Shein CEO Chris Xu Cracks The Holy Grail Of Online Marketing

With low prices, diverse designs, and influencer marketing, Shein has become a $100 billion company

In 2008, a small drop shipping company in Nanjing, China, named Shein, grew into a fast fashion sales empire with a valuation of $100 billion. Thanks to the marketing strategy of CEO Chris Xu and his philosophy of diversified clothing development. Currently, Shein sells its products in 185 countries and territories worldwide.

Shein’s success is due to its cheap sourcing channels and dependence on timely manufacturing. All of Shein’s clothing comes from its factory in Guangzhou, China, in the light industry. Shein has mastered the art of wholesaling clothes and selling them below market price to global markets such as North America and Europe.

In Canada, where the average cost of a dress is around $20 +, Shein can keep the price down to $10 or slightly more. This works great for those on a limited budget. They can get more for their dollar, well-designed clothes at a low price without breaking the bank.

The company’s success stems from its multifaceted marketing techniques. Shein grew from a $15 billion company to a $30 billion company during the pandemic, largely thanks to giveaways and AD programs on TikTok, YouTube, Facebook, and Instagram. Shein invited many well-known fashion bloggers to cooperate and shoot promotional videos promoting the company’s shopping channel. The campaign’s success was evident as it saw the company’s App downloaded more than Amazon on May 17, 2021.

Shein’s success stems from its understanding of design styles, product variety, and inclusive clothing sizes. The company is not just an online retailer, its sells similar products often found on Amazon at lower costs.

Shein’s approach to inclusion is evident from the start; has openly accepted all backgrounds and races and celebrates body positivity. They feature models in many of their Ads with diverse body shapes and sizes, which may be why they have a large following in the plus-sized community.

They sell clothes in sizes from XXS to XXXXXL and have created a Curve+ Plus category to help customers quickly select the kind of clothing they need. The company created the Shein X New Incubator Program, which invites over 50 young, diverse, creative designers to participate in a monthly challenge. The goal is to help emerging talents launch their careers through collaborating.

Through its innovative marketing approach with bloggers and online influencers, Shein has taken advantage of the online pandemic shopping boom, and its success has become an unreplicable existence.