Apparel Business Stuns With a 100$ Billion Valuation
Fast Fashion-a term that has revolutionized the way today’s fashion industry operates and has lodged its name as a prime in successful business models club. A recent addition to the fast-fashion billion-dollar union is ‘Shein’.
According to Bloomberg, the Chinese couturier recently achieved a private market valuation of 100 billion dollars.
This comes just after a series of cynical reviews toward the industry being called out for substandard environmental sustainability.
From selling wedding dresses to launching a billion-dollar firm
The company is the product of Chris Xu, a search engine optimization expert. Xu began in 2008 by selling wedding dresses online under the name ZZKKO.
Four years later, the company got a name change to Shein and branched out into the general apparel business.
Although the company mainly focuses on women’s wear, it has expanded its branches in other categories including men’s wear, children’s clothing, accessories, shoes, bags and other fashion items.
An annual billion-dollar turnover!
Today Shein, is an online-only global fashion empire with customers in 150 countries and $11 billion in annual sales.
The Nanjing, China-based company is now more valuable than Zara and H&M combined, its biggest brick and mortar fast-fashion competitors.
The $100 billion valuation puts the Nanjing firm as the third most valuable private company in the world, behind only ByteDance, the parent company of TikTok, and SpaceX, Elon Musk’s rocket company.
And while Shein is based out of China, it ships to 220 countries, with the US serving as its largest consumer market.
In June, Shein overtook Amazon for the first time on the iOS App Store to become the leading US shopping app, a title it holds in over 50 countries.
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The billion-dollar approach for a winning business model
Xiu being an SEO specialist knew the internet algorithms far too well and utilized them to the best of his abilities.
The company uses algorithms that track browsing activity on TikTok, Instagram, Google, and other digital platforms.
This information is turned into limited production, on-trend clothing in about three days.
Items are then marketed online and by thousands of commission-based social media influencers. Tapping into the burgeoning influencer community to market its goods has been pure genius.
And the company, borrowed from TikTok’s experience by spending lavishly on digital ads to reach and remain top in the most consumer mind.
