The bigger companies have a peculiar knack for humble beginnings. Be it Apple, Amazon Google all started with a small garage. The trend seems to be continuing today as well.
Chris Xu was a former Search Engine Optimization marketing specialist. Xu started a company called ZZKKO, which sold Wedding Dresses. The company then shifted to general womenswear with a new name Sheinside and a domain name Sheinside.com.
The company did its business by acquiring products from China. The company didn’t involve itself in design and manufacturing and used third party players for the purpose. In 2015, the company citing short, crisp and a memorable name shifted to a new and the current name: Shein.
Shein surprising everyone has risen beyond everyone expectations. With a valuation of $100 billion, the startup is the third most valuable one behind only Tesla and ByteDance (TikTok’s parent company).
Worldwide, the Company’s shopping app is the second most popular app. The company’s app is currently the most downloaded shopping app in the US, above Amazon. Yes, the startup has actually left Amazon behind.
However, the company’s growth is not free of difficulties. The pandemic provided the perfect condition for the app to grow. In 2020,the company’s growth rate was at 250%. However, as the pandemic receded, the growth rate plummeted to 60% in 2021.
Several other social factors are also impeding the Company’s unbelievable growth. The Company was accused of supporting the far right as a Swastika pendant was for sale on its platform. It has also been accused of promoting Gender appropriation, Stealing from small independent designers as well as denigrating the environment.
The Company is facing tough times. However, a growth rate of 60% for a company of this size is commendable. We hope Shein continues to grow and satisfy its customers.