Question
Case Study 1: SHEIN may not be a household name like e-commerce giants, Alibaba, Taobao, Shoppee or Lazada, but its mystery-shrouded low profile is matched
Case Study 1:
SHEIN may not be a household name like e-commerce giants, Alibaba, Taobao, Shoppee or Lazada, but its mystery-shrouded low profile is matched only by a single-minded ambition to become a global fast-fashion retailer.
Founded in 2008, Nanjing-based SHEIN is aimed squarely at Gen Z, luring young shoppers via Instagram and TikTok influencers and a barrage of discount codes for low-cost styles with a dress costing just half that of a Zara equivalent uploading new products online in their hundreds every week.
The story really starts at the beginning of 2012, when notoriously hard-working founder and CEO Chris Xu (sometimes known as Yangtian Xu) - an American-born graduate of Washington University - gave up his wedding dress business to acquire the domain Sheinside.com. Initially selling womens clothing, in 2015 he renamed the company SHEIN, focused on overseas markets, and began snapping up fashion rivals.
SHEIN is obsessed with identifying hot searches and trends in different countries to predict the colours, fabrics, and styles that will be popular, with an even faster cycle than Zara. It then promotes heavily with Instagram- and Weibo-friendly imagery, for accessible and attainable fashions across all its social platforms.
Case Study 2:
With a dominant presence in Southeast Asia, Love, Bonito is looking to expand into key markets such as Hong Kong, Japan, the Philippines, and the United States. This includes plans to boost omnichannel offerings in these markets, with plans to open physical stores in Japan and Hong Kong.
Part of the brands success is its capability to provide consumers with a seamless experience on their platform. Love, Bonito continues to invest in emerging technologies and is now focused on perfecting the omnichannel experience for their customers.
Omnichannel no longer means just having a separate online and offline channel for different segments of customers. We believe that the future of retail is not just online or offline, but an integration of both. Customers do not only expect convenience but also seek connection and being part of a community, said Joan Yeoh, Country Director at Love, Bonito.
For Yeoh, the fashion industry is quite different compared to other industries as some customers still prefer physical stores to try on and feel new clothes. As such, she believes that while brands look to e-commerce, physical and social touchpoints should not be neglected.
At the same time, the brand also recognizes the importance of an in-store experience in e-Commerce for customers who may not be able to get to the stores. For example, Love, Bonito live streams on its social media pages to help give customers a better idea of what the clothes look like when tried on real women and in movement.
This question is asking you to discuss the e-commerce practices. In that pursuit, answer the following:
Successful Singaporean fast fashion online retailer Love Bonito has moved into omni-channel retailing, setting up stores in a number of shopping malls in Singapore and with plans to open physical stores in Japan and Hong Kong.
Therefore, SHEIN should move into omni channel retailing in Asia, like Love Bonito.
Do you agree? Discuss to support your position.
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