Fast fashion juggernaut Shein has managed to hook hordes of Gen-Z shoppers in the US despite a key business disadvantage: It has typically offered e-commerce delivery windows of 10 to 15 days that are easily bested by its competitors.
Now, the apparel company founded in China is pushing to get its ultra-low priced merchandise on doorsteps more quickly by establishing distribution centres in the Midwest and California — a significant shift from its practice of shipping individual orders directly to US consumers from overseas.
The logistics investment dials up the pressure Shein has already placed on more established rivals such as H&M and Forever 21, while also threatening the newcomer’s profit margins and introducing fresh risks into its business model.
“The time that it takes to get the products to the consumer in the fast fashion world, where a young consumer — particularly a young female consumer — probably doesn’t want to think two weekends ahead is really important,” said Adam Cochrane, retail and luxury analyst at Deutsche Bank AG.
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Article written by BLOOMBERG
