The Chinese ecommerce brand Shein has grown to become one of the most successful global brands. According to a recent survey, the site had more than 30 million unique visitors in January alone, compared to the 15 million that visit the most popular US fashion brands. Although the brand is headquartered in Nanjing, China, the majority of its sales are in international markets. Among these are the Middle East, Europe and the United States.
Shein’s streamlined supply chain, in-app analytics and real-time fashion all work together to help its customers make the right choice. This, in turn, helps the company to make money. To this end, the company uses a sophisticated software program to manage hundreds of independent factories across the globe.
Shein isn’t the only ecommerce retailer to use social media as a marketing tool. TikTok, for example, is a site that produces videos that show users taking short try-on hauls. When these videos are uploaded, they generate a buzz before the actual products are launched.
Shein has also developed a huge presence on YouTube and TikTok, and uses a lot of ads to promote its products. However, the company’s main product is a shopping app, not a video game. In addition to the mobile app, the website has a large selection of women’s, men’s and children’s clothes. There are even a few accessories and shoes to choose from. It offers free delivery for orders of more than 50 USD.
While Shein’s business model has made the company very successful, it has also been heavily criticized for its ethics and corporate social responsibility. One particular criticism concerns the company’s lack of transparency in its supply chain. For instance, consumers in China don’t know the origins of the products they purchase from the site. Another concern is the fact that the company doesn’t pay its workers a living wage, as many fast fashion companies do.
A documentary about the company titled “Inside the Shein Machine” has shown gruesome conditions in factories. Workers spend up to 75 hours a week working on the company’s clothing. Because the items are so cheap, the cost to produce them is minimal. Some of the clothing is made from synthetic fabrics that don’t hold up very well in the wash.
Another marketing strategy is the use of dark patterns. Dark patterns on the website, for example, are designed to trick users into performing certain actions. Other features of the site include an in-app style gallery, free consultations and an online style source library. These are all good ideas, but the company hasn’t done a great job of developing a consistent and coherent brand identity.
Shein’s success is attributed to its ability to exploit user psychology. It taps into dopamine in order to get users to purchase products. In addition, the company uses a number of other marketing strategies to keep customers happy, including a number of different discounts.
The company is also very adept at getting users to sign up to their emails. As a result, their customer base has been growing steadily. They have over 43.7 million registered users on their mobile app. And according to a recent WeChat post, their sales for the year reached 20 billion yuan. Despite this, they haven’t released any financial details.
