Repeatedly rumored to be listed, long embroiled in infringement scandals, fast fashion cross-border e-commerceSHEINThe overseas journey has not been smooth sailing. But even so,SHEINStill relying on its multifaceted advantages, it has established a foothold in overseas markets. Recently, its platformThe multi category layout has once again expanded. However,SHEINI also encountered itA small interlude.
Establish an investment promotion team,SHEINLayout luggage business
Recently, some news has been exposedSHEINThe establishment of an investment attraction team in Baigou Town, Hebei Province has sparked concerns from the outside worldSHEINFocus on the next step plan.
Editor inBOSS did indeed discover relevant content after searching for direct employment. From the recruitment information,SHEINThe positions for this recruitment include Senior Procurement Specialist, Local Promotion Specialist, Investment Promotion Specialist, Operations Manager, etc. The information shows that the personnel in these positions will mainly be responsible for the development and service of cross-border e-commerce markets, local and surrounding supply chain cooperative customers, and negotiating cooperation with suppliers based on stage needs.
In fact, those who know Baigou well know that this is the main production area for luggage business, with thousands of luggage enterprises, andThe Baigou luggage industry cluster has been formed, and the luggage business has become one of the important pillar industries in the region.It's not difficult to speculate,SHEINIntended to expand its luggage business in the area.
In addition, in addition to its industrial advantages, the area has gained popularity in both domestic and foreign markets due to the clustering of multiple brands. At the same time, by registering one's own brand, such as Furund”The branding effect of Baigou itself has also been strengthened, such as "AOTTLA Otila" and "Swan".
And for theSHEINFor example, using this location as the main source of supply chain for its luggage business not only fully utilizes its industrial cluster advantages, but also leverages the common brand advantages of the twoSHEINThe subsequent development has saved a lot of time, manpower, and promotion costs.
It is understood that as of now,SHEINThe industrial chain layout has extended to multiple categories such as beauty, home furnishings, and clothing. Among them, the home furnishings category includes pet products, decorations, office supplies, etcMore than 50000 products, with clothing categories covering men's, women's, and children's clothing. RecentlySHEINI also launched my own lingerie brand independent website in a low-key mannerLulette.
In terms of market region distribution,SHEINIn addition to its layout in Europe and America, it also focuses onIn 2021, it entered the Middle East and Southeast Asian markets, further expanding its market channels and sales channels. CurrentSHEINIt's already torn off”The label of the Chinese version of Zara has improved its recognition and brand awareness in overseas markets.
It is worth noting that in the rapid development process of this e-commerce giant, the strong supply chain advantage has played an irreplaceable role.
SHEIN "Flexible Supply Chain", accurately matching market demand
During the epidemic,SHEIN's development in Europe and America has been on the rise, with app downloads surpassing Amazon twice. Building on its strong user base,SHEIN's average daily turnover reaches 5000-7000skuIt can greatly improve the repurchase rate of users. Such an efficient update speed, in line withThe strong supply chain behind SHEIN cannot be separated from relationships.
According to industry analysis,SHEINThe order starts with a small-scale production of one or two hundred pieces. If the market feedback is good, the order will continue to be returned. If it does not meet expectations, production will be suspended and adjusted in a timely manner according to market conditions. The flexible supply chain method has high flexibility.
There are suppliers on top and cooperative brands on the bottom, in order to maintain efficient operation efficiency,The SHEIN backend system is particularly important, as it is divided into multiple systems based on different roles, such as fabrics and factories. Each factory can see real-time demand information of SKUs being sold, and multiple aspects of information can accurately match market demand. Under high efficiency, it is a shorter production cycle.
And competitorsCompared to ZARA, the production cycle of ZARA is about half a month at the fastest, while SHEIN can compress it to one week at the fastest. In addition to price wars, SEHIN also has an advantage in the production cycle.
High cost-effectiveness and fast speed, allowing forSHEIN is gradually gaining a foothold in the fast fashion industry, 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
Under multiple advantages,SHEIN's sales are also steadily increasing, according to foreign media reports,hisThe revenue in 2021 reached 100 billion yuan. at presentSHEIN has completed multiple rounds of financing and continuously increased its value. At the same time, there have been multiple rumors of SHEIN going public in the United States, but SHEIN has denied them.
Although the listing news is uncertainSHEIN keeps moving. Recently, SHEIN invested in the "Xiyin Bay Area Supply Chain Headquarters Project" in Guangzhou, establishing the supply chain headquarters in the Greater Bay Area of Guangzhou. The project cost 15 billion yuan and covers an area of 3.3 million square meters, continuously expanding the advantages of the supply chain.
A strong supply chain isAt the same time as SHEIN's advantages, due to its large scale, inadequate management and control can also lead to problems. SHEIN has also been controversial in recent years due to plagiarism. Recently, SHEIN was reported by foreign media on suspicion of plagiarism from ZARA, which has sparked a wave of heated discussions.
Accused of plagiarismZARA, SHEIN Causes Controversy Again
The report points out that,SHEIN Clothing is suspected of plagiarizing ZARA's product design. A user shared dozens of groups of SHEIN and ZARA clothes on social media, among which a comparison of a group of dresses shows that the appearance of the two brands is almost identical.
(Image source: The Guardian)
The content of related disputes isBoth Tik Tok and Instagram have discussed this. There are many hot posts on Tik Tok about comparing two brands, with the tags "# zaravshein" and "zaradupe" having high popularity among them. There is also a user on Instagram who specializes in comparing SHEIN with other brands, with over 30000 followers.
In these comparisons, many consumers will also use this to find alternatives for other brands, such asI can find ZARA's clothes in SHEIN, which look similar in appearance but are cheaper in price and have become my substitute.
This is notSHEIN first encountered plagiarism controversy. Last July, the designer of fashion brand Elexiay tweeted that SHEIN had plagiarized their top design and provided a comparison image. The original Elexiay top was handmade for $330, while SHEIN sold for only $17. Subsequently, SHEIN's product was complained of being taken off the shelves. Such plagiarism disputes are not uncommon in SHEIN.
As a representative brand of China going global,SHEIN is becoming more and more popular among consumers, but in the process of increasing the scale of the supply chain, strict control measures should also be taken to reduce negative controversies and further enhance the visibility of Chinese brands abroad.
There are many reasons why people are popular, but this does not affect SHEIN's contribution to the Chinese brand going global. SHEIN's successful journey in the past two years has also attracted many imitators to join. Although the traffic and experience accumulated over the years are difficult to replicate, the management methods behind it are worth learning and learning from by sellers.