Shein, the ultra-fast fashion giant, considers becoming an online marketplace
The world’s most successful retailers, think Amazon, Alibaba and Farfetch, all have one thing in common. They operate a marketplace business.
New reports that Chinese ultra-fast fashion giant Shein is considering a shift in strategy, in order to compete with the even bigger retail fish.
The Wall Street Journal reported it saw a memo sent by Shein to its investors, which said it is considering a move to sell merchandise from third-party brands in addition to its own brand. The Singapore-based company has recently focussed on divesting its operations, opening warehouses in Poland and manufacturing apparel in Turkey.
“The marketplace platform makes available a range of additional merchandise and shipping options, and we expect it to result in increased customer engagement and satisfaction,” the memo said, as published by the Wall Street Journal.
In a report released by Huge Commerce, “The Future of Marketplaces,” commerce as a service will see three quarters of the world’s top social content creators and influencers have their own shoppable stores via marketplaces by 2024. With marketplaces innovating at a rapid pace, rolling out new features and entirely new business lines, a key quality is how they connect with shoppers.
Brands can now reach marketplace consumers with personalised recommendations, rich multimedia product detail pages that cross-sell companion items, content from celebrities and athletes, and seasonal reminders that it’s time to shop for a new pair of boots based on personalised algorithms and order history data.
Shein, with its nearly 45 million online customers, could tap into a revenue stream not yet mastered by a fast fashion retailer.
Article source: Wall Street Journal; Huge Commerce