According to numerous media reports, fashion retailer Shein and partner Reliance Retail intend to quickly grow their Indian supplier base and begin selling Shein-branded clothing abroad in the next six to twelve months.
As per stories published in the media, the Singapore-based e-commerce company, which was started in China, has been in talks with the Indian retailer about plans ever since the US put tariffs on Chinese goods, which made sourcing more difficult. The goal is to increase the number of Indian suppliers from 150 to 1,000 in a year.
Shein said it licensed its brand for use in India. Shein sells inexpensive clothing, like dresses for $5 and pants for $10, that are supplied straight from 7,000 Chinese vendors to consumers in about 150 countries. Its largest market is the United States, where it is acclimating to tariffs on low-value, duty-free Chinese e-commerce packages.
As part of government action against companies with ties to China amid border tensions with its northeast neighbour, the shop started in India in 2018, but its app was blocked in 2020. In February, it made a comeback under a licensing agreement with the Reliance Industries division, which established SheinIndia.in to sell clothing bearing the Shein name made in nearby factories. Shein’s other websites, on the other hand, primarily feature Chinese products.
Reliance Building its Garment Manufacturing Network
As per reports, Reliance, which is owned by Asia’s richest man, Mukesh Ambani, has agreements with 150 clothing manufacturers and is in talks with 400 more. Within a year, 1,000 Indian manufacturers are expected to produce Shein-branded clothing for the Indian market as well as to supply some of Shein’s international websites.
Shein initially intends to list clothing made in India on its websites in the US and the UK. Discussions have been going on for months, and depending on the number of suppliers, the six- to 12-month launch date may change.
Reliance, which handles manufacturing, supply chain management, sales, and operations in the Indian market, has been granted a domestic brand licence by Shein, the company announced in a statement.
The goal of the Shein-Reliance alliance, according to Minister of Commerce and Industry Piyush Goyal, was to establish a network of Indian suppliers of Shein-branded clothing for sale “domestically and globally” in December.
Shein Gaining Popularity in India
Shein is a massive fast-fashion company that makes over $30 billion a year thanks to its aggressive marketing and inexpensive costs. Although some of its items are created in Turkey and Brazil, the majority come from China.
The company’s expansion in India is indicative of the interest in the country from Walmart and other global fashion and retail companies, particularly those seeking suppliers outside of China as a result of the Sino-US trade conflict.
According to data from market research firm Sensor Tower, the Shein India app has been downloaded 2.7 million times on the Apple and Google Play stores, with an average monthly growth of 120%.
Only 12,000 designs have been offered in the first four months, which is a small portion of the 600,000 products on its US website. As of June 9, the cheapest item in the women’s dresses category is 349 Indian rupees ($4), while the US website charges $3.39.
A renowned media house reported on 14 February that Donald Trump’s decision to repeal the so-called “de minimis” criteria is likely to delay fast-fashion company Shein’s plans to float on the UK stock exchange until the second half of this year. According to reports last month, Shein planned to go public in London in the first half of this year, provided it received approval from Chinese and UK regulators. The Trump administration’s announcement that it would eliminate the de minimis tariff exemption in the US, an import regulation that has assisted Shein in maintaining cheap costs, has cast doubt on the company’s future.
Trump’s Opening Salvo
Analysts and industry experts had previously warned that the elimination of the exemption might affect Shein’s profitability and raise product costs in the US, which is its largest market.
According to a media outlet that cited persons familiar with the talks, the fast-fashion retailer had previously informed investors that a London listing might take place as early as this Easter. In what he described as an “opening salvo” in a conflict between the two biggest economies in the world, Trump imposed an additional 10% tariff on China, which included the removal of de minimis. According to a 2023 study by the US congressional committee on China, Shein and rival Temu likely accounted for over 30% of all parcels transported to the US daily under the de minimis rule. Shipments under $800 were excluded from import taxes under the proposal.
According to several media reports last week, Shein was planning to reduce its valuation in a possible listing to about $50 billion, which is about a quarter less than the company’s 2023 fundraising estimate of $66 billion, due to mounting challenges.
Shein Return to India
Nearly five years after the fast-fashion giant’s app was blocked in India due to rising diplomatic tensions between India and its neighbour, China, Isha and Mukesh Ambani’s Reliance Retail has successfully reintroduced Shein in India. Shein has returned to one of Asia’s biggest retail markets with the recently released Shein India Fast Fashion app, which was created under a license agreement with Reliance.
Reliance’s control over operations and data, with all consumer information retained in India, is one of the strict requirements attached to this agreement. The action also represents a change of strategy for Reliance, which aims to expand its online presence by providing Shein’s well-liked, reasonably priced clothing on a completely localised platform.
Nearly five years after its app was banned in India due to diplomatic concerns between China and India, Reliance Retail has formally restored its presence in the country by launching a new app to sell fashionwear from China’s Shein. According to sources, the app, Shein India Fast Fashion, was secretly released on Saturday morning; however, Reliance has not yet released an official statement.
Nearly five years after the fast-fashion giant’s app was blocked in India due to rising diplomatic tensions between India and its neighbour, China, Isha and Mukesh Ambani’s Reliance Retail has successfully reintroduced Shein in India. Shein has returned to one of Asia’s biggest retail markets with the recently released Shein India Fast Fashion app, which was created under a license agreement with Reliance.
Reliance’s control over operations and data, with all consumer information retained in India, is one of the strict requirements attached to this agreement. The action also represents a change of strategy for Reliance, which aims to expand its online presence by providing Shein’s well-liked, reasonably priced clothing on a completely localised platform.
Nearly five years after its app was banned in India due to diplomatic concerns between China and India, Reliance Retail has formally restored its presence in the country by launching a new app to sell fashionwear from China’s Shein. According to sources, the app, Shein India Fast Fashion, was secretly released on Saturday morning; however, Reliance has not yet released an official statement.
Why Shien is Riding on Reliance’s Back?
Founded in 2012 in China and currently based in Singapore, Shein gained popularity for selling stylish yet reasonably priced Western clothing. It suffered a blow in 2020, though, when India blocked Shein and other Chinese apps like TikTok due to national security concerns in the midst of escalating border issues between the two nations. As a result, customers could no longer access the site, which had been very popular in India.
Shein is currently reviving in India despite the setback thanks to a license agreement with billionaire Mukesh Ambani‘s Reliance Retail. Reliance will pay a licensing fee to use the Shein brand name as part of this partnership, but no equity investment will be made.
The transaction marks a substantial departure from Reliance’s typical approach, even if the company has not yet made the financial details public. With the new agreement, Shein will have a dedicated platform for Indian consumers instead of just adding foreign brands to its existing Ajio fashion app, where it presently sells brands like Superdry and Gap.
Shein’s return is significant since the business will be operating under strict guidelines. Shein will only serve as a technological partner, while Reliance will maintain exclusive control over the platform and its operations. The fact that all client data would be kept locally in India and that Shein will not have access to it is a key requirement of this relationship.
This action supports the Indian government’s initiatives to preserve sensitive consumer data and uphold data sovereignty. To guarantee adherence to India’s stringent data standards, Shein will also need to submit to routine security audits conducted by cybersecurity companies that have been approved by the government.
What New Shein India App Will Offer
Dresses for as little as 199 rupees (about $2.30) are among the many affordable fashion items available on the new Shein India app. Customers will first be able to use the app in a few cities, including Bengaluru, Mumbai, and New Delhi, with hopes to quickly expand to more areas. One of the app’s noteworthy characteristics is that, in keeping with India’s efforts to strengthen its domestic textile sector, all Shein-branded products offered through the platform would be created and produced locally by Indian producers.
Why It’s a Win-Win Deal for Both Reliance and Shein?
Reliance’s decision to relaunch Shein in India is a component of a larger plan to bolster its online presence and subvert the dominance of competitors like Flipkart, Amazon, and Meesho, particularly in the fiercely competitive fashion e-commerce market. Even though it has the biggest retail chain in the nation, Reliance has had difficulty breaking through in the online retail space. With the recent introduction of quick delivery options like same-day delivery under 30 minutes for some orders on its Myntra platform, Flipkart in particular has been a formidable rival in the fashion e-commerce market.
As it gets ready for a possible public listing, this partnership offers Shein a calculated chance to re-enter one of Asia’s biggest and fastest-growing retail sectors. Following its unsuccessful bid to list in the United States due to lawmakers’ concerns about China’s rules that companies seek government approval before listing overseas, the platform has been preparing to go public in London later this year.
Over 300 platforms have been impacted by India’s continuous prohibition on Chinese applications since 2020; this cooperation is a rare exception. Several Indian government agencies, including IT and Home Affairs, conducted a thorough screening procedure before approving Shein’s return, paying particular emphasis to making sure Shein complied with the country’s strict cybersecurity and data protection regulations. The alliance intends to support the expansion of India’s textile manufacturing industry while protecting data privacy and national security objectives, according to Commerce Minister Piyush Goyal.
All things considered, Shein’s return to India under the Reliance collaboration marks a dramatic change in the fast-fashion sector in India and not only a win for Shein but also for the changing nature of global trade in the area. Shein’s affordable products, along with Reliance’s wide distribution and domestic production, have the potential to upend the competitive environment as the company continues to establish itself in the Indian retail sector, especially in the online fashion retail space.
Chinese retailer Shein, which intends to re-enter India soon in collaboration with Reliance Retail, will not have access to the data gathered from Indian users, Union Commerce Minister Piyush Goyal informed the Parliament. According to the agreement, the platform (Shein India) will always be housed on Indian infrastructure, and all platform data—both personal and non-personal—generated by the platform’s operations, including all data gathered from Indian customers, will stay in India. “Shein will not have access to or control over this data,” Goyal stated.
This implies that all data produced by the app and the future platform will be housed and kept in India. The minister noted that the license agreement between Reliance Retail and Shein requires the two parties to guarantee localisation of the infrastructure and platform data in response to a query from Congress MP Sasikanth Senthil. The minister added that “any” government-appointed cybersecurity auditor may conduct the security examination of Reliance Retail’s infrastructure and that the company has also been “advised” to guarantee adherence to local regulations.
Re-Entering Indian Market After 4 Years
Shein’s return to India occurs over four years after the platform was “banned” in 2020 due to concerns raised by the Centre that Shein’s parent business was sending or storing Indian users’ data to China. Goyal clarified this on 17 December, stating that although the sale of “branded products” from the Chinese online fashion retailer was never prohibited, Shein’s app was stopped on June 29, 2020. According to him, Shein’s Singapore-based company, Roadget Business Pte Ltd, has signed a technology agreement with Reliance Retail Ventures Limited’s (RRVL) subsidiary Reliance Retail Limited (RRL) to create an Indian e-commerce retail platform. In 2023, the contract was signed. The textile ministry then conferred with the electronics and IT ministry (MeitY) on the issue, Goyal said in the Lok Sabha. Following the home ministry’s permission, MeitY expressed no opposition to RRVL’s plan to repatriate Shein.
Promoting Indigenisation
According to Goyal, this indigenous platform would establish a network of regional suppliers and manufacturers that would produce goods under the Shein brand and market them both domestically and internationally. “It is anticipated that this will contribute to the expansion of the Indian textile manufacturing industry, encompassing regional handicrafts, and generate substantial job opportunities,” Goyal continued. Reliance Retail, which now only receives a licence fee as a portion of earnings made within India, will now offer the Chinese retailer’s products on its apps and in physical locations. However, all data and the app itself will be housed and stored in India, and operations will be fully run by a Reliance Retail subsidiary. Nevertheless, it is unclear if Shein would be able to re-enter the Indian market and achieve the same level of success as during its initial presence there. In 2021, the Chinese company made a second attempt to enter India in collaboration with Amazon, the world’s largest online retailer, but it was unsuccessful.
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Fashion is something that we simply cannot unlove. With the growing age of digital, fashion has come down to our mobile phones, computers, and tablets, which earlier were only available at retail shops and shopping malls.
Shopping for our favourite shirts, t-shirts, jeans, trousers, shoes, and more is now possible online via easy-to-use eCommerce websites and applications, which bring in a host of products across diverse categories and guarantee delivery at our doorstep with minimum charges. Shein is one such international B2C fast fashion brand that extends the best fashion wear including women’s wear, men’s wear, children’s clothes and apparel, trendy accessories, and other fashionable products and accessories.
Slowly rising Chinese fast fashion brand, Shein has ultimately risen to a crescendo when the company emerged as the most popular shopping app in the USA for iOS and Android users, as per the reports of May 18, 2021.
Know about Shein Success Story, its founders, business model, revenue model, growth, competitors, Funding and more.
Shein is a B2C fast fashion company owned by Nanjing Lingtian Information Technology Co. founded in 2008. The company was created by Chris Xu and is headquartered in China. It focuses on both men’s and women’s wear. Clothes for children, accessories, bags, and shoes are some other categories of apparel that Shein houses.
The company primarily targets the shoppers in America, Europe, and Middle Eastern countries along with the consumer markets in other nations. Be it boho dresses, graphic tees, chic swimwear, or patterned blouses, Shein has something for everyone.
Shein is widely popular with people of all ages, especially with Gen Z who likes everything trendy. Almost every fashion vlogger/blogger has made a post or video on Shein at some point in time. Why? It is simply because of the trendy and affordable clothing that Shein offers its global users without letting them compromise in terms of quality.
Shein – Industry
This is the age of fast fashion, where people prefer to go for affordable ranges of clothing and accessories instead of hunting for expensive brands. Thus, the industry of Fast Fashion is growing without bounds.
The market for fast fashion was earlier valued at $1000.3 billion in 2020 and is expected to grow at a CAGR of 4.4% between 2021-2028, thereby reaching $1,412.5 billion by 2028. All of these are reasons enough for the startups and other big names in eCommerce to tap into the fast fashion industry.
Shein – Founder And Team
Chris Xu is the founder and CEO of Shein company.
Chris Xu, Founder and CEO of Shein
Chris Xu
Chris Xu was born in Shandong, China in 1984. Xu is currently known as the founder and the CEO of Shein. He completed his graduation from the Qingdao University of Science and Technology in 2007 and then started working with Nanjing Aodao Information Technology Co, where he worked as an SEO specialist. However, on learning the value of Chinese products on the international markets, he devoted his time and efforts and found a new company called SheInside (Shein).
Quist Huang
Quist Huang is the present ‘Director of Employee Experience Platform’ at Shein. Before joining Shein, Quist Huang was the senior HR manager of Baoneng Motor R&D, GZ China. She also had a stint with Zung Fu, China as an HR manager. It doesn’t end here because Huang also worked at Kelly Services as an outsourcing account manager and was an assistant manager for the TWO Group (RIB AG).
Quist Huang began her career as a Recruiting Specialist. With a profound experience in her bag, which she garnered from a bunch of companies that she served, Quist brings significant expertise to the table.
The Shein team is currently more than 10,000 members strong.
Shein – Startup Story And History
The background of Shein is quite interesting, the idea of the company first popped into the mind of Chris Xu when he learned of the commercial value of Chinese products on the international markets. Xu was then working with Nanjing Aodao Information Technology Co., but he soon left the company with the aim to establish an online retail store for cheap fashion wear.
On exploring further he found out that the wedding dresses of women are some of the most sought-after clothes in the whole world. Besides, he also discovered that the only thing that came in between the international consumers and Chinese products was the difference in their currencies and all the hassles associated with it. He then started selling wedding dresses after founding ZZKKO.
The company eventually forayed into the women’s section of garments and changed its name to “SheInside”. The company further started selling cosmetics, jewellery, shoes, purses, and other accessories in the early 2010s.
Sheinside had around 100 employees by 2013. It further revamped its marketing strategies and soon it became a fully integrated retailer. The company again changed its name to “Shein” in 2015 to make the name easier to remember for everyone. The Shein team became 800 strong in 2016.
Shein’s tagline is “Shine In, Shine Out”. The company held a worldwide slogan competition. After half a month of voting and selecting, the winning slogan emerged. “Shine In, Shine Out” is in tandem with Shein’s goal to be the best shopping platform for all clothing-related needs.
“SheIn” is a portmanteau word containing “She Inside”. There is also lettering in “SheIn”.
Shein – Mission and Vision
SHEIN focuses on providing the customers with value. This is why the company brings quality products at affordable, which don’t break their banks.
“SHEIN aims to provide the highest value trendy pieces while also being dedicated to quality, value, and service”, as per the vision statement of the company.
Shein – Business Model
Shein’s business is modelled on internet-based sales for desktop and mobile users. The company has been proactive in developing a vibrant community. It has a community of like-minded shoppers across various channels. Shein’s desktop and mobile shops include reviews to help customers decide on the quality of the outfits. The shops also come with a style gallery through which shoppers can share their outfits and tagged products.
Shein – Revenue Model
ZoeTop Business Co. Ltd. operates Shein.com. It is an internationally-focused online store. It generates e-commerce sales from a range of countries including France, Russia, Germany, the United States, Italy, Australia, the Middle East, and more. When it comes to the product range, shein.com receives a major chunk of its e-commerce net sales from the “Fashion” category. Next comes the “Furniture & Appliances” category, which helps Shein gain the most.
Shein boasts of its largest market in the United States. The company gains a profit margin from each sale that it drives. Delivery fees also comprise its revenues. Furthermore, Shein also earns some of its revenues by partnering with brands and featuring them on its app. In-app advertisements also help Shein gain some revenue.
The Global net sales for the year 2020 were reported at US$2,764.8 million. Though the revenues of Shein are not publicly disclosed, it has been privately estimated to be $8 billion annually. It did suffer a loss in revenue due to the pandemic in 2020 and when the app was banned in countries like India.
4 investors have funded and invested in Shein so far. JAFCO Asia funded Shein in the Series A round. In the Series B funding round, IDG Capital invested an undisclosed amount in the company. Greenwood’s Asset Management also invested an undisclosed amount in Shein during the Series B round. . The total funding raised by Shein is $4.1 billion.
Date
Round
Money Raised
Lead Investor
May 17, 2023
Private Equity Round
$2 billion
General Atlantic, Mubadala, Sequoia Capital China
Apr 4, 2022
Series F
$1.5 billion
–
Aug 1, 2020
Series E
–
–
Jan 1, 2019
Series D
$500 million
Sequoia Capital China, Tiger Global Management
Jan 1, 2018
Series C
–
Sequoia Capital China
Jan 1, 2015
Series B
CN¥300 million
IDG Capital
Jan 1, 2013
Series A
$5 million
JAFCO Asia
Shein – Growth
Shein’s portal has got from 500,000 to 4 million monthly visitors in 6 months. The company’s traction with Generation Z has been particularly pronounced. The company is tripling its business day by day. It now caters to over 1 million daily active users and handles over 10,000 orders every day.
The platform initially sold wedding dresses, then expanded to womenswear, and has eventually branched into several other categories involving menswear, childrenswear, and other fashion accessories. Today it clocks an average order value of INR 1000 to INR 1500.
Shein grew from a company that was valued at $15 billion to one that is valued at $30 billion, as per the reports in November 2021. The company made a whopping $10 billion during the coronavirus pandemic onslaught that nearly drowned a majority of the businesses. Shein has recorded 100% growth in its sales for 7 successive years in 2020. Shein was hailed as the largest online-only fashion firm in the world in 2020.
Shein – Product And Service
EvoluShein
Global e-retailer SHEIN, which specializes in fashion, beauty, and lifestyle products, has announced that it will collaborate with pop sensation Anitta to launch evoluSHEIN x Anitta on June 17, 2023. This will be the first product collaboration under SHEIN’s evoluSHEIN by Design initiative, which has accelerated the use of more sustainable materials.
Accelera Shein
AcceleraSHEIN, a brand-new worldwide seller empowerment initiative, has been unveiled by the company on June, 22, 2023. Accelera SHEIN offers a holistic system of assistance to all marketplace sellers throughout their journey on SHEIN Marketplace, including training and upskilling, seller benefits and incentives to help them accomplish their business goals.
Shein – IPO
Despite the China-founded company’s recent valuation falling to $50 billion in secondary market trading due to market fears, Shein is aiming for up to $90 billion in its impending US IPO as per news report of November, 8, 2023. Shein’s eagerly anticipated initial public offering (IPO) is still a ways off because of the company’s copyright issues and forced labor difficulties.
Shein – Acquisitions
Shein has acquired two companies to date.
Below are the details:
Company Name
Date
Price
Missguided
Oct 30, 2023
$24M
Make Me Chic
Jan 1, 2015
–
Shein – Investment
Company Name
Date
Funding Round
Price
SPARC Group
Aug 24, 2023
Corporate Round
$24M
Shein – Partnership
Reliance Retail
Industry insiders stated that Shein, a Chinese online fast fashion brand, is making a comeback into India in collaboration with Reliance Retail as per news report of May, 20, 2023, the top retailer in the nation. In June 2020, the Ministry of Electronics and Information Technology banned Shein, one of the apps, following an increase in tension with China along the Himalayan borders.
Forever 21
Online fashion and lifestyle retailer has created a co-branded Forever 21 brand collectionon October 30, 2023 in partnership with shein and global brand development and marketing platform Authentic Brands Group.
Shein – Competitors
Shein’s prominent competitors are Amazon, Romwe, Zaful, Zalando, and Namshi.
Romwe is a shopping platform that caters to both men and women. Tops, bottoms, swimwear, denim, shoes, etc. are available on Romwe at affordable prices.
Zaful is a clothing store for both men and women. New-season styles, and hot sale collections are Zaful’s USP. Students can avail special offers from Zaful.
Zalando is a European e-commerce company headquartered in Berlin, Germany. It offers fashion and lifestyle products.
Namshi is an online shopping store for kids, men, and women. Free shipping, 14-day exchange, and cash-on-delivery are some sought-after features offered by Namshi.
Shein – Future Goals
Shein is upgrading its systems for better consumer experiences. It is in the process of introducing new trends and exciting offers. Shein also plans to expand its business. The company has already started collaborating with Indian designers to create fusion and Indo-western outfits for the Indian audience.
Shein discovered the importance of cementing its position in India. The people living in tier 3 and tier 4 Indian towns want to get their hands on affordable fashion and here’s Shein comes to play. However, due to India’s rising tensions with China, Shein had to shut down operations in India in 2020. The decision affected millions of Indian shoppers who enjoyed purchasing from Shein.
Three years after its prohibition in India, Shein is returning to the nation in collaboration with Reliance Retail. The Indian government granted the business permission to collaborate with Reliance Industries as per news report of June, 22, 2023.
FAQs
When was Shein founded?
Shein company was founded in 2008 by Chris Xu.
Who is the owner of Shein?
Nanjing Lingtian Information Technology Co. Ltd. is the parent company and the owner of Shein.
Who is the founder of Shein?
Chris Xu is the founder of the popular fast-fashion Chinese brand.
Where was Shein founded?
Shein is a fast-fashion company based in China.
What makes Shein so successful?
The success behind Shein is its cheap prices trendy clothes, and fast delivery.
Shein has gained immense popularity among the youth. If you are a fashionista then you must have bought some trendy clothes from Shein at a very low price. The company has been very successful in the ultra-fast fashion market. Shein ships in 220 countries and provides clothes for men, women, and children.
According to research, it was found that in 2021 Shein’s mobile app had over 7 million users in the US alone. The hashtag #Shein has generated over 6.2 billion views on TikTok. The estimated revenue of this company is $10 billion every year. Let’s see the Business Model of Shein in great detail.
Shein is a Chinese international B2C fast-fashion online platform headquartered in China. The company was founded by Chris Xu in 2008. The company sells clothes, bags, shoes, accessories, and other fashion items. Shein’s target countries are Europe, America, and the Middle East. The brand is very popular among Gen Z.
Shein mainly works by targeting the audience who prefers western clothes. As for the target market, Shein mainly works for young people who want to be unique and socially acceptable.
Before we have a deeper look at the business model let’s first understand how the fashion industry works. This will help us better understand the Business Model.
Evolution of the Fashion Industry
In the late 1990s and early 2000s, Zara and H&M introduced the world of fast fashion. Buying trendy clothes from the stores at a very low price was something new to the people.
Zara introduced this phenomenon to the people and made a lot of money. The key components that helped Zara become successful were shorter manufacturing cycles, following the fast-moving trends, just-in-time logistics, and big investments in flagship stores located in most city centers.
This enabled the stores to provide a wide variety of trendy inexpensive clothes that changed every week. Variety, speed, and convenience were the main factors of the fast fashion model.
Until the 2010s this business model worked pretty well. Since then, e-commerce has penetrated the market which led to the growth of mobile commerce. Due to this, the fast fashion industry changed completely.
Ultra-Fast Fashion
Over time many people started using mobile and mobile commerce grew rapidly. Due to the internet, people were able to get information instantly. Everything shifted online. Using social media and other online platforms people were able to understand fashion trends instantly in a very short time.
Fast Fashion evolved to ultra-fast fashion where only a few designs were created to test the likes of people. If the people demanded the clothes they were made in large numbers. The ultra fast-fashion retailer invested all its capital in capturing fashion trends even faster.
Clothes and other fashion accessories were manufactured at a very high speed. Massive money was invested in logistics to deliver products to millions of customers without operating physical stores. Now, as you have understood how the ultra-fast fashion industry works and how the fashion industry has evolved let’s have a look at the business model.
To understand the business model of Shein let’s first see how a fast food delivery company works. There are thousands of ghost kitchens everywhere. When you order food online the food delivery services take the food from these ghost kitchens and deliver it to your doorstep.
Your preferences and the number of orders you place dictate the opening and closing of these ghost kitchens. Shein’s business model also behaves similarly. Shein does a partnership with these ghost factories and promises demand. They install their order system in these factories which helps them to track and deliver the orders efficiently.
Shein teaches them how to manufacture things efficiently. In this way, Shein produces fashion items at a much faster rate. The company understands what things are booming in the fashion industry, produces product pages, checks the engagement behaviour, and then tells the factories to produce the products.
Shein has a strong online presence. After reading about the evolution of the fashion industry and ultra-fast fashion you must have understood that a strong online presence and understanding the fashion trends quickly are necessary to be successful in this industry.
Shein advertises aggressively on TikTok and other social media handles. After working for so long in this industry Shein is able to understand the fashion trends much faster than other companies. The company has further shortened the manufacturing cycles.
The company’s marketing is majorly focused on social media. Shein has understood that social media has a great influence on youth. The company is the #1 brand for TikTok teens.
Shein has an army of fashion bloggers that constantly post content on TikTok using the hashtag Shein. In return, Influencers get free merchandise. On YouTube, people share their experiences with Shein. Since the company provides a large variety of products many YouTubers are interested in reviewing their products.
Affiliate Programs
Shein’s affiliate program has helped the company to increase its conversions. In this program, people can earn a commission by recommending Shein products to others. If they place the order you get a small commission. Due to these affiliate programs, many teens have promoted their products on social media. This has increased the company’s reach.
What’s Unique About Shein?
Shein is the most preferred fashion brand by the young generation. There are multiple things in Shein’s business model that makes it different from other:
Model
To have the upper hand over its competitors the company uses the digital-first model. The digital-first model enables the customers to make a purchase by the means of a digital platform and get it delivered at their preferred locations.
Marketing Strategy
Shein uses a micro-influencer marketing strategy. There are several micro-influencers in coordination with Shein and the company provides them with gifts at the end of each month. This give-and-take relation makes a better marketing strategy for the platform.
An Indian Actress Advertising Shein Sale on her Social Media Account
Use of Social Media
Social Media users have noticed Shein on their screens while scrolling through social media platforms like YouTube, Tik Tok, Instagram, etc. The media influencers contribute majorly to the selling of Shein products at such mediums. This strategy enables Shein to directly showcase its product in the market.
How Does Shein Make Money?
Shein’s revenue model is simple. The company earns money by selling products online. They sell a cheap version of trendy clothes and fashion items via their mobile app. The company uses the vertical integration strategy.
Shein earns its revenue in multiple ways. The most preferred method is by selling clothes. Shein purchases clothes in bulk quantity for a cheaper price and then sells them at a higher percentage.
Apart from this, Shein also replicates the high-end dresses to sell them at relatively lower prices. This practice also increases the sales of Shein and hence making an additional column in the money chart.
Apart from all the above money-making options, Shein also provides in-app advertisements on its platform and generates some revenue through it too.
Shein Revenue for 2020-2022 in US Billion Dollars
Conclusion
Shein understood fast fashion better than other companies. As the company provides a large variety of products at a very low price many people love shopping through Shein. The company has a lot of Influencers on various social media platforms which helps them to increase its popularity.
In the west, many people prefer Shein over Amazon. This shows how much the company has grown over these years. To stay in this race for a longer period the company needs to identify the fashion trends quickly and provide those clothes to the people before it gets out of fashion.
FAQs
Who is the CEO of the Shein?
The current CEO of Shein is Chris Xu.
Who owns the company, Shein?
Shein is owned by a parent organization named Nanjing Lingtian Information Technology with four major shareholders named JAFCO Asia, IDG Capital, Sequoia Capital China, and Tiger Global Management.
Why is Shein so successful?
There are numerous reasons for Shein to be counted as a successful firm. Some of the factors responsible for making Shein successful are its effective marketing strategy, customer value, and brand model. Shein values customer satisfaction over profit and is in a give-and-take relationship with its influencers to advertise.
Is Shein a profitable company?
Shein does not provide many insights into its financial details. However, with the available information, one can easily estimate that Shein is a profitable company.
Fashion standards have changed on a daily basis in response to trends, customer preferences, supply and demand. To maintain a favourable result, fashion enterprises should keep an eye on the market every day by manufacturing new designs that could bring good results.
Have you heard of Paris Fashion Week, where celebrities and models dress up and walk the catwalk to show off the latest fashion collections from designers? In simple terms, well-known celebrities such as Gigi Hadid, Kendall Jenner, Adriana Lima, Cara Delavigne, and others walk the runway by introducing new low-priced stylish clothing that was designed by well-known or up-and-coming designers to influence a new line of clothing/accessories to retail stores that can create trends and boost purchase-power among audiences.
Fast fashion business developed in the late 1980s, with the market-based model by bridging the gap between creation and consumption by positioning this as a quick, low-cost, and disposable item.
Fast fashion retailers such as ZARA, H&M, Gap, UNIQLO,Louis Vuitton, Shein, and many more operate on a seasonal basis, with new outfits and accessories arriving in stores every four to six weeks, often more often than the rest of the fashion industry.
Furthermore, it varies by company; for example, ZARA receives new clothing supplies twice a week. In Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, The United Kingdom, and The United States, fast fashion is usually sold through physical stores or online auctions. Aside from that, the top nations for sourcing fast fashion clothing and accessories are India, Cambodia, Vietnam, Indonesia, and Turkey.
Fast Fashion became so ubiquitous and successful that you could buy runway clothes or upcoming trends apparel from popular brands such as H&M, Zara, GAP, and others in advance at a discounted price before they hit the stores. From creating mass production of new clothing lines, selling them at low prices, standardizing fashion styles in advance, earning tons of money out of it to making a trend in the future- fast fashion businesses benefit a lot.
Target Audiences
Fast fashion businesses usually cater to consumers who value fashion above all and can buy the product. Even persons with a middle-class income may afford and buy clothing from fast-fashion labels.
Fast Fashion Business Model
Before the 1980s, fast fashion businesses were product-driven, but by the late 1990s, they had evolved into a market-based business strategy. The fast-fashion industry, in particular, embraced two strategies: Management Style and the Quick Reaction Approach. Fast fashion management is used to meet people’s demands for aestheticism by wearing the newest and most fashionable clothing styles promptly. In the textile business, quick reaction methods are used to improve manufacturing techniques to remove time from the production system. Fast fashion is also linked to other market categories, such as premium and luxury, that use a supply chain acceleration and continuous supply approach.
What’s Unique About the Business Model of Fast Fashion Brands?
A company’s profit strategy is referred to as its business model. It specifies the items or services that the company intends to sell, as well as the target market it has identified and any expected costs. For both new and existing businesses, business models are crucial. They assist new and growing businesses in attracting capital, hiring top personnel, and motivating management and employees. Established companies should keep their business strategies up to date regularly, or they will miss out on future trends and issues. Investors use business plans to assess companies that they are considering investing in.
A business model is a high-level strategy for running a profitable business in a particular market. The value proposition is an important part of any business plan. This is a description of a company’s products or services and why customers or clients find them appealing, ideally articulated in a way that sets the product or service apart from its competitors.
Sales Revenue of Various Top Fast Fashion Brands
The business model for a new company should also include expected beginning costs and funding sources, the organization’s target client base, marketing strategy, a competitive analysis, and income and expense predictions. The strategy may also include ways for the company to collaborate with other well-established businesses.
Successful firms have business strategies that enable them to meet customer needs at a reasonable price over time. Many organizations update their business models over time to meet changing market conditions and demands. When considering a company as a potential investment, the investor should learn how it earns money. This entails investigating the company’s business model. The business model, however, may not reveal everything about a company’s prospects. However, an investor who comprehends the company strategy will be able to make more sense of the financial facts.
There are as many different kinds of business models as there are different kinds of businesses. Traditional business strategies include direct sales, franchising, advertising-based, and brick-and-mortar storefronts, for example. There are also hybrid models, such as companies that combine online retail with brick-and-mortar stores or with sports leagues like the NBA. Within these broad categories, each business plan is unique.
Fast fashion, as the name implies, manufactures and rapidly produces new apparel products for audiences before they emerge in offline stores. Many reputable brands, such as ZARA, Calvin Klein, Louis Vuitton, Gap, Forever 21, and many more, sell their latest designed clothing lines to audiences at a cheap rate in advance during fashion week, which is then sent to shops as a mass-production to fulfil revenues and trends. Furthermore, a fast-fashion business advantages a company in a variety of ways, including purchasing the latest products ahead of time that creates timely trends, designing and varied styles of clothing availability, low-cost production, reasonable costs, and quick profits.
FAQs
What is a fast-fashion business?
Fast Fashion is a term used to describe apparel and accessories that are created to follow current industry trends but produced with less expensive materials to keep the price low. Fast Fashion has been popularized among regular consumers by apparel companies such as H&M, Zara, and Forever 21 over the previous two decades. UNIQLO, GAP, Primark, and TopShop are among today’s biggest fast fashion brands. While these brands were formerly thought to be radical low-cost challengers, Misguided, Forever 21, Zaful, Boohoo, and Fashion Nova are now even cheaper and faster alternatives.
What are the topmost fast fashion businesses?
Zara, H&M Group, UNIQLO, GAP, Forever 21, Topshop, Esprit, Primark, Fashion Nova, and New Look are all major players in the fast-fashion sector. Many businesses are both merchants and manufacturers, while the actual production of garments is frequently outsourced.
How do they make money out of it?
Fast fashion can only make money if it sells a large number of items, which it does. They enable retailers to provide their customers with current product offerings regularly. The global fast fashion market was expected to be worth $35.8 billion, according to fashion industry figures. Every sector was shaken in 2020, and we all know why. Fast fashion is expected to be worth $31.4 billion in 2020, showing a –12% compound annual growth rate.
All over the world, the clothing industry is worth thousands of billions of dollars. You go to your nearest market and you will find that clothes are the items that are evergreen in nature. Always present and omnipresent. Every business-minded person when thinking of a business idea, his/her first choice is to choose clothes. This is true most of the time. There are huge players and then there are normal players in the clothing segment. However, The demand is such that every brand has enough to fill its pockets.
China is the most populous country in the world. Everything that The world needs, is needed more in china. It is safe to say that China is a value magnifier or a demand manufacturer. One of the clothing brands in China is called Shein. It is a famous brand and is founded by a very amazing personality. The founder of Shein is Chris Xu. This article talks about the company Shein and the founder who is often regarded as the torchbearer for this mysterious clothing brand. Let us have a closer look.
There is a reason why we began talking about the founder before we start talking about what he has actually found. Chris Xu is the founder of Shein, he is a popular entrepreneur in the world and specifically in China. He is the torchbearer for the brand from the initial stages. He built the brand so mysteriously that he is respected for the vision and works that he had pulled off.
He has achieved so much significance in the fashion industry that he becomes no less than a pioneer in this industry. Chris has been an entrepreneur who has been able to start from zero and scratch and then make a name for himself. Interestingly, the person behind Shein is an mysterious man. He has a name and the work that he has done, that speaks for itself and nothing else.
By the term, nothing else, we mean that the man does not even have a Wikipedia page. This is super mysterious and intriguing at the same time. He is super hideous on the internet. As the world becomes smaller and smaller with each passing day with uprising technology, he remains in his mystery palace. According to us, all this blackout about his information and interviews have been intentional.
All the information that is related to Chris is hidden intentionally all over the internet. The reason behind this agenda can be the security and integrity of the person’s name in public. However, there can be multiple more reasons for doing that.
Let us have a glance at his career. This is by the way rare information. Chris Xu was born in 1984 in the city of Shandong. He graduated from the University of Qingdao in the field of science and technology. He graduated in 2007. Soon after graduation, he moved to Nanjing to work in an integrated marketing consulting company.
Nanjing Aodao Information Technology Co, in 2008, where he specialised in SEO. This is also a fact about Chris Xs that he is an expert in SEO or search engine optimisation. While working in Nanjing integrated marketing consulting company he learnt everything possible about SEO. He did get a fair bit of exposure in the organisation of selling and commercial activities.
After learning the nuances of commercial selling of Chinese goods to the international world, he thought of an opportunity. He left the company following that vision or the opportunity. At the inception, he started building this dream with two other entrepreneurs who were now the co-founders. The idea was to ship cheap items online to every person. Basically an online retail store of the first kind.
In choosing the items to sell, Chris found out the huge demand that wedding dresses operate with. He discovered that these were one of the most highly sought products that were demanded by international markets. These dresses could become the first segment of products that the company will offer. However, there were some issues too in the first place.
Foreign customers were not buying these dresses and the reason was conversion rates. Customers were not able to convert money to buy their desired products. That was the issue that he thought to solve and started to shift all his focus in finding solutions to that. With the money earned from selling wedding dresses in the country, he began building SheInside, which is now famously known as Shein.
According to QQ news, once Xu realised that the only thing stopping international customers from buying products was currency conversion, he ‘vanished’ with his entire SEO team.
Let us now focus on the brand that this mysterious man has built for the world. The fast-fashion retailer ‘Shein’ is here with its journey that is full of controversies.
A Small Brief About Shein
‘SheInside’ was the primary name of this organisation and gradually the name became Shein to the world. Even though the first sort of dresses that Chris picked were wedding dresses, they diversified into a lot more domains afterwards.
They diversified into summer wear like bikinis and swimwear which was designed for the summers. They were low price and that was a huge differentiating factor for customers. It became the first thought of girls when they thought of summer wear and as summers approached every year.
The journey was not easy though, there were many ups and downs in the way. They caused several controversies at the beginning pointing to the cheapness of the products. There were allegations of child labour, environmentalism and the quality of the clothes. There is a mystery of the process with which the company operates. Despite all the problems, the company has been able to maintain itself as a trustable brand with its audience.
Inception of Shein
The story of Shein begins when Chris Xu thought of starting out his own venture. Before starting out with Shein, Chris owned a successful wedding dress company and gave it up all, to begin with, a new venture. It was in the initial stages when the name “SheInside” was chosen.
It was later in 2015 when the name was changed to Shein as the efforts of branding grew and as the brand emerged as a favourite destination for clothing. The United States was the place where the company was widely successful and still is the place where most of the revenues come from.
The story really started when an American born graduate gave up his business of wedding clothes in search of building a sustainable clothing brand. They acquired the domain name called sheinside.com and primarily focussed on women’s clothing. In 2015 the name was changed and renamed to Shein. It now focussed on the overseas markets and began riding its way into the fashion industry. Which proved to be fruitful in the future.
Through all the ups and downs, it has managed to become a brand in the clothing world. The United States has always been a really good market for these guys. The United States still is Shein’s biggest market. It ships to almost the whole world. It has revenue streams from 220 countries with websites built for Europe, the middle east, Australia and the United States has been ignited by a series of funding rounds. That was the series E funding for the company that happened in the pandemic year 2020. With this funding in hand, the company got a decent valuation that exceeds the 15 billion dollars mark.
Speaking of the nice valuation, it is also noted that the revenues are not made public. The revenues are in some excess of 10 billion dollars. Which is a really pretty number and proves satisfactory growth.
Taking in mind that this number estimate was coming in the pandemic year which was the most difficult for companies. Not many people were buying new clothes to go out. It was all lockdowns and virus precautions. These amazing numbers really attract Asian investors and international venture capitalists and private equity houses among its capital structure supporters.
The Core of Shein – Fashion Predictions
For most of the time, Shein is identified with clothes and as fashion retail, its core is just identification and predictions. It is often mentioned and said that Shein as a company is deeply obsessed with identifying hot fashion and trends. The company is often seen to predict the type of clothes, fabrics and style statements that will mostly go viral in the coming dates. It has even been reported that it has a faster fashion cycle than the Zara. It has a good social media activeness index and markets heavily on Instagram and manages to continue that trend across social media platforms. It tries to make an impression of a Weibo friendly image for attainable and accessible fashion clothing across all the social media.
As mentioned before, the brand has seen ups and downs in the same proportions of magnitude. The success of this brand does not come easy. It has had many incidents that have shaken the base of the company. For instance, the company was condemned to list a pendant that was shaped like a swastika. The problem and the error was later apologised profusely.
The products are all over social media and they have managed to create a brand image for themselves. Shein uses celebrities as well as fashion influencers to elevate the vision and create an image for the clothing line. Most of the operations are online and they do have offline stores too.
The branding from this company has elevated the low quality and low-cost reputation that was allegedly established in the beginning. They have managed things well even during the pandemic. They had an event hosted called SHEINTogether which was streamed globally in May 2020. Artists like Katy Perry, Rita Ora were roped in for the show.
They still manage the repute that they have built over the years. The cloth brand that started in China went from being homegrown to becoming a key player in the clothing segment in the world. Before 2014, Shein didn’t even have its own supply chain. This is mysterious in all senses but it is also true that it is sheer hard work and consistency from the brand’s side. Let us catch a glimpse of the marvellous emergence in the world today. First, let us see the potholes in their way of work.
Controversies Faced by Shein
One of the biggest controversies that the clothing brand started was child labour and abuse. The claim comes after customers begin questioning the cheap products that the company was able to produce. There were allegations of child abuse and child labour to be involved in the matter. Even though, The website of Shein and in all the legal announcements of Shein, the company has maintained to announce that they are strictly against any sort of child labour.
One other concern which concerned consumers all over was carbon emissions. A report mentioned that they keep all their emissions in check and that the magnitudes are within limits. Fast fashion is a subject line that can have a lot of pain points. The fact that it is fact, also makes it full of residuals. These residuals are mostly harmful to nature. If a brand is able to manufacture quality with less price, they face allegations of child labour, which happened with the clothing brand Shein.
“Shein is one of the only large retailers that orders 100 pieces or less for new products to help eliminate dead stock – which makes up 10% of the carbon emissions across the entire supply chain for the apparel industry. Shein is fully committed to upholding high labour standards across the entire supply chain and to improving the lives of workers in the global supply chain by supporting national and international efforts to end forced labour.” A company’s spokesperson explained
The other thing which was pointed out by consumers and critics was that the brand is super secretive. Following the products which it goes by, Shein is a fast-fashion retailer, it maintains all the secrecy in the world. Even the information about the founder of the company is rarely found on the internet. Social media and websites are maintained properly but there are no guest and news appearances. This opaqueness by a brand raises many eyebrows.
Overall, Shein (previously She Inside) is a complete mystery. No phone number, no email and certainly no press contact was to be found online. Even the name of its founder remains a total enigma, as El Mundo reports. This seemingly opaque company relies mostly on digital marketing and bloggers to get you hooked on their products, rather than divulging anything about their supply chain transparently. – Euronews reported.
Emergence of Shein
It is amazing to notice that the brand didn’t have its own supply chain up until 2014. They used to buy their clothes directly from Guangzhou’s Shisanhang Garment Market. It is a wholesale market in China that is famous for the clothing segment. Soon when the company began running operations, it was hit with strong demand. Watching the demand trend, they soon realised that they will have to become self-reliant in everything. From getting their own supply chain to managing shipment and everything else.
Realising this, preparations were made to go more independent. Chris created a team, or we should say assembled a design team. It was an in-house department that works within the specified locale. Within the first two years, the team expanded and there were now 800 people in the design team. This move was not only focused to improve designs but also to save time. The design team made the designs and prototyping efficient and thus rapid. This ensures that time is saved and it lies with the company’s goal of fast fashion. This has also generated a good demand for its new launches.
Adding to the above, the company has also initiated timely payments of the products that it offers to china. Getting payment in time was a rarity in China but Shein doesn’t go with it. With this effect, Shein moved its operations and supply chain from Guangzhou to Panyu in 2015. Taking forward this effect, all the factories that operate under the brand have to relocate their factories for cost control measures.
The year of relocation of factories was also the year in which the brand entered the Middle East market. The sales were big even in the initial stages. The revenues for fiscal 2016, Shein earned 617 million dollars in revenue. In 2017 those revenues soared 1.5 billion dollars.
Market share data from Earnest shows that Shein began 2021 with 13% of total Fast Fashion sales, trailing traditional leader H&M. Since January, Shein continued to gain share and now leads with 28% of the Fast Fashion market, with Zara the only other brand growing share during that period. – Earnest
The future plans for this venture are even more optimistic. They want to include mobile payments into their operations and they want to get more into the supply chain finance division. In the modern world today, they are also hoping to do more advertising to market products. Nonetheless, they are also looking forward to adding more brick and mortar business centres out there. As retail stores also add a lot of magnitude to the revenues. All this growth and emergence from nowhere is not magical, even though it is mysterious but it also acts as proof of work.
Clothing is one of the most favourite items in the world. People love to dress up and that is the basic thought that works behind the scenes of the fashion industry. Fast fashion is the new trend that companies try to capitalise on. They are trends that come and go. This might seem easy but it is a lot of work that goes into fast fashion. Zara is a fast-fashion retailer and Shein also comes on the list. A lot of companies are built from the fashion industry. In fact, Fashion is really a big strong word.
We discussed a lot about Shien and its emergence as one of the leaders in the market today. The brain behind the brand is Chris’s and he is as mysterious as a Hollywood movie spy. The zeal that the company shows is indefinitely inherited from Chris Xu’s vision in the mission. He is one of the most hard-working and well sought after entrepreneurs in the land of China.
With almost no fingerprints whatsoever on the internet. He has been a learner for most of his life and he definitely thinks with first principles. Let alone the business accomplishments, he has practical knowledge and a way of looking at things. It is not a fast skill to learn but is built over time.
FAQs
Who is Chris Xu?
Chris Xu is an SEO expert and the founder and CEO of mysterious fashion e-commerce website, Shein.
Who is the CEO of Shein?
Chris Xu is the founder and CEO of Shein.
How did Chris Xu start Shein?
Chris Xu used to sell wedding dresses, after looking at the popularity he thought of starting his own fashion retail company. He started SheInside with his team and later changed the name to Shein.
Chris Xu is a Chinese American, who is the founder and CEO of the most iconic fashion domain Shein. Since his heyday in 2008 began, he has been known as the notorious e-commerce venture.
He is a Chinese born in the United States, where he did his graduation from Washington University. Before Starting with his idea of making Shein, he was a member of a trading premium enterprise-Nanjing Aodao.
Moreover, he fit into everything all by himself from self-designing his products to generating customers to make a purchase- Multi-Talented in sales, marketing, revenue, and supervision. His hard work really paid well towards making Shein, which developed as an eminent empire of fashion all over the world.
Chris is the Chief Executive Officer of the notorious fashion B2C platform and the sole creator of Shein which vends various products such as accessories, clothes, Application software and shoes underscoring on women and kids.
Chris Xu’s determination on creating the fashion portal is stupendous as he recruited fashion designers from different parts of the world to contribute the best products according to customers’ preferences, And He did it.
In the meantime, he mastered the marketing field especially in Search engine optimization (SEO) and launched his long-held aspiration ‘Shein’ in 2008. As a means to accomplish the Shein globally, he partnered with designers. And now, he is one of the richest men and renowned entrepreneurs.
Top 10 Unknown Facts about the founder of fast-fashion platform ‘Shein’ Chris Xu:
Chris Xu created Shein with the money, he earned by selling wedding dresses
Chris Xu implemented his idea of creating fashion stuff at an affordable rate commenced in 2008 where he espied that wedding dresses are one of the most highly-trending as well as expensive products from international markets.
So he sold his wedding clothes at a bargain-basement range to customers, there, he began the process of building Shein with the money he has earned by selling his wedding clothes.
He analysed the demand of people and worked on fashion which gravitates among gen Z.
Chris Xu is known as SEO pro
When he moved to Nanjing and worked as an integrated member in the marketing consulting company- Nanjing Aodao Information Technology. Being a part of the marketing department, he became a pro in SEO and leads the technical tools by himself.
Chris Xu created the Chinese fashion Empire
He began this most popular fashion platform with an aim to improvise the currency conversion, where he faced the issue which stopped international customers from purchasing products.
Chris Xu shaped a designer team
He formed a designer team in order to attain global recognition, so he partnered with many designers by assigning 30 per cent commission for their work.
Chris Xu’s plan for Shein mainly focuses on collaborating with young designers. The program is termed “Shein X”. The program supports rising designers who lack resources to get a breakthrough and their talents to get noticed.
The inaugural group of designers for this program are seven creatives who offer fun, unique and fresh designs. The partnerships are for three months which can be extended further. And the next batch of seven designers will be selected through an application process.
On June 29, 2020, the Central Government of India banned 59 Chinese applications citing privacy concerns as the reason. Shein was one among the 59 applications and was alleged that the customer data was being stolen and was transmitted to locations outside India in an unauthorised manner.
Shein issued a statement in this regard on 8 July 2020, saying that the company was working diligently on preparing and submitting significant documents required by the Indian Government that comply with the new policies and that customer privacy was its top priority.
Chinese don’t know Shein founder
It is difficult to believe that a company as famous and successful as Shein and its founder isn’t known in the country in which it considers as a product headquarter, is it not? Shein has its headquarters in Guangzhou, China where its production takes place. But the company is engaged only in the exports business making it unknown to Chinese consumers, thus making Chris Xu another human being in the masses to the people of China.
Shein has had its share of controversies in the past. In July 2020, the company was caught in the headlines due to selling a swastika pendant which was identified as a Nazi symbol.
The company apologised via social media post stating that the pendant was meant as the Buddhist symbol that stood for spirituality and good fortune.
Another controversy that Shein faced was because of a phone case that had a black man cuffed with a white border. After severe backlash, the product was removed.
In addition, the general controversy that Shein might be a scam site as the products were sold at a price that is less compared to most brands targeting women as their customers.
Chris Xu’s Net worth
The net worth of the online fashion platform exceeds $15 billion. The company ships its product to 220 countries and the US is considered Shein’s largest market.
The company also earns income through YouTube and other platforms. The revenue data of the company isn’t established but the income is estimated at $10 billion annually.
Conclusion
Creating a brand that does not have a physical presence but is recognized and has held its top place in the industry for years is no easy feat. Chris Xu is the man behind this massive success. His idea’s fruition has been a lifeline to women around the world who want to celebrate fashion but at an affordable price. And the mystery created due to the lack of information on this dedicated billionaire CEO only adds up to the allure.
FAQ
Who is Chris xu?
Chris Xu is the founder, entrepreneur and CEO of the renowned fashion platform Shein.
What is the net worth of Chris Xu?
According to the reports, it is estimated that Chris Xu’s net worth was around 15 billion, with a ten thousand sales turnover per day.
