Shein cross-border e-commerce platform: the global rise of Chinese fast fashion brands
As a comprehensive e-commerce platform, Shein covers many fields such as men’s clothing, women’s clothing, children’s clothing and home products. Headquartered in Shenzhen, it is known as “China’s Zara” for its low pricing, wide variety of styles and reliable quality, and has attracted many young customers around the world with its unique business strategy. Although Shein is a Chinese local brand, its business has covered many countries and regions such as France, Russia, Italy, Spain, Australia, Germany, and Thailand, and its business has spread to more than 200 countries and regions around the world.
Unique features of the business model
Flexible supply chain management
Shein’s supply chain management is very efficient and can respond quickly to changes in market demand. There are hundreds of suppliers in the Pearl River Delta region of Guangdong Province, China, where the company is headquartered, allowing Shein to quickly launch new products and meet the needs of different regions and consumers. In addition, Shein also has independent research and development and design capabilities, launching more than 30 new products every month to keep up with fashion trends.
Taking advantage of trade war opportunities
The trade war has had a significant impact on Chinese exports, but due to higher tariffs, Shein is able to use express delivery to ship products directly to American consumers. If the value of the goods is less than $800, they are tax-free, which allows Shein to maintain a low-price advantage and further enhance its competitiveness in the market. This strategy allowed Shein to successfully bypass trade barriers and achieve great success in the U.S. market.
Efficient logistics system
Shein pays attention to the timeliness of delivery, promising that orders will be shipped within 40 hours, and ensuring delivery within the stocking period. This efficient logistics operation provides convenience to users and is one of the differences between Shein and other cross-border e-commerce platforms.
Stable supply and high quality assurance
Shein has a stable supply and ensures that industry leaders in the product categories provided receive priority supply. This stable supply and high-quality goods are one of the reasons for Shein’s long-term popularity and are deeply trusted by consumers.
Financing and brand influence
In 2020, Shein successfully completed Series E financing, valuing the company at more than $15 billion. Although the company is keeping a low profile, the achievement shows its strong performance in the market. In addition, Shein cooperates with major social media platforms for precision marketing and advertising, thereby expanding brand influence and attracting more users.
Conclusion
In general, Shein’s success is inseparable from its unique business strategies, including flexible supply chain management, utilization of tax exemption policies, and excellent product design. Shein has successfully entered the international market, brought Chinese fast fashion to the world, and become a model for China’s e-commerce industry. Although Shein’s success is not without controversy, its development speed and market share growth are impressive, heralding a new chapter in China’s e-commerce field.
How about cross-border e-commerce platform Shein? Cross-border e-commerce platform Shein has won the favor of global consumers for its supply scale, delivery timeliness, supply stability and innovation capabilities. Regardless of user scale or business performance, Shein is a leader among cross-border e-commerce platforms.