From challengers to leaders, Chinese brands break out abroad!
On January 15, the latest “Mobile Market Report 2024” released by market analysis agency data.ai showed that fashion and lifestyle online retailer SHEIN once again won the championship. champion in global shopping APP downloads in 2023. This is also the second consecutive year that SHEIN topped the list of shopping app downloads after 2022 and continues to grow significantly in terms of active users and usage penetration level.
In the past, when mentioning international fashion brands, people immediately thought of Zara, H&M, Nike, Adidas, but in recent years, along with the wave of going abroad, Chinese brands have shown their achievements. Positive move worldwide.
Fashion clothing brands from China have become world-class brands that foreigners often talk about. Among brands going abroad, SHEIN has broken the rules of the game in the Western fashion industry with the new idea of going abroad, transforming itself from a "challenger" to a "leader" in the industry. fashion that the West once mentioned.
SHEIN was founded in 2012. Since its inception, this brand has been deeply involved in the women's fashion clothing segment, with business activities mainly targeting markets such as Europe, the United States, the Middle East, and Southeast Asia. In 2015, SHEIN changed the method of sourcing goods from the market, established an apparel product team, recruited designers and a Merchant purchasing team, and established a supply chain center in Guangdong. , which has a closed finished garment production supply chain and gives the label more advantages in penetrating garment factories in Southern China - this brings Huge support for SHEIN. At the same time, SHEIN also supports the domestic supply chain to accelerate digitalization and standardization.
As the year 2019 approaches, taking advantage of the wave of booming Internet economy abroad, SHEIN has finally ushered in its glorious moment. With many new designs and cheaper prices, SHEIN quickly stood out from the ranks of cross-border e-commerce and gained popularity worldwide, becoming a Chinese clothing brand on par with giants like H&M and ZARA.
According to media reports, SHEIN's annual revenue doubled from 4.5 billion USD last year to nearly 10 billion USD in 2020 and reached 29 billion USD in revenue in 2022. According to the latest report from Bloomberg, SHEIN has been profitable for four consecutive years, and this year's net profit is expected to reach $2.5 billion, a 17-fold increase from $137 million in 2019. In May 2023 , SHEIN has deepened its platform strategy and, on the basis of strengthening its own brand advantage, created a dual-engine development model of “own brand + platform” and set a target of achieving 58% revenue .5 billion USD by 2025 ( (annual target is about 427 billion RMB).
In October last year, ABG Brands Group (Authentic Brands Group), a global brand development, marketing and entertainment platform, announced a long-term partnership agreement with SHEIN for the Forever 21 brand. In this strategic partnership, SHEIN has acquired about 1/3 of the shares of Forever 21's parent company, SPARC Group, and SPARC Group will also own a small amount of shares in SHEIN. ABG founder, president and CEO Jamie Salter said his company has more than 50 brands and could enter furniture, home furnishing and other categories with SHEIN in the future for broader cooperation;
In the same month, British fashion retail group Frasers Group Frasers announced the sale of its popular brand Missguided to global fashion and lifestyle online retailer SHEIN. SHEIN will fully acquire the Missguided brand and all of its intellectual property rights; in November last year, Australian design brand Alice McCall reached a collaboration agreement with SHEIN, from the $15 tube top to the $120 dress. Alice McCall products will provide SHEIN platform consumers with products that are more elegant than simply designed fashion products…
As an innovative model leading the fashion development trend, the adoption of flexible on-demand manufacturing for more brands including Missguided and Forever 21 can promote the development of the fashion industry at scale bigger.
Famous American consulting company Boston pointed out in the report "Flexible Supply Chain: A New Source of Competitive Advantage in the Fashion Industry" that the on-demand production flexible supply chain model represented by SHEIN can help companies quickly respond to market changes and thereby reduce inventory costs, improve capital efficiency, increase revenue or share revenue with customers through pricing. more reasonable products. The general trend of businesses is to build a flexible supply chain model to survive and develop.
_ The above article was translated and translated by the Alran leather team from the Global Times.