Brands = 'zara','shein','tiktok'
Geo = 'US'
Startdate = '2010-01-01'
Splitdate = '2020-03-01'
Online fashion retailer SHEIN’s emergence as a prodigious force in the fashion world, was only possible through a social media presence fortified by user-generated content.
While SHEIN may not have strayed too far from its fast-fashion peers like Boohoo, ASOS, Fashion Nova, Revolve, or Romwe, the brand carved out a unique niche for itself by orchestrating a virtual rave with TikTokkers that has left its rivals standing on the sidelines. With every twirl of the virtual dance, both SHEIN and TikTok have flourished, powered by a legion of screen-struck adolescents. The pandemic played a crucial role in this evolution, with young trendsetters confined by lockdown and plagued with boredom, transforming SHEIN into the fashionable juggernaut it is today.
Now, SHEIN has engaged in a fierce competition against Temu to attract shoppers' attention, with the legal battle of these two Chinese e-com majors also unfolding in a US court. This legal skirmish brings to the fore the challenges faced by e-retailers with manufacturing partners and suppliers in China as they maneuver around US intellectual property protections. Despite these hurdles, SHEIN remains a dominant player in the clothing industry, thanks to its ability to produce and customize products, catering to individual and regional preferences. The brand's business model includes trend-focused design, low-cost sourcing, vertical integration, online-only sales, targeted marketing, and efficient logistics. Similar to TikTok, SHEIN employs algorithms to deliver personalized content to users in real-time, which further strengthens its competitive edge.
Fast fashion has tapped into the essence of the absurd, the pièce de résistance of TikTok's originality. The richest creative vein for SHEIN's secret sauce lies in its social media presence, which has become synonymous with a plethora of consumer’s review videos or "clothing hauls". Among the top most-viewed SHEIN try-on shows on YouTube, few are bankrolled by the brand itself, illustrating the power of organic digital magic1.
#sheinhaul
The hashtag has become a social media sensation for fashion-conscious individuals, mainly slender, iPhone-ready, affluent, and predominantly Caucasian girls who spend hundreds of dollars on their fashion hauls. This is a digital consumerist abyss so deep, that sometimes hauls have to be split into six or more parts.
However, the trend of overconsumption on social media platforms, particularly in the fashion sphere, is a significant issue. TikTok's sartorial challenges incite a surge in clothing consumption among users, consequently amplifying ecological concerns and perpetuating exploitative labor conditions. The problem is exacerbated by rich individuals who buy large quantities of clothes and discard them quickly for social media clout.
American teenagers' expenditure is soaring. This increase is primarily driven by well-off female teens, who are allocating a third of their budget towards clothing. Notably, women tend to shop online more than men. As the fashion spend inches closer to pre-pandemic levels, fast-fashion giant SHEIN continues to dominate among Gen Z consumers, earning the title of the second most favored e-commerce platform.
From Fast to Real-Time Fashion
The fashion industry has experienced a rapid evolution from fast fashion to real-time fashion. ZARA was among the pioneers of fast fashion, introducing hundreds of new items per week two decades ago. ASOS raised the bar by adding as many as 7,000 items two years ago. However, SHEIN has recently set a new benchmark for real-time fashion by recently unveiling a staggering 15,000 new items in a couple of days. This trend highlights the increasing demand for fresh and exciting styles, with companies vying to keep up with consumers' insatiable and ongoing appetite for new designs.
To some, the non-stop stream of emotions and personal moments that flood social media platforms can be overwhelming. However, there is a silver lining to this accessible chaos - particularly on the captivating mayhem of TikTok - which offers refuge to many, especially those looking to connect with the current Zeitgeist. In a world where confusion abounds, perhaps there is some equality and fairness to be found in the shared experience of uncertainty.
The graphic representation of the rise of online popularity of SHEIN in comparison to TikTok and Zara, leaves us with two important questions:
Is this SHEIN-model the FUTURE of online shopping? Its valuation at $100 billion following a recent funding round, more than H&M and Zara combined, speaks for itself.
Is TikTok’s capability as a vehicle for new brands to eclipse traditional businesses in a very short time-span what makes it not just privacy-related threat, but an economic one?
Chris Xu, SHEIN´s founder, is himself an SEO marketing specialist.
Absolutely recommend this:
https://open.substack.com/pub/notboring/p/shein-the-tiktok-of-ecommerce?r=1w5uv7&utm_campaign=post&utm_medium=web