Fast fashion retailer Shein has now overtaken Amazon in app downloads
- Fast fashion retailer Shein has had more monthly app downloads than Amazon and Shopify this year.
- The company is reportedly valued at $100 billion, more than Zara and H&M combined.
- Shein works with an on-demand model, which allows it to track customer trends in real time.
Chinese fast fashion company Shein is gaining on some of the biggest e-commerce players in the game.
Shein’s monthly app downloads topped those of Amazon Shopping and Shopify’s Shop app in February, March and April, according to a report by Bernstein.
Through April, Shein gained 4% more app downloads than Amazon Shopping, while Shopify’s Shop app downloads slowed. From January to April this year, Shein recorded 13.8 million app downloads, up from 9.2 million during the same period in 2021, a jump of 50%. Meanwhile, Amazon Shopping saw 13.3 million and 13.2 million downloads respectively during those periods, an increase of just 0.75%.
Since he spear in 2012 as SheInside, the online retailer achieved tremendous success. The company posted $10 billion in revenue in 2020, and as of June 2021 claimed 28% of the U.S. fast fashion market, according to research by data analytics firms Coresight Research and Earnest Research. .
This success caught the attention of investors.
Shein has raised between $1 billion and $2 billion at a $100 billion valuation from private equity firm General Atlantic, Tiger Global Management and Sequoia Capital China, making it more profitable than fast fashion giants Zara and H&M reunited, The Wall Street Journal reported in April. Prior to that, the company had an estimated valuation of $15 billion after raising funds in August 2020, according to data from PitchBook.
The company is the largest online-only fashion retailer, according to at Euromonitor. And its rise is largely due to its business model and an explosion in e-commerce during the pandemic.
The company’s makers scour every corner of the internet for new clothing trends, and once they spot a piece with viral potential, they produce it in small batches. Depending on how that piece is selling, they are either ramping up its production or stopping it altogether. Their supply chain management software allows them to monitor customer research data and share it with manufacturers in real time, Insider’s Mary Hanbury reported last year.
Shein has had a presence in the United States since 2015, with offices in Los Angeles and another in Washington, DC. In March, the company opened a distribution center in Whitestone, Indiana, which is expected to create 850 new jobs for residents of the city, Journal & Courier, the daily newspaper in Lafayette, Indiana, reported.