One of the biggest online fashion stores in the world, Shein, is apparently thinking about turning into a marketplace platform instead of just selling its own line of goods.
The decision to enter the internet market will put Shien in direct rivalry with e-commerce heavyweights like Amazon.com Inc. and AliExpress, the international shopping portal run by Alibaba Group Holding Ltd.
Marketplaces, according to experts, are the upcoming big thing. Notably, Huge Commerce projects that, as part of commerce as a service, 75% of the world's top social content producers and influencers will have their own shoppable businesses on marketplaces by 2024. Customer interaction is becoming more and more crucial because there are so many marketplaces that are always delivering new upgrades and even new product lines.
The memo stated that "the marketplace platform makes a variety of additional goods and shipping alternatives available, and we expect it to result in improved customer involvement and pleasure."
Shein has had significant growth and is expanding its supply chain outside of China. Its current headquarters are in Singapore. The business produces its products in Turkey and distributes consumers in Western Europe out of leased and managed facilities there.
Because it employs customised software to monitor production in real-time and uses algorithms to estimate client demand based on previous purchases, app usage, and other criteria, Shein's "on-demand" manufacturing strategy distinguishes it from the competition. This is a major factor in its success.
Shein is anticipated to bring in $ 24 billion in sales this year, increasing its already high valuation of $ 100 billion. Additionally, investors such as Sequoia Capital China and General Atlantic support the business.