shein it is entering new stage of growth. With the characteristic stealth of the new Asian e-commerce giantsThe company that revolutionized fashion sales worldwide faces a new level. From being an ‘ultra-fast’ fashion tech firm, it has offered to diversify its commercial offering and bring its commercial model closer to: Amazon and AliExpress. The idea is to make well-known brands and product suppliers better suited to target markets. The firm describes this change in business model as an attempt to “empower” its platform’s vendors. In the marketing plan, the strategy was called “Accelera Shein”.
The purpose of the new expansion program is similar to the one that Aliexpress has introduced in Spain for several years. It will focus on supporting 100,000 vendors to achieve annual sales of up to $100,000 over three years. They will also select 10,000 salespeople for an accelerated program that will allow them to reach one million dollars in annual sales within three years.
Known specifically for selling ultra-cheap clothing and especially swimwear at unbeatable prices, Shein is now powering its integrated global online marketplace for fashion, beauty and lifestyle products. Everything starts to fit into a portal with aggressive prices and no comparable competition. Shein does not want to lose the opportunity to compete with Aliexpress with the same weapons.
Skechers and Lansinoh among new allies
The multinational company announced that Mexico will follow Brazil and the USA in the official launch of Shein’s ‘online’ platform, which offers products from external vendors as well as its own products. Launches in Germany, Spain, France, and Italy will soon do the same. In addition to these third-party vendors, the so-called Shein Marketplace has also incorporated well-known global brands such as: skechersa leading shoe company known for its innovative designs and lansinohThe trusted name in prenatal and postnatal care products.
IESE professor José Luis Nueno He thinks Shein’s change of strategy is due to predictable restrictions on Chinese imports by the US and the need to set up warehouses close to markets to reduce delivery times and logistics costs. “A US veto of Shein could mean that the Chinese multinational would lose a third of its estimated turnover of about $23,000 million last year,” he explains.
transfer of plants
Nueno adds that growing geopolitical hostilities between the US and China have caused many Chinese companies to relocate their headquarters to Singapore and their factories to Mexico. And Shein’s upcoming IPO is creating a rumor of one of those transfers. In parallel, the funds that own these Chinese companies (or have significant stakes like Sequoia) are diversifying their assets to avoid the risk of worsening relations between the US and China.
Shein’s return poses a new threat to competition in the fashion industry. After pushing ‘fast fashion’ firms into new market segments, Shein now wants to enter the competitive world of generic ‘marketplaces’.
Just like Aliexpress, the European branch of the group, did at that time. Ali DadThe aim is to facilitate the entry of suppliers and distributors into the sales platform. “including training and skills development, benefits and incentives to help vendors achieve their business goals.” The idea that global competitiveness of a product that is successful in China is assured, shein. Relentless global commercial concentration marks another step in Shein’s expansion agenda.
In last decade, shein developed an ultra-efficient e-commerce platform focused on ultra-cheap fashion and linked to nearby production centers. His outage was quick and efficient and even surprised industry analysts. fashion brands like Zara, H&M or Mango Due to the impossibility of price competition with Shein, they had to reposition their products. The use of social media and advanced artificial intelligence techniques increased sales. Prices are so low that Shein has avoided the problem of reverse logistics so far by providing sufficient trade margin despite the low selling prices. This shine technology It allows vendors to react quickly to the evolution of demand, and the status of textile mills in low labor cost regions completes a business model that cannot be replicated in Western economies.