Research on Tech Companies

Evelyn Zhang

Over decade experiences in  Morgan Stanley, Bank of America Merrill Lynch, Agricultural Bank of China, Lenovo. 
Expertise include research and investment into tech companies of all stages. 
Asset management, private equity, strategic investment, investment banking,  equity research, corporate finance; particular focus on emerging technology.

The Launch of AllyLikes (Backed by Alibaba): Further Competitive Pressures on SHEIN, ZARA, and H&M

Shein Deep Dive:Imitators Perish; Differentiators Flourish

[Blue Lotus E-Commerce Sector Update]: Shein's 3P Market Impacts Temu, Amazon, and Shopify

Private Capital Markets

<ul>
<li>SheIn targets women aged 18-35 with below average income; they are more sensitive to the price (Shein’s products are $9-24) and are less demanding in terms of shipping time (over 2 weeks) and quality; sensitive to fashion trends (3000 new SKU every day, 7-8 days design to shelf time).</li>
<li>The sales growth is driven by the increase in order volume and high users retention rate;</li>
<li>SheIn is adopting the C2M model in which customers interest and feedback directly influence the production.</li>
<li>SheIn uses offline buyers and trawls online influencers to capture fashion trends, then designs products based on the information to create bestseller products.</li>
<li>SheIn has in-depth cooperation with 2,000-3,000 small and medium-sized manufacturers (including 300 core suppliers), 100 fabric suppliers in Guangzhou to establish a fast response supply chain.</li>
<li>SheIn adopts a "small order quick turnaround" production model, that is, each product has only about 100 pieces of initial order, and then put on the market for testing, and feedback, and iterate by launching new products every day</li>
<li>SheIn built its own supplier management system to coordinate long-term cooperative suppliers. SheIn can access detailed production line information from suppliers, including textile type, the personnel status, the current fabric and dye inventory level, production capacity etc.</li>
</ul><ul>
<li>SheIn started online influencer &amp; celebrity marketing in 2011, by providing commissions/exclusive discounts/payments cooperation, now inviting internet celebrities to live broadcast on unboxing, try on, review etc.,</li>
<li>Thanks to the company's brilliant marketing and dominant position, the marketing expense ratio from 2017 to 2019 has decreased YoY to 28.5%, 26.2%, and 17.5%, respectively.</li>
</ul>


SheIn targets women aged 18-35 with below average income; they are more sensitive to the price (Shein’s products are $9-24) and are less demanding in terms of shipping time (over 2 weeks) and quality; sensitive to fashion trends (3000 new SKU every day, 7-8 days design to shelf time).
The sales growth is driven by the increase in order volume and high users retention rate;
SheIn is adopting the C2M model in which customers interest and feedback directly influence the production.
SheIn uses offline buyers and trawls online influencers to capture fashion trends, then designs products based on the information to create bestseller products.
SheIn has in-depth cooperation with 2,000-3,000 small and medium-sized manufacturers (including 300 core suppliers), 100 fabric suppliers in Guangzhou to establish a fast response supply chain.
SheIn adopts a "small order quick turnaround" production model, that is, each product has only about 100 pieces of initial order, and then put on the market for testing, and feedback, and iterate by launching new products every day
SheIn built its own supplier management system to coordinate long-term cooperative suppliers. SheIn can access detailed production line information from suppliers, including textile type, the personnel status, the current fabric and dye inventory level, production capacity etc.

SheIn started online influencer &amp; celebrity marketing in 2011, by providing commissions/exclusive discounts/payments cooperation, now inviting internet celebrities to live broadcast on unboxing, try on, review etc.,
Thanks to the company's brilliant marketing and dominant position, the marketing expense ratio from 2017 to 2019 has decreased YoY to 28.5%, 26.2%, and 17.5%, respectively.


SHEIN Is In- Gen Z’s Own Fast Fashion Revolution