The annual sales of nearly 70 billion. How can this man sell women’s clothing to more than 150 countries and regions around the world?

Source: Feng Lunfeng Ma Niu (ID: fengluntalk) Author: Mao Hongtao

Low prices are always addictive.

15 “China’s Mysterious Ten billion US dollars”

For Chinese users, using Shein (Chinese: Higong) is a threshold. First of all, you have to not be on the mainland.

Shopping on Shein’s APP or website, even if the location is positioned in China, the language settings can only choose English, Spanish or Portuguese. The place of receiving the goods can be found in Hong Kong, Macau or Taiwan.

Is this a foreign company? No, shein is just a Chinese fast fashion company that defines itself accurately.

SHEIN was established in 2012 and was widespread attention in 2020 for a research report on Chinese unicorn enterprises. According to Bloomberg, this year, its sales have exceeded 10 billion US dollars (about RMB 68.9 billion), which is also this year. Shein completed the E round of financing with a valuation of 15 billion US dollars (about RMB 103.3 billion To.

In recent years, the difficulties of fast fashion companies are obvious to all. The sales volume fell, the giant ZARA and H & M closed the physical stores in large quantities. The shadows of no environmental protection, design plagiarism, and poor product quality were lingering, but the development of Shein did not slow down. In June 2021, Bloomberg said that SHEIN’s valuation had reached 30 billion US dollars (about 193.5 billion yuan). In the same month, “Forbes” reported that analysts have valued SHEIN more than 45 billion US dollars (about RMB 2902 2902 100 million yuan).

Eight years were established, and the valuation of tens of billions of dollars was made overnight. When it was difficult for peers, it rose at least doubled within a year. SHEIN has risen and its momentum is rising and the momentum is fierce. Some people call it “Chinese version of ZARA”. And because the company’s public information is too little, SHEIN has become the “most mysterious tens of billions of dollars in China” among many people.

It is said that it is “Chinese version of ZARA”, and I am afraid that it only has a popular science role for consumers who do not understand SHEIN.


In fact, it is difficult to find a trace of Chinese atmosphere from opening the SHEIN APP or website page. Most of the models are European and American looks, full of figures, exquisite makeup, and strong inspirations, which are also very different from domestic popular composition. Not only does the language do not have Chinese options, but also the place where the receiving location cannot be found in mainland China. Even the details page, it is not clear that this is a Chinese company. Delivery and regional delivery.

Shein web page shopping page

It is said that it is “China’s most mysterious tens of billions of dollars”, on the one hand because of SHEIN’s growth process, almost no domestic and foreign media reports. When the media is really concerned about it, it has become a fast fashion company that cannot be underestimated; on the other hand, on the other hand, It was because the founder was quite low -key, refused to be interviewed, and he was unwilling to show publicly. He was not like a businessman. He exposed a little information under the excavation of multiple media.

The founder of Shein is Xu Yangtian, and some foreign media believe that this is a Chinese entrepreneur of America, but after the domestic media querying the industrial and commercial information based on related companies, he was born in Zibo, Shandong. He was born in 1984. Although shein is mainly for cross -border women’s clothing business, Xu Yangtian himself and fashion are not stained at all. He started a SEO (search engine optimization) to help customers use rules and improve the target website on search engines (such as Baidu, Google)) The ranking is a bit straightforward to deal with data.

How can a Shandong man sell women’s clothing to more than 150 countries and regions around the world? The way of SHEIN may be the optimal solution he found for the fast fashion industry in the Internet era.

02 Speed ​​Game and Data Games

In many people’s eyes, fast and fashionable “fast” played speed games, but for Shein, Zara “fast” after Zara, playing data games.

ZARA is a fast -fashion inventor. In the 1980s, the process of reshaping the traditional clothing industry was reshaped, and the design, manufacturing and distribution were disrupted. The popular elements were absorbed from the fashion conference. At the beginning, each style was only small in batches. Until the selection of consumers, it was decided to expand the output based on the sales of each store.

ZARA’s sprinkler is fast. It is fast to establish a clothing factory around the city. From production to entering the store, it only takes 14 days to be one -sixth of the traditional clothing industry. Thanks to the “reference” of the fashion show, ZARA can also guarantee that the design is also fast, so in each quarter, ZARA can be more new than traditional clothing brands several times, quickly repay, plus the strict supply chain of the supply chain. Control, the cost of ZARA can be pressed into the traditional clothing brand that is unimaginable.

“Low cost, small batch, fast repayment, more new”, the ZARA model defines the fast fashion industry, store collection and sales feedback is its moat — the more stores, the more sales data collected, the latter clothes and the latter -made clothes The more accurate the design, the better the business, and the store can expand again. After ZARA’s success, Sweden H & M, the United States Forever 21, China UR, etc. also followed this way.

But shein walked and took a different approach.

In domestic media reports, Xu Yangtian initially aimed at fast fashion, but cross -border e -commerce. Before the formal establishment of Shein, Xu Yangtian and his partner sold wedding dresses to overseas. At that time, singleism was not popular. Wedding dress was a must -have for weddings. You can sell a good price to abroad. When all cross -border e -commerce rushed into the category of wedding dresses, Xu Yangtian chose to withdraw and turned to another similar industry: fast fashion.

Like wedding dresses, the main consumer groups of fast fashion are also women. Wedding dresses can only satisfy their romantic feelings, but the low -priced clothing produced by fast fashion has continuously satisfied their beauty.

It is worth noting that at that time, the smartphone had swept the mobile phone market, a social software such as Facebook, Twitte, and Instagram, and mobile phones with photographic functions at the same time, which was a magnifying glass -infinitely enlarged beauty heart, and at the same time allowed People’s spending power gathers in the fast fashion industry.

SheinSide, the predecessor of Shein in 2012. Sheinside did not advertise everywhere on the streets like most clothing brands, and did not have a huge sum of money to sign spokespersons. Instead, they found many American Internet celebrities to let them wear Sheinside’s clothes to take pictures and indicate the brand.

It was the period when Internet celebrities had the highest cost -effectiveness. The price was cheap, but the source of the attracted customers was very real. The emerging brand such as Sheinside used the most money -saving way to cut into the fast fashion industry of the giants.

The post of actively sunburn on ins

In 2015, sheinside was renamed Shein.

The biggest difference between Shein’s gameplay and ZARA is online or offline. ZARA is a European company that has been established for decades. Although it has shaped the fast fashion industry, it is still the set of offline stores. All the data stems from their own guests. However, shein’s genes originated from cross -border e -commerce. First of all, e -commerce has fast fashion. Without stores as the source of sales data, shein needs to take the initiative to “catch” the product data of large and small clothing sales websites. Sales, trends and price demand.

ZARA deserves the secret of “low cost, small batch, fast repayment, more new”. Shein is based on Guangzhou and can “change” at every point.

Panyu District, Central and South China, one of the starting points of the “Maritime Silk Road”. It has the birthplace of “Guangxiu” since ancient times. After the reform and opening up, a large number of skilled workers have gathered here. There are hundreds of clothing factories. SHEIN is the support of these small and medium-sized clothing factories, pushing forward the ZARA model forward to achieve “cheaper” -the price range of ZARA is $ 7.9-250, but SHEIN can achieve $ 1.11-160.

In addition, SHEIN is more important than ZARA. It is a picture. For online shopping, there is no trial, the beauty of the picture directly determines the audience’s first feeling of the product. SHEIN has very high demand for photographers, and there have been reports that the application-admission ratio is less than 1%. In these pictures, the enthusiastic, lively, and colorful Ins style is the most common. The plump and even some obese models must also occupy a certain proportion. After all, the United States is the largest market for Shein, and the obesity rate of adults in this country is Already as high as 42.4%.

Large size models and up to 4XL clothing models are not very popular in the Chinese market


Whether it is online celebrity marketing, supply chain running or picture shooting, the support points given by SHEIN are data -which red fans are more, good with goods, and data; which one is popular on the entire network, there is data; what pictures are more pictures; what pictures are more pictures; What market is suitable for data.

Without physical stores, SHEIN has done a more extreme cost and speed than ZARA. At the same time, with data support, shein, like ZARA, has a moat, and even this river is wider and deeper. After all, ZARA still relies on store sales feedback very much , But shein relies on the entire network data.

As a result, when ZARA and H & M were increased by offline costs and the epidemic affected by a large number of stores, shein’s performance was rising for many years. Is SHEIN all solved the old problem in the fast fashion industry? During its accurate customer acquisition and rapid development, the spotlight did not hit it. When it became the focus, the high valuation became its filter.


So Zara, shein is another new story.

03 Disputes and hope of cross -border e -commerce

On February 8 this year, the Guangzhou Municipal Development and Reform Commission announced on the official website to announce the project plan of the key construction of Guangzhou in 2022. In the column of “Industry Construction-Strategic Emerging Industry and Advanced Manufacturing”, the “Higin Bay Area Supply Chain Headquarters Project” was listed, and Hicin was the Chinese name of Shein. According to the Guangzhou Daily, the project has begun to work in the early stage. It is located in the center town of Zengcheng District, Guangzhou. The total supply is about 3,000 acres and the total construction area is about 3.3 million square meters.

Due to the difference in Chinese and English names, the news is not eye -catching. But two weeks later, the news made SHEIN controversial. Reuters reported that a source said that SHEIN founder Xu Yangtian may have obtained permanent residents in Singapore. Shein may have changed the company’s holding subject to Singapore.

Obtaining the “permanent residence” and then “citizen” and change the company’s main body. This series of operations reminds people of Zhang Yong, Shu Ping couple, and Li Xiting, founder of Haidilao. In September 2018, Haidilao knocked down on the Hong Kong Stock Exchange. The media found in the prospectus disclosed that Zhang Yong and Shu Ping were already in Singapore. It was also this year that Mai Rui Medical delisted from U.S. stocks and returned to the listing of A shares. Li Xiting was also confirmed to be Singaporean. With the promotion of the capital market, Zhang Yong and Li Xiting became the richest man in Singapore.

Therefore, SHEIN’s series of operations are also regarded as preparations before listing in the United States. Although shein has denied the founder’s change of nationality, on the LinkedIn page, SHEIN’s headquarters has changed to Singapore, and the number of recruitment issued by Shein is significantly more in the number of resident employees than other regions.

An indisputable fact is that more and more rich people are pouring into Singapore with the corporate headquarters.

According to the statistics of Bloomberg Fortune, since the end of 2019, the number of single -family offices in Singapore has doubled to about 400. The family office is considered an important tool for the rich man to take care of the family property. It is not only convenient to control listed companies, but also invests in a single entity. In Singapore’s “Global Commercial Investor Program” (GIP), the number of family offices manages assets is also one of the conditions for measuring whether it can pass the “permanent residence” and then “citizenship”.

A Bloomberg News commented that under the circumstances where the trade friction between China and the United States and the world economic situation is unclear, by moving the headquarters to a country like Singapore, it is a sheltering method to avoid involving political disputes in political disputes. Perhaps this is what the “smart money” behind SHEIN’s five rounds of financing wants.

GIP is headed by the Singapore Economic Development Bureau, and the official website has specially set up a Chinese page

Since 2020, SHEIN has been exposed many times that they are seeking IPOs in the United States. Reuters, Bloomberg and other well -known financial media have even been dug out. It is responsible for its IPO work including JP Morgan Chase, Bank of America and Goldman Sachs. The foreseeable unicorn monetization feast is about to move. But “making big cake-listing-cash” does not seem to be SHEIN as a “cross-border e-commerce+fast fashion” enterprise.

Looking through the Shein’s shopping page, in addition to clothing categories, the types of pet supplies, home supplies, and beauty products are continuously expanding. One of the simple filtrations priced at 1.11 US dollars (about RMB 7.14) scored 4.87 points (5 points at a full score of 5 points. ) Praise and more than 10,000 messages. In the Google Play-APPS comment area, more than 3.148 million users scored SHEIN, with a score of 4.7. The main source of purchase of home supplies.

Extremely low -cost, ultra -high user stickiness, and high exposure in social media. According to these characteristics, some people have boldly speculated that SEHIN can use China’s supply chain to make a “overseas version Pinduoduo”. After all, no matter which country in, low prices are always addictive.

Regardless of the future, the rise of Shein is an indisputable fact. This company that is rooted in China’s supply chain and advocates “everyone to enjoy fashion” may reveal the secrets of entrepreneurial entrepreneurship in the Internet era: all behaviors can be abstracted into data, and the key to success is the true trend of reaching these data.


[1] Xue Yaping: “Xu Yangtian touched Zhang Yong” uphill “, the public account” letters list “

[2] Liang Yaodan: “SHEIN: 300 billion estimates” Black Horse “Value and Real”, Netease Qingliu Studio

[3] Li Shiyun: “Unveiling SHEIN: The Rise of China’s Most Mysterious Ten billion US dollars”, the public account “Late LatePost”

[4] Guangzhou Daily: “Guangzhou City 2022 Key Projects Plan on February 8th Annual Planning Investment 364 billion yuan”

[5] Scott Murdoch, Chen Lin: China’s Shein Shelves u.S IPO Plan Again Due to Uncertain Markets -Sources, Reuters

[6] Louise Matsakis, Meaghan Tobin, Wency Chen: How Shein Beat Amazon at ITS Own Game -And Reinvented Fashion, The Guardian

[7] Mary Hanbury: How China’s Most Mysterious Billion-Dollar Company, Shein, Won Over US Teens and Became Tiktok’s Most-Hyped Fashion Brand, Insider

[8] Mark faithfull: shein: is China ’s mysterious $ 15 billion fast fast fairer Ready for stores?, Forbes

[The author of this article Feng Lunfeng Ma Niu, the entrepreneur authorized. If you need to reprint, please contact the WeChat public account (ID: fengluntalk) to authorize, and the reprint must be investigated without authorization. ]