Shein, a Chinese apparel company, is becoming a major player in the global fashion industry, with a market value of $100 billion and a strong presence in over 150 markets.
- Shein’s popularity is starting to negatively impact South African clothing retailers, with 22seven insights showing that shoppers who spend at Shein spent 20% of their entire clothing and footwear budget at the Chinese retailer last year, and that the average Shein shopper’s monthly apparel spend is more than double that of non-Shein shoppers.
- Shein’s success is due to its ability to offer desirable, popular fashion at ridiculously low prices, and to take advantage of the online shopping trend, particularly during the pandemic.
- The major South African retailers, such as TFG and Mr Price, are concerned about Shein’s impact on their market share, and are calling for a level playing field, as Shein reportedly sends goods in small parcels with values of under R500, which means they are exempt from import duties.