23.8 million times! SHEIN becomes the most downloaded app in Brazil

Chinese e-commerce companies such as Shopee and Aliexpress have already gained a certain degree of popularity overseas. Now, fashion company SHEIN has also "made a name for itself" abroad and started to change the status quo of the clothing industry.

According to data released by Goldman Sachs, SHEIN is the most downloaded fashion platform app in Brazil in 2021, reaching 23.8 million times. This download volume is three times that of Lojas Renner, the largest local department store , and is also ahead of more popular local companies such as C&A , Marisa and Arezzo .

“SHEIN is rapidly expanding in Brazil, even though it is still a pure cross-border e-commerce operation,” Goldman Sachs said in a report.

Despite SHEIN's growing scale in Brazil, according to Goldman Sachs, "Although we know that SHEIN's disruptive business model may pose risks to the participation and profitability of existing companies. However , large companies such as Lojas Renner and Arezzo will not face direct significant risks. On the contrary, the impact on small retailers will be greater. "

According to statistics, 21.1% of Brazilian consumers prefer to buy electronic products and accessories, including headphones, sound bars, TV sticks, graphics cards, etc., on Chinese e-commerce platforms such as SHEIN; clothing ranks second, accounting for 18.1%; and third is cosmetics, perfumes and other beauty products, accounting for 11.1%.

As for the reasons why Brazilian consumers choose to buy on SHEIN, 54.7% believe that the products on the platform are cheaper; 18.6% say that they can buy products on the platform that cannot be found on other Brazilian platforms; and 13.6% are attracted by the platform's promotional activities.

In addition to Brazil, SHEIN has been exported to more than 220 countries and has achieved great success, especially with high popularity among Generation Z consumers. SHEIN's success is also due to its digital nature, with a strong presence on TikTok, active participation of digital influencers, and affordable prices.

As of now, SHEIN’s number of fans on social media such as Instagram, TikTok and Facebook has reached nearly 300 million, and its revenue has achieved 100% growth for eight consecutive years.

Analysts pointed out: "SHEIN works with more than 5,000 factories, which creates a very competitive environment among its suppliers, which is beneficial to its bargaining power. And China's labor force also enhances its competitiveness."

SHEIN has invested a lot of energy in data analysis, using its proprietary algorithms to grasp the interests and fashion preferences of Internet consumers. At the same time, it also has a large amount of user behavior data as support in the background, which can be used to optimize and adjust the marketing direction.

However, according to professionals, SHEIN also has a weak link, that is, although the production batch is small, the product is not sustainable. This is not in line with the future development direction of clothing. Therefore, this is also an issue that SHEIN needs to pay attention to and improve in the future development process.

SHEIN

Brazil