Shein, originally founded in China, is stirring up controversy as it emerges as a formidable global powerhouse.
According to analysts, numerous Western competitors are risking their own downfall by disregarding the potential of this app.
Lindsay Firko, a regular shopper at big-box retailers like Target, has undergone a significant change in her shopping habits since discovering the Shein app, Barron’s reports.
Previously spending hours browsing the aisles of her local Pittsburgh stores, Firko now finds herself immersed in the world of online shopping through Shein.
The app offers a vast array of products at remarkably low prices, ranging from trendy clothing to household goods and beauty products. Firko's virtual shopping cart frequently exceeds $250, even though individual items are priced as low as $3 or $6.
Shein's global dominance and unique supply chain model
Despite its relative obscurity to many, Shein has emerged as a major player in the e-commerce industry, capturing the attention of Gen Z shoppers worldwide.
Founded in China and later relocating its headquarters to Singapore, Shein became the most downloaded shopping app globally last year, second only to Amazon's app in the US.
The company's success can be attributed to its innovative supply chain model, enabling the production of incredibly affordable clothing and accessories.
Shein's popularity surged during the pandemic, capitalising on the increasing trend of online shopping.
With the support of renowned venture capital firms like Tiger Global and Sequoia Capital China, Shein boasts an astonishing valuation of approximately $66bn, surpassing well-established fast-fashion brands such as H&M and Gap.
A Looming challenge for US retailers
The soaring popularity of Shein poses a significant threat to traditional US retailers. Lindsay Firko's sentiment, echoed by an increasing number of shoppers, reflects a shift away from brick-and-mortar stores in favour of the convenience and affordability offered by online platforms.
With its extensive product range, Shein entices customers with unbeatable prices on fashionable clothing items and various other goods. Retail giants like Walmart and Target are beginning to feel the impact, as shoppers like Firko find themselves spending less time in physical stores.
As Shein continues to expand its reach and dominate the global e-commerce landscape, US retailers must find innovative ways to adapt and compete in the evolving digital marketplace.
