According to news on August 5, SHEIN Indonesia’s official website stated that it has stopped operations in Indonesia, effective from July 29.
The notice shows that orders placed before July 29 will still be dispatched as soon as possible, and the website is still accepting customer service inquiries until further notice.
Data from the network analysis website SimilarWeb shows that the number of visits to the SHEIN Indonesia station in September 2020 was less than 5,000, which is far from Zalora, which is also a fashion e-commerce company. Zalora’s number in the same period The number of visits is close to 2.7 million.
SHEIN was established in Nanjing in July 2008. It is my country’s largest cross-border fast fashion company, specializing in women’s clothing. It has been providing services to Indonesian customers since 2018.
Indonesia is the largest e-commerce market in Southeast Asia, with fashion and beauty being the most popular categories in the local market. In addition to Zalora, there are other popular fashion brands including Berrybenka and iStyle.
In the face of such huge development potential in the Indonesian market, it is not clear why SHEIN chose to withdraw.
The editor learned from statistics from the data analysis website Similar Web that the number of visits to the SHEIN Indonesia station in September 2020 was less than 5,000, which is far from the local fashion e-commerce Zalora. Zalora had nearly 2.7 million visits during the same period, which may be one of the reasons why SHEIN withdrew from the Indonesian market.
It is reported that SHEIN has just established a “regional hub” in Singapore in June this year to expand the Southeast Asian market. As part of its expansion plans, SHEIN will work with designers in Singapore and other parts of Southeast Asia to develop new ranges.
Currently, SHEIN has opened independent brand websites in Singapore, Thailand, Vietnam and the Philippines, and plans to create an independent website in Malaysia in the future.
In addition, the editor learned that earlier this year, the American professional cosmetics brand NYX also announced its withdrawal from the Indonesian market and permanently closed its stores on 6 platforms including Shopee, Lazada, Tokopedia and Sociolla.
As for why these brands gave up the Indonesian market, we have no way of knowing. After all, the companies have their own development plans and market strategies. But what is certain is that consumers will experience a different consumption experience through brand replacement.
Tianyancha information shows that SHEIN was established in July 2008 and is my country’s largest cross-border fast fashion company. It specializes in women’s clothing and also provides men’s clothing, children’s clothing, accessories, shoes, bags, etc. The company has Nanjing headquarters and multiple branches in Guangzhou, Shenzhen, Changshu, the United States, Belgium, and Dubai. In March this year, the registered capital of its main company, Shenzhen Kushang Information Technology Co., Ltd., increased from 5 million yuan to 100 million yuan.
In July, SHEIN established a new center in Singapore to expand the Southeast Asian market. Currently, SHEIN has opened independent brand websites in Singapore, Thailand, Vietnam and the Philippines, and plans to create an independent website in Malaysia in the future.
Sensor Tower store intelligence estimated data shows that in the first half of 2021, SHEIN has risen rapidly in the Americas, Europe, Southeast Asia and the Middle East, with approximately 75 million downloads in this issue. It surpassed Shopee and Wish to rank second on the list, becoming the world’s number one mobile fast fashion brand.
At the same time, SHEIN is also the largest shopping advertiser on the two social platforms of Instagram and Facebook in the United States in Q2 2021.
SHEIN aims to surpass ZARA in sales within 2 years
In June this year, the daily package volume of Chinese fast fashion brand SHEIN stabilized at More than 1 million orders, average customer price is 70 US dollars. Based on this calculation, SHEIN’s daily sales exceed US$70 million, and monthly sales are expected to exceed US$2 billion. In the first quarter of this year, SHEIN’s average monthly sales were US$1.2 billion.
SHEIN is the No. 1 iOS shopping app in both countries and regions, and ranks No. 1 in the Android device category in 13 countries and regions.
There are endless rumors about Shein preparing for an initial public offering. According to relevant reports, after the latest round of financing, Shein’s valuation has exceeded 300 billion yuan, equivalent to approximately US$46.8 billion. But in May 2021, Bloomberg News and fashion business media Bof reported that Shein denied rumors of an imminent IPO and said, “The IPO plan is a long-term goal and will take one or two years to come.” Shein also told Bof that the rumored market valuation was inaccurate. However, it did not disclose the exact valuation amount.
As Shein’s influence grows, his every move attracts attention from the outside world. In fact, in addition to the above-mentioned accusation of suspected plagiarism in selling Martin boots, Shein was sued by jeans brand Levi’s for trademark infringement as early as 2018.�Levi’s accused Shein of copying the “Arcuate” stitch pattern, which usually appears on the back pocket of Levi’s jeans, and then this classic pattern was incorporated into the brand’s trademark. The infringement case ended with a private settlement between the two parties.
In addition, many niche designers and artists publicly accused Shein of plagiarism and infringement on social media. On June 5, 2021, Kikay, an earrings e-commerce brand in Los Angeles, USA, pointed out on the social media Instagram that a pair of frog earrings sold on the Shein platform are very similar to its original design earrings launched in November 2020, and questioned the former’s plagiarism.
Interface Fashion has seen that the relevant content has received more than 26,000 likes and more than 1,000 comments as of press time. Kikay brand founder Quinn Jones said in an interview with the Financial Times that some of these comments came from small fashion retailers, who said they had similar experiences of infringement. In August 2020, independent designer Emma Warren, who sells e-commerce directly sold clothing, also publicly accused Shein of plagiarism on Instagram.
Faced with these doubts, Shein’s usual approach is to remove the controversial products. Currently, products under the “Martin Boot” label cannot be searched on the Shein App. After being publicly defended by the Kikay brand, Shein has also removed the controversial earrings products.
The Financial Times reported that under pressure from public opinion, Shein finally apologized to Quinn Jones and promised not to cooperate again with suppliers that produce allegedly infringing goods. In a public statement, Shein expressed “considerable respect for artists and designers.”
Interface Fashion previously reported that Shein’s new release cycle is extremely short and has a massive number of SKU. The reason why this is possible is that Shein has a strong and extremely fast flexible supply chain, as well as overseas warehousing and logistics systems in key areas around the world. This allows Shein to ship goods such as clothing and accessories produced in China to more than 220 countries and regions around the world in a relatively short period of time. Such a need for speed undoubtedly puts huge pressure on the brand design innovation department. </p
