Shein: the New Competitive Force of Shope Lazada or Tiktok

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According to Bloomberg, at one point Shein reached a valuation of $100 billion and is planning to reach a gross merchandise value ( GMV ) of $20 billion this year.



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Founded in 2008 in China, Shein operates with a domestic production model and prioritizes overseas sales, mainly through the online environment.

Presence mainly on social networks such as TikTok, YouTube, Instagram , online fashion business empire Shein brings in annual sales of over 11 billion USD, reaching customers in 150 countries.

However, Shein has only recently gained popularity in the West. In 2021, Shein Denmark Phone Number List clothing and fashion products have become staples in Gen Z's wardrobes from the United States to Dubai.



According to Bloomberg, at one point Shein reached a valuation of $100 billion and is planning to reach a Gross Merchandise Value of $20 billion this year, narrowing the gap with other brands. as big as H&M and Zara.

Last year, Shein announced key strategies , opening offline stores in Southeast Asia, such as Bangkok, Manila and Singapore.

The company identifies Asia as an important market for growth, with Singapore, the Philippines, Thailand and Malaysia, said Leonard Lin, Shein's director in Singapore.

In the Philippines and Malaysia, Shein ranked 3rd and 5th respectively among shopping apps with the most active users in the first 11 months of 2022. Besides, Shein is also the most downloaded shopping app. 4th in Thailand.

With this orientation, Shein really becomes a new force that competes with Shopee, Lazada, or even TikTok, despite the aforementioned e-commerce platforms offering a wider variety of products.

Especially in the context, a recent report suggested that Shein may soon switch to an eCommerce platform similar to Amazon instead of positioning as a digital fashion company. This means that Shein can also sell third-party brands.

This not only helps Shein get more customers, but also helps to supplement the product portfolio that the company lacks compared to Shopee, Lazada, TikTok .

The source said that Shein will start to focus more on brick-and-mortar stores. At Shein's first store in Tokyo, shoppers can take selfies in large and themed changing rooms. They can also use QR codes to make purchases online or through the Shein app.

In addition to the price, Shein will also make a difference with Shopee, Lazada, TikTok. All three of these names have features such as live shopping and interactive games.

Ultimately, though, the key to Shein's success is still solving the fragmented logistics problem in Southeast Asia. If Lazada took 10 years to solve, Shopee took about 7 years, Shein needs to be faster.