When it comes to fashion, Gen Z have become Gen S. And the S stands for Shein.
Founded in Nanjing, China, by entrepreneur Chris Xu, Shein, now based in Singapore, is the world's largest fashion retailer. (Source: GlobalData)
And, according to The Telegraph, the company has ‘overtaken Boohoo for the first time in Britain’s retail market, as the Chinese fast-fashion giant recorded revenues of £1.55bn over the past year.’ They are also closing in on Asos.
Less a fast-fashion platform, more a hyper-fast fashion phenomenon, its innovative e-commerce model has driven relentless global growth, both in sales and social media engagement. Shein now receives obsessional attention from younger consumers.
So, how have they pulled it off?
Data strategy specialists, ECDB, may have the answer: ‘What is making Shein stand out from all the other fashion stores is its usage of technology to gauge consumer interest in real time. As a result, the company speeds up production processes and provides instant feedback to manufacturing facilities on which items are generating the most consumer response.’
Shein calls it a “large-scale-automated test and re-order” (LATR) model.
Put simply, they create vast amounts of new products in very small batches. Then use big data to select the winners and losers. The numbers are astonishing. According to the magazine Rest of the World, ‘between 2,000 and 10,000 new looks are uploaded to the platform every day.’
The more clicks, likes, comments and engagement a new look gets across the likes of Instagram and TikTok the more chance it has of surviving.
Then, in a Darwinian digital selection process, the losers are culled; the winners manufactured in vast quantities.
Rest of the World again, ‘“Fast fashion is well-known for its very frequent replenishment of products,” said Sheng Lu, a professor at the University of Delaware studying the global textile and apparel industry. “But Shein is totally different.” From January to October of 2021, Lu’s research found the company offered more than 20 times as many new items as Zara and H&M.’
Like most fashion businesses, Shein puts influencers at the forefront of its marketing strategy. But, instead of partnering with big names, like Kim Kardashian, the company uses armies of smaller ones, called, in industry jargon, ‘nano’ or ‘micro’ influencers.
ECDB again, the ‘relatability of nano-to mid-tier influencers, encourages audiences to emulate them more easily. It is also more affordable.’
Shein’s latest look? Coming soon, to a Gen S nano-influencer near you.