Ma Yun, Liu Qiangdong, Huang Wei wants to do but not yet, he is made
Wen 丨 华商
There is no online store, 90% of the Chinese have never heard of it, but the young girls who make most elands are addicted. After this hidden China 80, why did this a unicorn of 300 billion yuan?
[“Two years to surpass ZARA”]
Pressure Tencent, Air China, Dasheng, in the 2021 Brandz China Out of Hai brand 50, ranked 11th.
Replacing Amazon has become the largest shopping application in the United States; transcend Nike, ZARA, LULULEMON and ADIDAS, among the top flow of the global fashion standing station.
The daily send parcel is more than 1 million orders, which is expected to achieve the goal of “two-year sales surpass ZARA” in advance.
The registered users will be 120 million, more than 30 million live, in the global TOP 10 fast fashion brand mobile DAU, accounting for more than half.
▲ April 2020 – April 2021, the top ten app on the world’s fashion: AppTopia
This is no Chinese name, from the beginning, there is only a Chinese brand shein, which is playing Chinese consumers, only the achievements of 7 years.
Compared with the rapid rise, Shein is more scratched, subverts the old world’s fast-fashioned old order, and a growing wind and waves in the global garment industry chain.
In the cold winter, Zara, H & M et al., Zara, H & M et al, develop e-commerce self-help, but still difficult to save the decline in revenue, one side of the biggest largest closing store.
In the 2020, Zara closed 213 stores, revenue of 141 billion euros (about 108.2 billion yuan), plummeted to the 6 years of the trough.
H & M days are not good. In the first half of 2021, H & M Group closed 105. In the second quarter of this year, its sales in mainland China decreased by 28% year-on-year, with a loss of 479 million yuan.
In contrast, shein welcomed the explosive growth.
From 2017 to 2020, SHEIN overseas market sales are 4 billion yuan, exceeding 10 billion, close to 30 billion yuan, about 65 billion yuan, and climbing. Even in the past 2020 in the epidemic, Shein continued to increase by 100% in a consecutive year.
Compared with ZARA and other giants, whether it is an asset scale, organizational architecture or store quantity, Shein is unable to look back, but based on the Chinese factory, there are more than 2,000 suppliers, SHEIN’s supply chain energy is even slightly won.
Take ZARA’s parent company InditX as an example. In 2020, it was impacted by an epidemic. Its Asia and European suppliers were greatly impacted, and the supplier system was sharply reduced by 1805.
SHEIN has used e-commerce models and light assets from the beginning, which greatly increases its winning rate. During this process, choose to make in China, with lower cost, and more sensitive supply chains, is considered key to Shein to stand out.
Today, in the top five traffic sources of Shein, Zara’s large capital Spain appeared in the third.
▲ May 2021 SHEIN top five traffic country Source: semrush
From the unknown grassroots, the fast fashion giants can’t ignore the “kick people”, how did the founder of SHEIN do this?
[Crouch 12 years, from zero to everything]
In 1984, Xu Yang was born in Zibo, Shandong. The public information shows that his young age is in poverty. Because of the limited family conditions, he even often uses the soy sauce to hunger, starting from high school, and university is half-way.
▲ Source: Xu Yangtian Facebook account
In 2007, he graduated from the International Trade Department of Qingdao University of Science and Technology. He entered Nanjing Otao to start SEO (search engine optimization). Although the company’s scale is small, it is the first cross-border e-commerce marketing service provider. .
In addition to work, Xu Yangtian also opened a similar company with two partners, name only information technology Co., Ltd.
At that time, China’s cross-border e-commerce pioneer Lanting is the first to sell the wedding dress of Suzhou Huqiu overseas.
A wedding dress of a cost tens of dollars, the domestic price is 200 yuan, and it is up to 1000-2000 dollars in the US. Lanting is awarded this opportunity, and each wedding dress sells $ 200, and it has quickly accumulated the good reputation of the goods and is sought after by American consumers.
For a time, the domestic equivalent of the imitation is also one of them.
In 2009, the new company was founded less than a year, Xu Yang Tian also wanted to develop in this direction, and the two partners did not agree. Differential intensity, finally he took the team “single flight”, the latter can only passively.
In 2011, Xu Yang Tian’s first bucket of gold earned with wedding dress, won the domain name of Sheinside.com, built a separate station, and became a full-class platform for clothing. At the end of the year, Xu Yang Tian completely waited from the wedding business with low repurchase rate, and made full efforts into trend women’s clothing.
In the early days, he directly put the fashion photo of the Guangzhou wholesale market on the Internet, there is a customer order to order, explode, add the replenishment.
Xu Yangtian, which is born, has a wealth of experience in building, operational and e-commerce platform, and operation promotion. In 2011, when overseas social media had just started, he became the first user of the overseas version of the small red book Pinterest, expanding its largest traffic pool with very low cost, and completed the initial accumulation through net red belt.
On January 11, 2013, Xu Yangtian announced in Facebook high-profile, “the company has developed rapidly, and more than 50 employees have been developed!”
Nowadays, the SHEIN global staff exceeds 25,000.
The outside world is just the expansion speed of Shein, but in fact,
Today’s results originated from the beginning from the beginning, focusing on the concept and layout of the brand and supply chain.
In 2012, the Sheinside website accumulated that the registered user exceeded 250,000. Based on the huge user, in order to do a deep, Xu Yang Tian has established a professional buyer team, but also enters the upper reaches of the garment factory, strictly control all the processes from purchases to transactions.
“Do brand, style is the soul, you must find a professional person, and use professional ways.
Just find a batch of cheap and sell-selling goods, just use any way to sell, this brutal growth path is increasingly. “
Xu Yang Tian said.
In 2014, it was the key year of SHEIN development.
In this year, Xu Yangtian not only completed the “Shein” brand to renamed, but also established a fast fashion brand positioning of Zara, and also personally personally.
Go to the complete Guangzhou Panyu, which has been complete in the costume industry chain, has built a 800-person design playing team, layout, the fastest 7-day digital supply chain, which is faster than Zara 15 days.
Such speed requirements, the challenge to the supply chain is very large, and there is no factory is willing to order, because once the production will mean a loss. In order to win the trust of the factory, Shein took the initiative to give subsidies, and cope with 30-45 days, and actively undertake the inventory pressure.
At that time, most foreign trade e-commerce companies were attached to third-party platforms such as Amazon, AliExpress, etc., very few people are willing to do dirty living activities, SHEIN, dead supply chain, active transformation.
Xu Yangtian’s underlying logic is very clear, “” (Doing foreign trade) does not look at the products and services, try his best, and make a little bit. “
Control the supply chain so that SHEIN can maximize cost reduction, form a powerful price advantage: even if the ultra-low area of the item is 10-30, it can be profitable.
On the other hand, SHEIN’s growth is inseparable from the god assassination of capital.
As early as in early 2013, Sheinside was online, and the mobile application of the PayPal payment system was online. After half a year, the mobile revenue accounted for 15%. This year, I am rich in Asia invested $ 5 million, betting the shein’s A round.
In 2015, Shein acquired a cross-border e-commerce tidal brand Romwe, mainly to see its supply chain, mobile and brand operation experience, transferred from the goods to the finestills, and increased in the APP operation.
After the iDG’s B-round financing was obtained in 2016, Xu Yang Tian was put into the mobile.
Although the APP development, operation and maintenance, the promotion is only 500,000, and 30 people can also raise 30 people, but Xu Yang still insists on the route, because:
App is equivalent to the self-built fish pond, and the third party platform is fishing in the sea, the flow is nasal.
By 2017, Shein finally ushered in explosive growth. In 2018, its GMV exceeded 10 billion major off.
After that, the “high wall” SHEIN has maintained a rhythm of a round of financing.
In last year’s E-round financing, SHEIN valuation has been as high as $ 15 billion. Sequoia capital, the cubs, and the Tiger Fund and other star institutions have blessed.
Then, Shein accelerates the pace of business expansion.
The scope of the power is further extended to 18 hot fields, covering pets, beauty, shoe bags, accessories, swimwear, large size women’s clothing, children’s wear, men’s clothing, home, etc. Billion-scale categories evolved into a one-stop platform similar to Amazon.
At the same time, Shein also tried to tear off the cheap label and launch high-end brand MOTF and independent websites.
In terms of investment, Shein builds the ambition of the huge empire and gradually emerged. At the beginning of this year, Shein invests in the United States outdoor home appliance brand Outer, and combined with Xiaomi to acquire cross-border electronic consumer brand Pretty. Soon, SHEIN also sold $ 5 wireless Bluetooth headset.
SHEIN Move General Manager 旸 旸 旸 为, 相 并 并 是 是 是 是 是 是 是 是 是 是 是 是 是 小 是 是 是 小 小 小 小 小 小 小 小 小 小 小 小 小. 小 小……………. 多. 多……………. 多… 多. 多………… 版 版. 版. 版 多 版 版. 版 版 版
[The moat river is wide and deep]
The way shein’s success is to sell fashion women’s clothing with the ultimate price, and the algorithm is recommended, net red marketing, social operations and other Chinese rockers and other Chinese rockers. It has achieved a reduction strike in overseas overseas that mobile e-commerce underdeveloped.
Internet companies with other successful sea do not have two, the underlying technology is the foundation of Shein.
The company’s latest recruitment needs show that the technical positions have a three-third of the design, manufacturing, supply chain, warehousing logistics, online operations, etc., and is a personalized recommendation, search, algorithm architecture. Provide powerful technology support.
▲ SHEIN operation flow chart Source: Zheshang Securities
By crawling Google hot words and social media epidemic trends, Shein can accurately judge the popular trend, refine to color, pattern and style, fast linkage with the manufacturing end, fastest 3 days to turn pictures to products.
With more than 2,000 factories complement the flexible supply chain, SHEIN is low-cost, and the rapid large number of new and maximizes every epidemic trend of the long tail market.
SHEIN official website shows that June this year, the average daily new women’s clothes close to 4,000. 4 days, catch up with the new quantity of ZARA.
SHEIN also passes through small batches, rapid scrolling, the explosion rate is as high as 50%, which realizes low inventory or even zero stock. In this way, the inventory of the garment industry has formed a flywheel effect.
The light products are not enough, through content marketing and social marketing, Shein’s painstorm has built its own private domain flow pool, and its PC-terminal flow and mobile phone traffic accounting are 53.7%, 46.3%, respectively.
Semrush data shows that
In May 202, the direct traffic of the Shein Sublite accounts for more than 50%, and three quarters of the search flow are self-traffic.
▲ May 2021, Shein Sub-station traffic traceability and goal: Semrush
App is also an important traffic storage pool, such as “toxic” shake, this is a massive content, dazzling fashion labyrinth, more than low price, but also discontinue all year round, once the consumers are immersed, they will not stop.
In order to make the product accurately access the user, put on Google Advertising, Shein has penetrated six social platforms such as Facebook, YouTube, Tiktok, etc. since 2012, and the whole net is more than 50 million.
Search for Shein in Youtube, jumping out is a tens of thousands of outboxes, covering the head, waist, and tail net red blogger. Even Justin Bieber’s wife Hailey, the fruit sister Katy Perry is personally for Shein.
The interaction of Shein and the fans is very walked. The picture in the post accounts for about 90%, and the subject matter is mainly pets, women, and landscapes form a huge flow entrance.
In Instagram, Shein official has more than 2 million fans.
SHEIN’s Tiktok official account is currently near 2 million, # shein # Label, viewing nearly 9.1 billion.
On the warehousing logistics, Shein has also put a lot of heart blood. In its supply chain, there are 80% of human investment on warehousing logistics, and the operator of the warehouse department exceeds 10,000.
As early as 2013, Xu Yangtian will make determined to build a position overseas to improve customer delivery experience and compress logistics and storage costs to the ultimate.
At present, Shein radiates the world through Foshan’s domestic central cohance, and is distributed over 220 countries and regions with overseas transfer and overseas operations.
Today, on delivery, even if you need 10 working days, in the face of high cost, consumers will not mind.
[Shadow and Controversial]
However, behind the gross growth curve, the controversy has not stopped.
First, it is a violation of intellectual property.
According to the British “Financial Times”, the Martin boots, Dr. Martens, is prosecation of Shein selling fakes, the same Martin boots, selling prices but not one-fifth of Martin boots. SHEIN denied these allegations.
As early as 2018, Shein was complamed by Levi Strauss, and was referred to as the “arcuate” geese sewing of the backbag of the latter jeans. The case is under court and the inner people.
▲ Left is Levi Strauss, right SHEIN Source: California Tribunal
Under the topics of “Resist Shein” on Twitter, many original designers accuse Shein directly stealing their ideas.
On June 12, the model MARIAMA Diallo, US model, claims that Shein is unlocked to move her original dress. A few days later, Shein went this explosive product in many countries.
At the fast fashion industry, plagiarism, plagiarism, has become a tutrain. ZARA, H & M and other giants have been involved in plagiarism, which is also a rushing shein difficult to get rid of.
SHEIN must also face it, more and more competitors, global Aliexpress is secretly hatching the fast-fashion cross-border standing station of Siki Shein, which will inevitably increase the fierce level of competition.
Looking for, the role of Shein is also facing challenges in the Chinese costume industry chain: it compresses the profit of the factory with ultra-low price, which is overdown to the China supply chain, exacerbated the industry’s internal coils.
According to the 2021 supplier recruitment plan released by Shein, the supplier needs to deliver within 7-11 days and has a quick return capability that undertakes 100-500 small orders. The ultimate low price and high-speed operation load have given a considerable pressure, but these plants have no choice of power due to SHEIN’s strong position.
From the comprehensive strength of global scale, branding, Shein has a gap between SHEIN and ZARA, and the epidemic is just a pleasure of counterattling lines. The SHEIN brand is weak, and it is the pain of the Chinese costume industry.
Take Zara’s way to let zara go without roads.
Although winning at the extreme price and update, it has also exacerbated fast fashion, shein, undoubtedly forced itself to a spiral rising ring.
However, as long as the capitalist countries are still sleepy in the influence of the epidemic, SHEIN’s “Live Lei Feng” role has the value. From the cheap women’s wear to one-stop, all-category shopping platform, such a set of routines, Taobao has been verified.
In fact, plagiarism allegations are not large for Shein’s killing, and facing potential threats such as original niche design brands, the lack of design gene’s Shein also has a strategy: Single open up “Shein X” channel, attracting hundreds of original original The designer settled in operation and won it down.
SHEIN’s success reminded that in a global scale, women’s money is still best earning.
 “Cross-border e-commerce brand SHEIN: digital model, like broken bamboo” Huachuang securities
 “Exclusive | SHEIN Day sales exceeds 70 million US dollars, the goal is sold in 2 years, super zara” late LatePost
 “Dry zara: China Top 100 billion US dollar cross-border e-commerce SHEIN’s supply chain mystery” interface news
 “SHEIN Mobile General Manager 旸 旸: What is the company’s money? The first is mobile phone, net red and model “Haish cross-border
 “When you take a little, you will make a little bit.
 Chinese E-Commerce Site Shein Hit with trademark Disputes FT
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