In a bid to solidify its position in the global market, Shein has embarked on an ambitious journey to create its own brands. This strategic move is reminiscent of Amazon’s attempt to diversify its offerings with its own brands. However, Shein seems to have learned from Amazon’s mistakes and is adopting a more segmented approach.
Shein’s Diversified Brand Portfolio
The company has launched a range of brands catering to different consumer segments. For women’s fashion, there’s BAE, SXY, EZwear, and Emery Rose. Manfinity is designed for men, while Cozy Cub and JNSQ cater to children’s and sports fashion, respectively. Shein has also ventured into other sectors with brands like Sheglam for makeup and Jmmo for electronics.
In addition to its own brands, Shein has integrated over 70 local brands and retailers in Spain into its marketplace, adding 100 sellers. This move reflects the company’s intention to adapt to local market particularities while maintaining its global business model.
A Broader and More Diversified Segmentation Strategy
Shein’s approach is more comprehensive than Amazon’s, which attempted to diversify its offerings with its own brands in 2017. However, Amazon’s strategy did not yield the expected results, and the company restructured its portfolio in 2023, eliminating 27 own brands.
Shein’s revenue has slowed down after a period of rapid growth. In the first half of 2024, the company’s revenue grew by 23%, a figure far from the 40% growth registered in the same period of 2023. Despite this slowdown, Shein remains a significant player in the global fashion market.
European Market Performance
In Europe, Shein reached a turnover of 7,684 million euros in the last year, an increase of 68% compared to the previous year. The company’s British business generated revenues of 1,550 million pounds during 2023, representing a 38% increase.
Global Expansion and IPO Plans
Shein operates in over 150 countries and is waiting for the British financial authorities to accept its initial public offering (IPO) to list on the London Stock Exchange. The company’s global revenue reached an estimated 35.4 billion euros in 2023, with the USA being its most important market.