Shein wants to become a direct competitor to Amazon and Temu

August 11, 2023 by
Frank Calviño

With its strategy of selling its brand and incorporating third-party brands, Shein is becoming a marketplace platform, providing new growth opportunities.

The change also involves a shift in content, expanding beyond fashion, beauty, and lifestyle. Users are increasingly finding a variety of products on Shein, which surprises them as the platform is primarily known for its offering of competitively priced fashion.

Shein has established itself as a go-to platform, earning users' trust and steadily growing its presence through social media, logistics, value for money, and, above all, its product offering.

Regarding its new market strategy, it is ambitious. It presents challenges in the supply chain, management of third-party brands and sellers, logistics, and the incorporation and review of new products along with their promotion.

New focus, new goal, new Shein

The goal seems clear: with its new focus, Shein aims to help 10,000 sellers achieve $1 million in annual sales within three years.

Amazon has long been a dominant force in online shopping, but Shein now faces a new competitor in Temu. This platform operates with a similar business model and specializes in niche items, attracting a dedicated customer base. However, both companies have encountered disputes and challenges regarding supply chains and sourcing practices, particularly related to the management of cotton from Xinjiang, China.

Shein has implemented a market strategy to overcome these obstacles, including localization efforts. They are expanding their global hiring and infrastructure construction in China and other countries with potential. This proactive approach demonstrates Shein's commitment to responsible practices and helps address concerns surrounding their operations. With these measures in place, Shein is well-positioned to compete with both long-standing giants like Amazon and emerging challengers like Temu in the e-commerce industry.

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