The “Shein, Temu and TikTok: Disrupting the Runway, the Future of Fashion Retailing” report has been added to ResearchAndMarkets.com’s offering.
The global fashion industry stands at the precipice of transformation. Shein will become the World’s biggest fashion player this year. With turnover of US$22.7bn in 2022 the company outperformed H&M’s sales, but was still behind the combined turnover of all the Inditex brands taken together.
The compelling rise of Shein and its impressive growth is mainly down to its innovative business model. The set up is quite special – and could perhaps only be executed in China, as it is based on a combination of speed and the reversal of signal flows in the supply chain.
Shein works as a platform for a multitude of manufacturers and suppliers, but not as a 3P marketplace. Only when there is demand on the frontend (the website/app) for a product (and the already produced prototype) will the back end produce the best sellers in meaningful quantities.
“Shein, Temu and TikTok: Disrupting the Runway, the Future of Fashion Retailing”
Key Questions Answered
- How much spend in D2C ecommerce/retail is already going directly to China and its retailers?
- How can Shein and Temu send their products so cheaply to the West? Who is able to make a profit on this? How does this work? Which loopholes are being exploited?
- How exactly do the logistics work? Could others (i.e. non Chinese players) tap into these networks?
- How big will Temu get in 2023? Are the current GMV predictions around USD13bn realistic? Will Temu become a challenger to Amazon? Or is it another Wish?
- What can Western retailers do about this? Can they still compete realistically with price differences of up to 70% between Temu and Amazon on identical products from the same seller?
- Can western payers copy the supply chain model? Or are they shut out by design? Could a Shein like production cluster be set up outside of China and where should this be located?
- How will the fashion business change in future, when it’s no longer Inditex, H&M or Uniqlo at the top? Will environmental standards or labour protection slip back?
- What will be the impact of the EU’s digital product pass – or legislation in Congress on the fast fashion sector and especially on the Chinese apps? Could this stop the Chinese players?
- Will TikTok/livestream shopping take off in the West, as it has in China? Will influencers and virality simply eat the existing industry’s lunch? Will selling from China through a Chinese platform to Western consumers be the next phase of globalisation and retail?
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Features & Benefits
- The global fashion industry stands at the precipice of transformation. This report delves into the fast fashion landscape, exploring key players, market dynamics, and emerging disruptors, with a particular focus on the impact of Chinese retailers. The rise of Chinese retail behemoths like Shein and Temu signals a paradigm shift.
- Understand the threat from China and how serious this is and whether it can still be stopped
- Identify yet another innovative way of how to take costs out of your supply chain
- Grasp Shein’s supply chain set of reacting to existing demand rather than forecasting trends that could go horribly wrong, a complete reversal of how fashion used to be done
- Start thinking about the new consumer of tomorrow
- Data and sizes on Shein, Temu, TikTok
- Data and Sizes of fashion and e-commerce fast fashion markets in the US and the EU, forecast data
- Deep Dive analytical examination of the Business models
- Strategic recommendations of what can be done if you’re not a Chinese player
- Navigate the intricate threads of the fast fashion industry, unraveling the patterns of innovation, competition, and sustainability that are shaping the future of retail. Our report provides invaluable insights into the global fashion landscape and what lies ahead for this dynamic and ever-evolving sector.
- Sources: This analysis draws upon a diverse range of sources, including market research reports, industry publications, financial data, and expert opinions. We have meticulously compiled data to provide an informed and comprehensive perspective on the fast fashion industry and its future outlook.
Key Topics Covered:
Executive summary
Leading fast fashion players and their revenue history
- Inditex, H&M, Uniqlo, Primark, Asos, Boohoo (Annual turnover in $bn, 2005-22)
- Zalando, About You (Annual turnover in €m, 2009 – 22)
- Apparel, online fashion market sizes, EU and US 2022
The Chinese takeover – The future of fashion retailing
- From outsourcing production to China
- to Chinese sellers on Amazon marketplace
- to Chinese retailers going direct
- The reaction from the West
Shein
- Shein – an introduction
- Shein annual turnover, 45% growth in 2022
- Shein – the TikTok phenomenon
- Operating model – vertical integration
- like a marketplace for suppliers
- Gaming the tax system
- Shein issues: Xinjiang, forced labour
- Regulators response
- Shein – posts US lobbying tab
- Designers sue for copyright infringement
- Shein holds largest U.S. fast fashion market share
- US Fast Fashion Sales 2020-2022 (Asos, Fashion Nova, Forever21, H&M, Shein, Zara % shares)
- Online sales as % of Total US Sales for Fast Fashion
- The victory of online only in fast fashion
- Shein and Forever 21
- A mutually beneficial relationship
- Shein marketplace – will this work?
- The Shein marketplace in the US, launched in May
- Shein to buy Missguided
- Shein UK reaches £1.1bn revenue
- Shein shifts shipping strategy to bring products closer to US shoppers
- Plans to ship Brazil-made products around Latin America from 2026
Temu
- Temu: the new most popular shopping app
- Temu, owned by Pinduoduo
- Temu – Chinese sellers going direct
- The no name brands champion
- Unwanted attention from US Congress
- Temu – aiming for other global markets
- Temu’s lawsuit against Shein
- Temu, PDD growth of 66%, quarterly sales of US$7.2bn
- Temu is now outperforming Shein in the US
TikTok
- TikTok – the video phenomenon
- TikTok: $1bn turnover in international markets
- TikTok investing for growth, huge losses
- TikTok – Project Aquaman
- TikTok, 100m US users, TikTok shop
- Will live streaming work in the West?
- Fulfilled By TikTok (FBT) launched in the UK
- First results of TikTok Shop in the US
Trouble on the horizon for fast fashion?
- The problem – not just the Chinese apps
- The EU’s net zero commitments, the circular economy
- Ultra fast fashion has made everything worse
- The EU’s extended producer responsibility scheme
- A QR code to function like the CE label?
- Sizing & Returns remain the perennial problem
- Solutions from Google, Zalando
Strategic recommendations
- Could western players copy the Shein model?
- Could western players copy Shein’s logistics?
- How could western players stop Shein/Temu?
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