Shein, pronounced as SHEE-In, is a Chinese fast-fashion retailer that has taken the world by storm with its rapid growth and massive market presence. Founded in October 2008 by Chris Xu, an American-born Chinese graduate of Washington University, Shein initially started in Nanjing, China, under the name ZZKKO. The company rebranded to SheInside in 2012 and later adopted Shein in 2015. As of 2022, Shein has become the world's largest fashion retailer, surpassing traditional giants like H&M and Zara.
Headquartered in Singapore, Shein operates primarily as an online-only retailer. This strategic choice allows Shein to maintain a limited physical presence while reaching a vast customer base across 220 countries. The Shein business model revolves around producing trendy and affordable fashion items directly to consumers, eliminating intermediaries to offer competitive prices. This direct-to-consumer approach is complemented by an innovative on-demand production model, which minimizes waste by producing only what customers want based on real-time data. Here’s a comprehensive list of all the essential statistics you need to know about Shein.
1. Market Share and Growth
- Global Market Share: Shein holds the largest percentage of the fast-fashion market share globally, surpassing competitors like Zara and H&M.
- UK Market Share: Shein has captured 2.2% of the UK fashion market, closely trailing Zara's 2.4%.
- US Market Share: In November 2022, Shein held a staggering 50% of the U.S. fast fashion market, making it the dominant player in the segment.
2. Revenue and Profit
- Annual Revenue: Shein generated an estimated $32.5 billion in revenue in 2023, marking a 43% increase from the $22.7 billion it made in 2022.
- Profit: In 2023, Shein raked in $2 billion, outperforming rivals like H&M.
- Revenue Forecast: According to a 2023 investor presentation, the company expects its revenue to reach $58.5 billion by 2025.
3. User Base and Demographics
- Active Shoppers: Shein boasts over 88.8 million active shoppers worldwide, with 13.7 million from the US.
- App Downloads: In 2023, the Shein app had over 261.9 million downloads, with more than 200 million downloads in 2022 alone.
- Customer Demographics: The average Shein customer is female, around 35 years old, with an annual income of approximately $65,300. She spends about $100 monthly on women's clothing, which is 60% higher than the average US woman.
4. Geographical Reach
- Global Presence: Shein operates in over 150 countries, including major markets like the United States, France, Russia, Germany, Spain, Italy, and Saudi Arabia.
- Top EMEA Countries: Spain, Italy, and Saudi Arabia are the top three EMEA countries regarding the number of Shein downloads as of 2022.
5. Environmental Impact
- Carbon Emissions: Shein's production volume increased by 57% in 2022, leading to a 52% rise in emissions. The company's absolute emissions grew from 6.04 to 9.17 million tons CO2e from 2021 to 2022.
- Sustainability Goals: Shein aims to reduce its greenhouse gas emissions (scopes 1, 2, and 3) by 25% by 2030 and become carbon-neutral in scope 2 by the same year. The company has committed $7.6 million to a partnership with the Apparel Impact Institute to implement energy efficiency programs.
6. Social Media and Marketing
- Influencer Partnerships: Shein has partnered with thousands of influencers on platforms like TikTok and Instagram to promote its products through "haul" videos. This strategy has significantly contributed to its popularity.
- Most Downloaded App: Shein was the most downloaded shopping app in 2022 and remains TikTok's most followed fashion retailer.
7. Labor Practices
- Working Conditions: Investigations have revealed that Shein employees often work in unsafe conditions, with some working 75-hour shifts and earning as little as $20 a day. The company has faced criticism for violating labor laws and failing to provide adequate wages and working conditions.
- Supplier Code of Conduct: In response to these criticisms, Shein has implemented a code of conduct based on International Labour Organization conventions and has engaged independent agencies like Intertek Group to conduct regular audits of supplier factories.
8. Competitive Landscape
- Fast Fashion Competitors: Shein's rapid growth has put it in direct competition with established brands like Zara and H&M. Despite this, Shein has managed to outpace its competitors regarding sales growth and market share.
- Sustainable Competitive Advantage: Shein leverages its fast fashion model, affordability, strong online presence, and global supply chain to stay ahead in the competitive fashion industry.
9. Consumer Spending
- Average Spending: The average Shein customer spends about $100 per month on women's clothing, significantly higher than the average spending of the country's population.
- Frequent Purchases: Shein customers shop more frequently than the average American, both online and in stores.
10. Future Outlook
- Marketplace Platform: Shein is exploring a move to an online marketplace platform to enable other merchants to sell directly to customers. This shift is part of the company's strategy to increase customer engagement and satisfaction.
- Supply Chain Diversification: With its headquarters in Singapore, Shein has begun manufacturing in Turkey and is leasing and operating warehouses in Poland to serve its European customers better.
