From unicorn to unseat Amazon: this is Shein, the influencers’ cheap clothing online store. It currently has a valuation of around $ 15 billion.The pandemic has barely affected it due to its web business model. It has a presence in more than 200 countries and is the most downloaded app in 56
The phenomenon of Instagram and Tik Tok among society sometimes causes emerging applications, companies or projects to rise rapidly against all odds.
This is what has happened to Shein , an online store specializing in clothing that, due to its popularity among the influencers of these social networks, currently has a valuation of around 15,000 million dollars and exceeds in downloads in several countries, including United States, Amazon as the most installed shopping app in recent days.
Born in 2008, in China , it was not until recent years that Shein (pronounced shi-in) hit her big pitch to reach 220 countries around the globe. An international platform for online commerce type B2C (direct to consumer), which despite being soon recognized as a unicorn already has figures that are beginning to resemble those of global fashion giants.
Only by selling through its website or app, so it suppresses physical stores , this condition has caused that with the covid-19 pandemic its figures have not been damaged as much as that of other companies. In addition, it has taken advantage of the Tik Tok boom and small influencers to be, at the moment, the most downloaded shopping app in 56 countries .
And, in addition to its type of business, the other key to Shein’s success is its prices. With hundreds of daily offers and costs so low that even those that Amazon often figures out as an anecdote, this company has always embraced the motto “everyone has the right to enjoy the beauty of fashion.”
In 2020, Shein had a turnover close to 10 billion dollars
For this reason, although it was born with a focus on women’s clothing , at the moment its success is sales among young people with products for women, but also for men, children or with an infinity of fashion accessories. An extensive catalog that, in 2020, represented a turnover of 10 billion dollars.
All thanks to a model very similar to the one that catapulted Zara around the world in its day , trading in real time and studying trends (instead of defining itself towards a single style of clothing), but with the Chinese power behind it has taken one more step. Thus, Shein constantly analyzes clothing searches in each country where it has a presence and manages in a short period of time to put products on sale at a very low price.
The new way of buying clothes online that continues to boom with a very high projection and threatens to be the next king of the youth market all over the planet. For the moment, that nickname “unicorn” has long been too small for him.