Since the start of the pandemic, fashion brand Shein has turned the world of e-commerce upside down. The fast fashion app recently reached 81 million downloads. In the United States, it is downloaded more than Amazon, which also offers clothing. In a study, Similarweb (a solution that enables thewebsite analysis), deciphers the success of the Chinese company and compares its performance with that of the Seattle company.
Shein, a meteoric rise
Since its inception in 2008, Shein has grown exponentially. Launched as Sheinside, then rebranded in 2015, the Chinese brand has made a name for itself thanks to highly targeted advertising, fast international delivery and unbeatable prices. It is also distinguished by the quantity of products offered: it is estimated that between 5,000 and 10,000 new items are added to the site every day. For this, it produces a quantity of items on its own, but also calls on other sellers. This is therefore similar to the operation of a marketplace. This allows it to mass produce, much faster than its competitors H&M or Zara.
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To understand Shein’s success, just take a look on social networks. Every day, many netizens make Instagram posts and TikTok videos to show off their valuable purchases made on the platform. Cheap, trendy and present on all social media, it was enough for Shein to seduce consumers, and particularly Gen-Z. The study reveals that the brand generated nearly 11% of its web traffic from social platforms. This is more than double that of the fashion and apparel sector (4.7%). On mobile, this figure rises to 20.9%.
As Similarweb explains, younger generations appreciate the multiple benefits that the brand offers: the more you visit the site, the more rewards you get. It is even possible to participate in contests to get discounts. A gamification that encourages consumers to connect regularly.
The rise of e-commerce during the health crisis and its operation proved the Chinese brand right. In 2021, the platform recorded $10 billion in revenue. Gradually, its place in the textile industry is gaining importance. With 28% market share, Shein is the largest fashion player in the United States (Earnest Research, June 2021). H&M owns 20% and Zara 11%.
Shein, new competitor for Amazon?
It should therefore be said that Shein outweighs the competition. A question emerges however: can it become a competitor of Amazon? The Seattle company also has a textile category. In terms of web traffic, it is ahead of the fashion brand with 89 million visits per month in the United States (August 2021). For its part, Shein records 26 million.
Nevertheless, the Chinese company seems less impacted by seasonality than Amazon. Its number of visits is less variable, and above all growing: its traffic has almost tripled since January 2020, rising from 10.6 million to 27.8 million. The American company, however, enjoys greater brand awareness: it receives 58.8% of traffic from direct channels, while Shein obtains 36.7%.
The brand’s investments in paid search are still helping to improve this figure and stimulate its growth. In 2021, Shein received 18.9% of its global desktop traffic through paid search. This is more than the average for the fashion sector (11.7%), and than Amazon (3.2%).
In terms of converted visits, the two companies are neck and neck. Amazon’s conversion rate (CVR) for fashion and apparel is 4.5% on desktop and mobile. Shein, which had a CVR of 1% in 2019, now overtakes the Seattle company. Its rate reached 5% in March 2021. This is explained by the fact that Shein’s model (low-cost fashion, affordable clothing and fast delivery) facilitates decision-making when buying.
It should therefore be said that the Chinese company has managed to establish itself quickly in an already crowded market. Thanks to the diversity of its products and its market shares, Amazon still holds its own. It remains to be seen whether Shein will follow the American company’s path in diversifying its offering.