Shein is an online business born in 2008 in China. In 2019, the group recorded a turnover of 2.38 billion euros. To date, this is a company that has remained very discreet. It sells mainly female clothing and accessories.
The site quickly became very popular, especially in China, but is also starting to gain notoriety elsewhere. When we talk about a discreet site, there is indeed no phone number, no e-mail, or any means of contact listed that could make it possible to reach the founder(s), who are also unknown there is, however, a customer service line, that remains available to consumers.
The site is based on viral marketing to sell its products. Advertising is indeed omnipresent.
The group is present in more than 200 countries and regions around the world.
Here is Shein's SWOT Analysis.
Strengths
The prices offered are undoubtedly the site's greatest strength, especially with the rise of competition online.
E-commerce has been one of the biggest buying trends in recent years, especially for younger consumers.
The group also has its own mobile application, which is a big advantage since 80% of customers go directly through the application to buy on the Internet.
It should also be noted that the clothing offered goes up to 4XL in terms of sizes, which is quite rare. This makes it possible to reach a larger target and to interest a fortiori more consumers. Shein also offers a large number of exceptional operations, particularly in partnership with social networks. Consumers can, therefore, benefit from even lower prices for a generally relatively short period of time, allowing the group to boost its sales even further.
Weaknesses
The group remains, as we said in the introduction, quite discreet as to the origin of its creation. In a world where consumers like to know everything, this can be a weakness, especially since consumers like to be constantly reassured.
As with all sites that only sell online, it is important to pay attention to the items ordered, 90% of consumers read reviews first.
Opportunities
Shein is a group driven by advertising and social networks. Virtual ambassadors and influencers are the main marketing forces of the group, which is very fashionable and thus conveys a particularly dynamic image of the company. With over 15 million subscribers on the majority of networks, Shein is gradually expanding its empire around the world.
Threats
Competition is important, especially online. Thus, the group has to face giants like Amazon, which sell clothes, but also hundreds of shops that offer clothes at low prices. It is interesting to look at Amazon's SWOT analysis.
In the physical segment, consumers also have a wide choice of boutiques such as Zara and Uniqlo, chains that also allow them to try on clothes before buying them. The threat of new entrants is also perceived to be very strong, given that dozens of shops of this kind are created on the Internet every year.
Sources: 42info, SheIn