Founded in 2018 by Chris Xu, Shein is a Chinese retailer specializing in online fashion for adults and children. Initially specializing in wedding dress design, the company-turned-unicorn has adapted and diversified its offering, becoming one of the world's largest online shopping players.

Dubbed the "TikTok of e-commerce" by internet analyst Matthew Brennan, Shein has become the most downloaded shopping app in the U.S. and one of the world's best-known low-cost clothing retailers. Focus on the unicorn that has dethroned the giant Amazon!

What is Shein?

Shein is an online platform that offers clothing and accessories for women, men and children. Primarily known for its fashionable products at affordable prices, the shopping app has quickly become a serious competitor to the likes of Zalando, Amazon and Asos. 100% Pure PlayerThe brand is now present all over the world, particularly in the United States, its main market.

Pronounced "She In", Shein is the fastest-growing Chinese start-up in the world: the company is expected to generate $10 billion in revenues by 2020, and has seen a 100% increase in revenues over the past eight years.

years.

In spite of its origins, the online clothing brand rejects the local market in favor of selling abroad. As a result the application can be downloaded in over 220 countries.

Shein, leader in ultra fast fashion

We know about fast fashionbut recently, the world has seen the emergence of "ultra fast fashion". led by unicorn Shein. The principle is simple:

• sales are exclusively online 
• order delivery times are faster than those of fast fashion 
• lower prices 
• new collections are no longer created monthly, but weekly or even daily 
• stocks are limited, prompting consumers to make frantic purchases of clothes 
• promotions and discounts on a regular basis.

The Shein brand, leader in ultra fast fashion, has revolutionized the market by developing a real-time retail model. The aim? Reduce the time between garment design and production. By way of example, the overall time has been reduced from two to three weeks to just three days. This is one of the reasons why the online clothing retailer has succeeded in establishing itself in one of the world's most competitive ready-to-wear markets.

Who are Shein's main users?

Shein is an extremely extremely popular clothing brand worldwideparticularly with Generation Z - people born between 1997 and 2010.

Known for its unbeatable prices and gamification strategy (Shein rewards users for taking part in "outfit contests"), the online shopping company turned unicorn is now the market leader.

Shein, a world-famous unicorn

As mentioned above, Shein has achieved a worldwide breakthrough. In the United States, the unicorn has even succeeded in becoming the most downloaded shopping app behind Amazon.shopping app behind Amazon in 2021.

In France, according to Data Al 2020-21 data, Shein is placed in 6ᵉ position ahead of the Facebook app. During the second quarter of 2021, the app was the 15ᵉ fashion player in terms of number of transactions, moving it up 16 places on the previous quarter. 

Global performance is equally impressive. In the Brandz2021 report by Google and Kantar, Shein was even ranked in the top 11 in the annual 2021 Chinese Global Brands Index! 

A Chinese unicorn backed by numerous investors

To become what it is today, the Chinese online retailer has been able to count on numerous investors who have always supported the company's project. With a valuation of $100 billion and a never-ending series of fund-raising events, the company is comfortably established as the market leader in apparel retailing.

Investments

The development of the online shopping brand has been made possible thanks to the intervention and support of a large number of investors and investment funds. These include: 

• Sequoia Capitale China 
• Tiger global management 
• Greenwoods Asset Management
• IDG Capital 
• Atlantic General 
• Jafco Asia

With a total financing of nearly $1.5 billionthe Chinese fashion giant Shein recently achieved a record valuation of $100 billion, reported the Wall Street Journal.

A few weeks before its last fundraising campaign in April 2022, Bloomberg had already revealed Shein's intention to raise $1 billion in order to increase its valuation to $100 billion. It's now a done deal! The unicorn has been able to count on 3 investors to achieve this: 

• General Atlantic 
• Tiger global management
• Sequoia Capital China

Now, Shein is officially worth over $100 billionexceeding the combined valuations of Spain's Inditex ($68 billion) and Sweden's H&M ($20 billion).

Initial public offering

In May 2022, the Chinese fashion giant stated that it had no plans to go public. 

However, according to two people close to the matter, contacted by Reuters, the Chinese brand is relaunching its plans to go public in New York. Shein's founder is reportedly considering a change of nationality in order to circumvent China's restrictive rules on offshore IPOs.

The brand had already taken steps towards an IPO two years ago.. The project was cancelled due to the unpredictability of the markets : political and economic tensions were tense at the time.

Recently, an official spokesperson for Shein stated that the company had no intention of going public. Nevertheless, according to the same sources, Shein has hired Bank of America, Goldman Sachs and JP Morgan to work on the IPO... to be continued.

Polemics

The textile industry is the second most polluting in the world after the oil industry. Fast fashion and ultra-fast fashion (in Shein's case) are not exempt from castigation by environmentalists.

In addition to the pollution produced by Shein's massive ready-to-wear design, recent chemical analyses - carried out in November 2022 by the NGO Greenpeace - have revealed dangerous products in the brand's clothing. According to Audrey Milley, a historian specializing in fast fashion, children's items contain levels of lead 20 times higher than the authorized limit!

In addition to the ecological aspect, many point to the brand's lack of ethics and the working conditions of its employees. Workers toil between 12 and 13 days a day for derisory wages and no social security cover.

However, Shein is prepared to remedy its shortcomings by investing in its factories over the next few years. Over the next three to four years, "hundreds of factories" are expected to review and improve working conditions. Spending on responsible sourcing is also set to double.

What are our ambitions for the future?

Shein announced plans to to invest $15 million over the next 3 to 4 years to modernize to modernize the plants in its supply chain.

The investment is also part of a program set up by the brand called SCEP or Community empowerment Programme. The program is based around a hundred hundred projects by 2023, and 300 projects within four years.

Shein also intends to double the amount invested in its SRS (Shein Responsible Sourcing) program, dedicating $4 million a year to it. The money will be used to "increase the frequency of spot and unannounced checks and to invest more in training suppliers on how to comply with its code of conduct".

Shein looks set for further growth and momentum. If it achieves its targets, the unicorn could become the world's third-largest startup in the world in terms of valuationbehind the parent company of TikTok ByteDance and SpaceX, despite a drop in its value to $65 billion.

Shein: key information 

By 2022, Shein will have 10,000 employees. 

Sales were expected to reach 10 billion euros by 2021.

No immediate IPO.

Shein focuses on delivering value to customers, offering quality products at affordable prices.

The brand's main objective is to serve as a leader in the fashion industry and promote fashion in the modern age. Shein has recently opened virtual stores in Madrid, Melbourne, Las Vegas, Milan and Barcelona.

The online apparel shopping application has already come a long way, but there's still a long way to go if the brand is to establish itself in other Western countries and in the Middle East. To achieve this, it is already planning to develop its CSR policy and the working conditions of its employees, two extremely sensitive subjects that must not be neglected.

Important. Already established on the international scene (220 countries), the company continues to grow and gain in popularity. Unfamiliar to the European public just a few years ago, the brand has (and continues to) capitalize on trends to win over an ever-growing customer base. 

However, the company's growing environmental awareness, the application's real-time data collection principle and the working conditions of its employees could prove detrimental to the company in years to come. 

"Shine In, Shine Out" and "everyone can enjoy the beauty of the fashion" are the two core values of the brand.