Shein has become the largest fast-fashion retailer in the U.S., driven by pandemic-fueled e-commerce growth and a mobile-first strategy. This remarkable ascent has reshaped the landscape of Fashion Sales.
Shein’s Meteoric Rise in Fashion Sales
As of June 16, 2021, Shein commanded a significant 28% share of the U.S. fast fashion market, surpassing established giants like H&M (20%), Zara (11%), Forever 21 (10%), and Fashion Nova (8%). This represents a staggering increase from Shein’s 13% market share at the beginning of 2021 and underscores the brand’s rapid growth in fashion sales. The overall U.S. fast fashion market experienced a 15% growth between January 2021 and mid-June, but Shein’s growth within that same period was an astounding 160%.
Source: Earnest Research, June 2021.
Mobile-First Strategy Fuels Fashion Sales Success
Shein’s success can be attributed to its mobile-first strategy, capitalizing on the accelerated adoption of mobile shopping during the pandemic. Zara, alongside Shein, was the only other fast-fashion brand to increase its market share during this period. While fast fashion sales have recently surged, experts predict a potential decline due to growing consumer awareness of the industry’s environmental and social impact.
The Future of Fashion Sales: Sustainability and Digital Dominance
Some analysts project a 10% to 30% revenue drop for fast-fashion retailers in the next five to ten years, as consumers increasingly prioritize sustainability. The shift towards mobile shopping is undeniable, evidenced by the nearly 2.8 million mobile shopping app downloads during Black Friday 2020, an 8% year-over-year increase.
Source: Apptopia
Shein’s dominance extends to app downloads, surpassing even Amazon in the U.S. However, Amazon, Walmart, and Wish remained the most downloaded shopping apps in 2020 overall. Shein’s digital triumph follows a 2018 data breach affecting over 6.4 million customers.
Conclusion: Navigating the Evolving Landscape of Fashion Sales
Shein’s remarkable growth highlights the transformative power of digital strategies and mobile shopping in the fashion industry. However, the future of fashion sales hinges on balancing rapid growth with sustainable practices and addressing ethical concerns. The increasing consumer demand for environmentally and socially responsible fashion may reshape the industry in the coming years.
