supply chain system

SHEIN's product pricing is much lower than other popular fast fashion brands. On SHEIN's website, consumers can buy trendy clothes for $3, shoes for $7, and even exquisite accessories for $1.

This relatively low-price strategy makes customers feel that they have bought good value products. This sense of satisfaction will stimulate their desire to shop and continue to consume.

SHEIN can offer such low prices because of its online retail characteristics. It does not require high management costs and can keep up with fashion trends without worrying too much about inventory issues.

In addition, SHEIN has its own supply chain system. Fast fashion brands like Zara used to make headlines for launching hundreds of new styles every few weeks. But now, SHEIN can put 2,000 new styles on the shelves every day, which is undoubtedly a huge attraction for consumers.

New Media and Celebrity Effect

Video creators need to increase their traffic and fans by constantly unboxing items. SHEIN's seemingly endless styles and low prices have made it the first choice for these people.

SHEIN is also popular among content creators because anyone can join its affiliate program and earn commissions. While earning commissions, these people also give SHEIN free publicity. In this way, SHEIN has earned huge revenue while increasing its customer base.

SHEIN also cooperates with influential celebrities (such as Addison Rae and Madelaine Petsch ) for a fee and sponsors some well-known bloggers. These collaborations have enabled more and more groups to get in touch with and understand SHEIN, which has promoted the development of SHEIN to a certain extent.

SHEIN's unique VIP and reward mechanism

SHEIN's VIP system is divided into three levels, S1, S2 and S3. Different from the VIP upgrade method we know, SHEIN's upgrade mechanism is relatively simple.

Customers only need to place one order or spend 1 cent to become S1, place two orders or spend $90 to upgrade to S2, and reach S3 by placing five orders or spending $300.

As the highest level, S3 customers enjoy benefits such as extremely fast refunds and exclusive promotions. In addition, users can earn points through purchases and earn extra points by leaving reviews, which can be used as discounts on the next purchase.

All of this ultimately creates a closed loop that attracts consumers to continue buying, which may be how SHEIN makes money.

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