To some extent, the current fast fashion independent station sellers are being led by a number of head brands. Other small and medium-sized sellers can only add money to the price at which SHEIN gets the goods from the factory.
SHEIN has the strength.
According to the latest data, SHEIN's revenue in 2020 is nearly $1 billion (64.3 billion yuan), making it a top dog among a number of well-known cross-border e-commerce companies.
What is the amount of clothing purchases that can support 10 billion dollars in revenue? It is no exaggeration to say that as long as you become a supplier to SHEIN, the factory will be able to live well even if no one else buys its clothes in the coming year.
However, SHEIN low price, priority procurement, almost "dominate" the supply side, to peer clothing sellers formed a "crushing trend".
When doing business, the competition among peers is, in the final analysis, the competition of resources.
And the squeeze caused by SHEIN to small and medium-sized sellers is also naked.
The extreme up-to-date speed, huge traffic and consumer groups have enabled SHEIN to accumulate a huge database, according to which SHEIN can learn about young people's favorite fashion elements, which will be presented in its new products.
And these new products, in the form of advertisements, videos, wearing tutorials and so on, will make more young consumers become the crowds of SHEIN.
Although, in the fast fashion track, SHEIN also found fatal defects, but at the moment, SHEIN is irresistibly becoming the flagpole of Chinese DTC fast fashion overseas brands and the research and learning object of many DTC brands.
Of course, it has also become a behemoth that many small and medium-sized sellers are untouchable and dare not fight, crushing the living space of these small and medium-sized sellers. But the giant ship has begun to roll, and how many people are jumping on the fast fashion DTC brand regardless of the consequences?
Under such circumstances, how far can SHEIN go? We'll see.
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