Competition is increasingly fierce among the main global marketplaces. Shein is working to transform, little by little, in a new Amazon – company that currently holds 37% of the United States retail market. Today, Chinese e-commerce focuses on selling clothes, makeup, shoes and accessories.
Nonetheless, The proposal is to become a reference in e-commerce by expanding its product selections. Shein's recent proposal is to win new partnerships with brands, como a Colgate/Palmolive, home care, e a Hasbro, specialized in toys.
The company announced that it is working on this strategy during an event held last Tuesday. Nonetheless, despite now gaining strength, This is a movement that has been taking hold since last year. Shein upholds the objective due to the needs of its customers. According to the representatives, consumers are looking for new brands.
Challenge for marketplaces
At the moment, Shein already dominates the internet clothing market and its popularity is significant among young people and TikTok users. Em 2022, the company was valued at US$ 100 billion, representing more than the valuation of many fast fashion competitors, like Zara and H&M.
Even so, Currently, its total revenue from e-commerce is well behind Amazon. Shein raises US$ 2 billion annually, while Amazon reaches the value of US$ 30 billion. Beyond Shein, Amazon has another significant threat: the popularization of the Chinese marketplace Temu.
Nonetheless, One of Amazon's main advantages is its fast deliveries. The difference is 24 hours to, on average, two weeks for Asian shipping and delivery. This is an issue that Chinese competitors must study in depth to gain even more space.
Opposite movement
The fight between marketplaces is announced on both sides. Just as Shein seeks to conquer spaces previously led by Amazon, Amazon wants to dominate Shein’s specialized products. The market leader's proposal is to expand its business into the clothing and clothing segment. One strategy that has been used to achieve this objective is the reduction of commission rates for salespeople in the sector..
