Marketing Strategy of Shein: Fashion in a cost-effective manner!

Shein Marketing Strtegy

Shein is a new-age Chinese Ecommerce Company, which has come up with a path-breaking marketing strategy that is winning accolades globally.

It focuses on women’s garments and has been celebrating plus-size models, certainly, something very few companies have done so far. In 2020, Shein has had revenues worth 40 billion yuan and expects to touch 100 billion yuan by 2021.

In this article, we will discuss the reasons how the Marketing Strategy of Shein became a success. 

Marketing Strategy of Shein

Be proud of your body

Fashion magazines for a very long time have been obsessed with skinny female models, which are appealing to the eyes. It discriminated against plus-sized women. As a result, the impact was so heavy that most women could never celebrate their bodies, the way they are.

However, As a part of the Marketing Strategy of Shein the company made it a point to be inclusive and diverse in its approach. Additionally, brought plus-size models as a part of their campaign. It stepped aside from the unrealistic beauty standards and made every woman proud of their physical appearance. 

Unlimited options

Shein launches an average of 150, 000 products every year. This is second to none and certainly, the top-end clothing stores find it challenging to bring in so many products. As they are targeting the youth, the company keeps on upgrading various styles and designs and comes up with huge choices every day.

The young generation has been hooked to its products. Therefore those with a high disposable income are buying large volumes, as a result of its heavy discounting strategy. As the volume of sales is rising, the company is increasing its profit margins and beating its rivals. 

Micro-Influencer marketing

One of the unique ideas in the Marketing Strategy of Shein is to use customer reviews as product marketing techniques.

While most companies look for celebrities to promote their products, whereas Shein on the other hand focuses on lesser-known influencers and satisfied customers who have already used their services. Word of mouth has a very strong impact on customers.

Similar to product reviews on eCommerce sites, these young buyers act as influencers and describe the product quality in great detail.  In addition to this, with better connections and easy-going language, these influencers have improved the sales volume and are a prime reason for their growth.

Clearly, winning the social media war is the single most important thing in today’s online retail. Ad campaigns, influencer marketing, and product varieties, all have made Shein a successful name in the global retail market.

Coupon codes

Shein collaborates with online payment companies and banks transacting through which customers get coupon codes. When these coupons are used, they get discounts which encourage bulk buying even further.

Those who subscribe to their premium plans, get advantages like the delivery charges are waived and some products are given at discounts from 20-80%. Also, these coupon codes have been a major reason for the success of the Marketing Strategy of Shein as more mobile users use these to buy products at a faster rate.

Plus-size models

Shein has purposely brought in several plus-sized models for their promotional campaigns. It has been a great decision as women have been freely ordering their products without any hesitation. While other fashion brands focus on limited sizes, Shein on the other hand has gone ahead and is providing options for women irrespective of their body size.

As most companies are looking to break stereotypes about women, Shein has been able to implement it in the true sense. In the US alone, the plus-size market is around $24 billion as of 2020, growing at 4.4% annually. So, needless to say, this is a massive opportunity that Shein used up effectively for their business. 

Testimonials

Shein encourages product reviews on their platforms for potential customers to see and analyze its quality. These customer reviews act as testimonials and work as a catalyst for a bigger sales volume.

Also as a part of the Marketing Strategy of Shein, the company keeps on sharing positive word-of-mouth reviews on their social media accounts. This in turn drives the business at a faster pace and enhances the visibility of the brand. 

 User generated content(UGC)

Shein uses user-generated content for its promotional activities. Blogs, articles, and videos, the idea is to connect with content creators and real-time users to make convincing stories about their products.

This is real, which makes it more relevant to younger consumers. Often, celebrity endorsements, have trust issues, as people know that they are paid to do the promotion.

Whereas, when a user will say the same thing, it certainly has a higher level of reliability. More people will be looking to engage. Highly rated products sell out faster. blogs on newly launched products and their features bring in consumers across all segments.

Pricing

Shein has managed to take control over the two most prominent video platforms, Tiktok and YouTube. It shows videos where customers are happy to find a cheaper product and are happily buying it. It connects with the audience and they feel the urge to buy these products.

The price at which the company sells its products are almost half as compared to Amazon and eBay. Even a person who has very little disposable income would be tempted to get hold of these products. Looking at the Marketing Strategy of Shein, one can surely say that they have conquered the Gen Z mentality very well. 

Conclusion

The Marketing Strategy of Shein has brought in a new dimension in the world of retail business. The way they have projected themselves has surprised analysts as well.

The exponential growth, product varieties, and unapologetic celebration of body positivity have changed the dynamics of the market. Undoubtedly, Shein is still quite an unknown company outside of the US market, however, the organization is focusing on the middle-east and Africa as well for long-term growth. 

The gamifying experience on the Shein portals and countdown timers for the season sale discounts are an absolute delight for shoppers. They always felt that they are getting things at a lesser price, and the transactions happen fast. With a better customer retention rate and social connection, Shein is here to rule the market for a long time now.

Vipul Agarwal
My drive comes from my passion for marketing. Moreover, I love to assist others and help them with all my might in their goal fulfillment. My educational journey in the fields of engineering and management has prepared me to understand the nuances of this industry and stay up to date with all the latest advancements through continued learning and development. I believe a healthy mind resides in a healthy body. So I utilize my leisure time in exercising and eating healthy. I indulge in various help books to understand the world we live in, a little better.