The world’s most successful retailers – think Amazon, Alibaba and Farfetch – all have one thing in common. You run a marketplace business.
Chinese ultra-fast fashion giant Shein is considering a strategy shift to compete with even bigger retailers, according to new media reports.|
The Wall Street Journal reports on a memo Shein sent to its investors that said the company is considering selling third-party merchandise alongside its own brand. The Singapore-based company has recently focused on divesting its operations, opening warehouses in Poland and manufacturing clothes in Turkey.
“The Marketplace platform offers a number of additional merchandise and shipping options, and we expect this will result in increased customer retention and satisfaction,” reads the memo, published by The Wall Street Journal. Responding to a request from FashionUnited Shein hasn’t responded yet.
Rapid innovation
A report “The Future of Marketplaces” published by Huge Commerce states that by 2024 three quarters of the world’s top social content creators and influencers will be running their own shops via marketplaces. As marketplaces innovate at a rapid pace, introducing new features and entirely new lines of business, how they connect with customers is critical.
Brands can reach their customers on marketplaces with personalized recommendations, multimedia product detail pages with cross-selling opportunities, celebrity and athlete content, and seasonal reminders to buy new shoes based on personalized algorithms and order history data.
With its almost 45 million online customers, Shein could open up a source of income that fast fashion retailers have not yet mastered.
This translated post previously appeared on FashionUnited.uk.