Shein Online Marketing Growth Case Study
Shein case study & success story
Since May 2021, Shein has surpassed Amazon as the most downloaded shopping app in the United States. You shouldn’t miss its brand story, with an expected IPO in 2022 and a valuation of $47 billion.
Let’s drill the hidden secrets of not only the future of e-commerce but also of consumer behavior by delving into Shein’s business model and the phenomenon it produces.
We hope that everyone knows the basic details of the brand like:
| Company Name | Shein |
|---|---|
| Headquarters | Guangzhou, Guangdong, China |
| Industry | Fashion E-commerce Marketplace |
| Founder | Chris Xu |
| Founded | October 2008 |
| Total Funding | $2.1 billion (April 2022) |
| Revenue | $15.7 billion (FY2022) |
| Valuation | $100 billion (April 2022) |
| Website | shein.in & shein.com |
The tagline is “Shine In, Shine Out” with the mission & vision on providing value for money fashion and brings quality with the product, which don’t empty your wallet.
AND OF COURSE IT IS POSSIBLE FOR CHINA.
Shein always appears at the top of searches for terms like hoodies, dresses, and t-shirts. You return to Shein’s website after looking around and comparing styles and prices. The story of Shein is simple: trendy and cheap. When Shein first caught the attention of consumers, it appeared too good to be true. At this price, no one else is selling clothes as trendy. Since then, Shein Haul videos have flooded major social media platforms like Instagram, TikTok, and Youtube: astonishingly low prices for ridiculous clothing in the most recent styles.
Manufacturing module
Shein will gain valuable earned marketing exposure as a result of the highly shareable content in these outfit and haul videos. Customers feel less able to relate to the lifestyles of influencers as they become more like celebrities. People’s need for fashion to express themselves grows, but neither does their budget. Shein, on the other hand, is the ideal solution. Shein is able to closely follow micro trends while keeping costs to a minimum, thanks to its on-demand manufacturing model, which produces small batches of products.
Shein is able to produce an average of 6,000 new styles per day thanks to its independent closed-loop marketing, design, and manufacturing system. In GUANGDONG, South China shein outsource it is production to local suppliers, shein supplier workers complete at lest 75 hours job in a week, story already reported in publiceye.
Shein works with thousands of suppliers but never dislose it is actual figure or number but during the covid shein reported it is sales revenues topped 63.5bn yuan (£7.4bn) in 2020.
Marketing Module
Let’s do quick pass and understand numbers.
In 2021 shein mobile application got over 177 Million downloads with 43 Million users world wide and plus 10 million monthly active users in the US online market alone. On TikTok, the hashtag #Shein has garnered over 32.3 billion views.
So what is the secret of the phenomenal marketing strategy of shein?
It is Digital marketing? or SEO startegy of it is CEO?
Well Yes & also NO. Because shein marketing not dependent on only paid media but supply chain is playing major role in it is sparking success.
Let’s decode the fusion!
Shein secret strategy is depend on it is micro-influencer marketing Today if you spend 1 USD as CPC (cost per click) then you will have to spend thousand of dollars to achive the minimum margin sales growth. Hence shein use micro & regional influencers to do the marketing of the products, and these micro influencers charge around USD 500 to USD 2000 in India and around AED 5000 to 25000 in Dubai (UAE). Hence, brand awareness process becomes easier and faster. As per the article of CNN today TikTok plays a large role in driving customers to the company website.
Other points:
- Always trending in TikTok
- Non-stop micro influencer marketing on YouTube, Instagram, TikTok
- Competitive pricing then other western brands product
- Shein’s data-integrated supply chain is a key contributor to rapidly identifying popular trends and delivering minimum-viable-products.
- SEO that matters shein in staying into top 10 list.
- Updated tech in app and rewards.
Let’s take a look at quick media distrubution!
45.2% from search – 38.3% from direct – 7.2% from social media – 3.3% from Display – 3.2% from mail – 2.8% referrals : Source similarweb
Shein Supply Chain
As per the shein they refill the investory within 15 to 20 days. As per the shein authorized release shein works with 20,000-30,000 original design manufacturers and 1,000-2,000 original brand manufacturers and around 500 free-on-board (FOB) factories. The FOB factories have been scaling up their production and processing capacity.
This may sounds unbelieable but shein upload 5000 to 8000 SKU daily to replace the old designs per cent around 60%
Supply regions:
Middle East is an significant region for Shein buyers because of social and multi-consumer demography, Shein entered in the middle east market in 2016 and within short period of time sales reached to USD 28991388.00. Today shein is in trend and under top 10 shopping list in the middle-east.
