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Shein’s Rise Shows That Amazon Isn’t Unassailable

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Over the past twelve months, the Chinese online retailer Shein has been recording some impressive achievements. Back in October 2020, Euromonitor International declared Shein to be the world’s largest online-only fashion retailer. In May, App Annie and SensorTower shared data showing that Shein’s app had overtaken Amazon in downloads on Google Play and Apple App Store worldwide. While both apps have settled around parity in the following months, it’s hard not to recognise that Shein has established itself as a global retail powerhouse.

We have seen impressive figures from Chinese retailers before. However, many feel that Shein has the potential for a greater international reach than any that have come before, making the comparisons to Amazon all the more fitting.

Although Shein’s focus has primarily been on fast fashion, the platform does stock a broad range of products in a number of different categories. What’s particularly interesting are the strategies that have driven the platform’s success in recent years. Their extensive in-house data-mining operation is perhaps unsurprising, given that their CEO has an extensive SEO background. Still, over time it has proven able to quickly identify trending fashion search terms and popular competitor products. This data allows the company to be incredibly reactive in bringing new products to market.

Proactively, Shein has shown an enviable ability to use social media and influencers to reach younger consumers. Its profile on TikTok alone is above and beyond what most international brands could only dream of, and this has allowed it to enjoy huge popularity among an audience that other large platforms often struggle to reach.

By focusing on areas where Amazon has traditionally been weaker (fashion, trends, responsiveness and social media), Shein has built an impressive global online brand that seems set to go from strength to strength. Only time will tell if others can use their example to find new ways to go up against the retail giant.

Blog & Research Digest – September 2021

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With our Blog and Research Digest, the Digishare team provide a curated roundup of online retail news. Along the way, we’ll pick the most interesting stories from the worlds of technology, social media, marketing and more, allowing you to see everything at a glance.

Retail News and Trends

Online retail sales growth subdued in August, but there is room for hope
https://internetretailing.net/industry/online-retail-sales-growth-subdued-in-august-but-there-is-room-for-hope-23680
“The latest IMRG Capgemini Online Retail Index, which tracks the online sales performance of over 200 retailers, finds that August’s performance was still well below the 6- (+2.25%) and 12-month (+21.37%) averages, but above the 3-month average of -10.53%.”

Shoppers spent less online in August than last year – but more than before the pandemic: BRC
https://internetretailing.net/industry/shoppers-spent-less-online-in-august-than-last-year–but-more-than-before-the-pandemic-brc-23665
“At the same time, 38.3% of sales took place online. That’s down from 42% a year earlier – but 9.3 percentage points higher than the 29% of sales that took place online in 2019.”

UK shoppers spent a record £10bn online in July: Adobe
https://internetretailing.net/industry/uk-shoppers-spent-a-record-10bn-online-in-july-adobe-23593
“So far this year, the study suggests, UK shoppers have spent £64.9bn – up by 18% on the same period last year and by 56% on the same time in 2019.”

Delta variant a negative impact on consumer confidence
https://www.retailcustomerexperience.com/news/delta-variant-a-negative-impact-on-consumer-confidence/
“The survey reported a 25% increase, since July, in the number of consumers admitting they are “very or somewhat worried” about the coronavirus, from 51% to 64%, the highest one-month jump recorded since March, 2020.”

Consumers not changing shopping habits in post-pandemic retail
https://www.retailcustomerexperience.com/news/consumers-not-changing-shopping-habits-in-post-pandemic-retail/
“In fact, just about 28% expect to shop even more online this holiday season, according to a Qubit survey that polled 1,500 U.S. and U.K. consumers in July, according to a press release.”

Shopping app use grows 30% in 2021 as shoppers continue to use mobile even as stores open
https://internetretailing.net/mobile-theme/shopping-app-use-grows-30-in-2021-as-shoppers-continue-to-use-mobile-even-as-stores-open-23653
“Regionally, APAC experienced the most significant growth in time spent (54%), followed by the Americas (40%) and Europe and the Middle East (EMEA) (38%).”

UK sees slump in EU and international online purchases, but luxury bucks the trend
https://internetretailing.net/international/uk-sees-slump-in-eu-and-international-online-purchases-but-luxury-bucks-the-trend-23674
“EU issues were considered so bad that UK consumers said they would rather shop as far as China (42%) and the US (30%) than closer neighbours Germany (10%), Italy (7%), or Spain (6%). This is in stark contrast to EU shoppers, with 56% of European consumers saying they like to shop internationally – just 5% less than in 2020.”

Half of shoppers disappointed with Black Friday sales, retailers need to rewrite the rules on discounting, study warns
https://internetretailing.net/peak/half-of-shoppers-disappointed-with-black-friday-sales-retailers-need-to-rewrite-the-rules-on-discounting-study-warns-23707
“With peak just around the corner, a new study finds that more than half of UK consumers feel that Black Friday, Cyber Monday (BFCM) discounts are never as good as they expect them to be and 58% report that the products they really want are never discounted.”

Online reviews playing role in purchase decisions
https://www.retailcustomerexperience.com/news/online-reviews-playing-role-in-purchase-decisions/
“More than half, 54%, of U.S. shoppers read online reviews for everything they buy prior to purchase and 30% of male shoppers believe good reviews impact their purchase decision while quite a few less females, 22%, believe customer feedback influences their choice.”

Clothing, groceries and vehicles most difficult to buy online: study
https://internetretailing.net/customer/clothing-groceries-and-vehicles-most-difficult-to-buy-online-study-23692
“Asked why these items were harder to buy, 25% said they’d had difficulty browsing online, 21% said product specifications were confusing, and the same proportion said the problem was not being asked to ask a sales assistant for advice. Almost two thirds (61%) missed being able to touch or test products, while understanding how big products were was an issue for 45%.”

RESEARCH Marketplaces clear winner as 51% of post-pandemic retail set to take place online online
https://internetretailing.net/marketplaces/research-marketplaces-clear-winner-as-51-of-post-pandemic-retail-set-to-take-place-online-23510
“72% of global shoppers say that online shopping saved them in 2020 and 73% see ecommerce as continuing to be important to them in 2021 and beyond, according to a survey of 28,000 shoppers in 17 countires as part of Wunderman Thompson Commerce’s Future Shopper Report 2021.”

Amazon UK sellers now account of 5.5% of country’s entire retail spend
https://www.chargedretail.co.uk/2021/08/19/amazon-uk-sellers-now-account-of-5-5-of-countrys-entire-retail-spend/
“Just 13,500 UK Amazon sellers now make up 5.5 per cent of the country’s total retail sales making nearly £2.5 billion a month, according to new research from Thrasio and SmartScout.”

Shein becomes the largest online-only retailer in the world
https://www.retailgazette.co.uk/blog/2021/08/shein-becomes-the-largest-online-only-retailer-in-the-world/
“Shein offers clothing for women in sizes ranging from XS to 5XL, as well as menswear, clothes for kids and, makeup, tech and accessories for pets and the home.”

Shein is now being downloaded twice as much as Amazon
https://www.chargedretail.co.uk/2021/09/09/shein-is-now-being-downloaded-twice-as-much-as-amazon/
“The ultra-fast fashion brand, understood to also be the world’s fastest growing ecommerce company, was downloaded a total of 17.52 million times across both the Google Play Store and Apple App Store in July this year. According to fresh data from onlinecasinomaxi.de, this dwarfed Amazon’s 7.46 million global downloads in the same period.”

No more knock-offs: China threatens to ban retailers selling fake goods
https://www.chargedretail.co.uk/2021/09/01/no-more-knock-offs-china-threatens-to-ban-retailers-selling-fake-goods/
“Under the new proposals the SAMR has threatened to revoke the online business licences, required to sell anything online in China, of retailers found to be in breach of violations of intellectual property laws.”

 

Amazon

Shenzhen is paying online businesses to sell somewhere besides Amazon
https://qz.com/2047839/shenzhen-is-helping-e-comm-companies-find-alternatives-to-amazon/
” Since then, Amazon has shuttered at least 50,000 stores operated by Chinese merchants, according to a Shenzhen-based trade group, for behaviors such as soliciting fake reviews and offering gift cards to reviewers, the latter being a normal practice in China but one that violates Amazon’s policies.”

Why Walmart’s e-commerce growth is cooling off while Amazon is still on fire
https://qz.com/2048654/walmarts-e-commerce-growth-cools-while-amazon-is-still-on-fire/
“Last year, Walmart’s US e-commerce sales grew 97% (pdf) in the second quarter compared to the same period in 2019, the fastest rate on record for the world’s largest retailer. But the breakneck growth has now slowed to a crawl.”

With new stores, Amazon is trying to take over as much of retail as possible
https://qz.com/2049842/why-is-amazon-opening-shops-that-sound-like-department-stores/
“Amazon has been investing in expanding its physical presence in urban areas, notably pushing into groceries with its purchase of Whole Foods in 2017.”

 

Opinion

Ethical consumption can’t be the burden of shoppers alone
https://qz.com/2046991/ethical-consumption-cant-be-the-burden-of-shoppers-alone/
“It can be hard for consumers to gather all the information needed to make fully informed decisions, and even supposedly ethical shoppers don’t always make ethics the top priority in their purchases.”

Amazon’s International Growth Accelerates

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It is with an almost wistful inevitability that we bring news that Amazon’s international growth has blown past that of a different entity. But, in a novel twist, the competing entity is Amazon’s own US retail business.

Despite having a much longer-established business in the US than any other market, Amazon has never struggled to find growth at home. Traditionally, American sales have outpaced all its international iterations combined. While it’s still true that the value of international sales is still less than half of those from the US, international growth has surged ahead. As reported by Quartz, Amazon is experiencing 60% growth overseas, compared to just 40% at home.

The reasons for this are many and varied. After a long time of investing heavily in key markets, Amazon has taken a more fearless approach to opening new marketplaces in recent years. The established European markets turned enthusiastically to Amazon’s services during strict lockdown measures, while heavy investment in India is starting to show results.

Amazon Preps Prime Day 2021 for Q2

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Prime Day in 2020 was a strange affair. Despite the COVID-19 pandemic proving to be especially lucrative for the retailer, the logistical strain of the virus caused Amazon to push the event back from its usual July slot to much later in the year. When the event finally went ahead in October, it bunched up awkwardly against other shopping events such as Black Friday and the run-up to the holiday season.

For 2021, Amazon is trying to do things differently. According to a report from CNBC, Prime day in the US is scheduled for sometime in June, a period which has traditionally been slower for retailers.

While Amazon is once again trying to space its shopping events throughout the year, the report does suggest that a secondary reason for the move is to prevent unfavourable earnings comparison with Amazon’s bumper pandemic year. During the lockdown months of last spring, Amazon’s revenues soared. By moving Prime Day a little earlier in the year, Amazon may be hoping that there isn’t as much of a gulf between last years Q2 results and those for 2021.

As with the reports around Prime Day last year, the focus is primarily on the US date. Prime Day has previously launched with staggered timing in different countries, so we will keep you updated as these dates are confirmed in the coming months.

Blog and Research Digest — Week 19, 2021

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With our Blog and Research Digest, the Digishare team provide a curated roundup of online retail news. Along the way, we’ll pick the most interesting stories from the worlds of technology, social media, marketing and more, allowing you to see everything at a glance.

Retail News and Trends

Online grocery growth slows as shoppers spend £8bn in-store at UK supermarkets
https://internetretailing.net/industry/online-grocery-growth-slows-as-shoppers-spend-8bn-in-store-at-uk-supermarkets-23119
“Online grocery has experienced supercharged growth in the last 12 months, with sales growth remaining above 70% since the start of the UK’s pandemic in March 2020.”

UK a leader in the 2020 shift online – while studies suggest shoppers want to buy more in-store, but as yet are not returning to shops post-Covid 19 lockdown
https://internetretailing.net/location/uk-a-leader-in-the-2020-shift-online–while-studies-suggest-shoppers-want-to-buy-more-in-store-but-as-yet-are-not-returning-to-shops-post-covid-19-lockdown-23116
“Almost a quarter of UK retail sales took place online as shops closed for Covid-19 lockdowns, new figures suggest.!

UK ecommerce outpaces global average as shoppers spend faster than ever
https://internetretailing.net/customer/uk-ecommerce-outpaces-global-average-as-shoppers-spend-faster-than-ever-23090
“The UK’s ecommerce spending in Q1 grew by 54% YoY, reaching £28bn in spend. This is considerably faster than the global average – for comparison, US online sales grew 39% YoY, and the global average growth figure was 38%.”

Shoppers set to carry on buying online– and to spend more on retail purchases: research
https://internetretailing.net/industry/shoppers-set-to-carry-on-buying-online-and-to-spend-more-on-retail-purchases-research-23073
“Customer experience specialist MullenLowe Profero questioned 3,000 UK adults via Censuswide and found than more than half (56%) of online shoppers expect to buy online as much as they are now – and 41% say they have bought online more regularly during the Covid-19 lockdowns and restrictions.”

European eCommerce revenues jump 30% to $465bn in 2021
https://internetretailing.net/international/european-ecommerce-revenues-jump-30-to-465bn-in-2021-23016
“Even before the pandemic, the European eCommerce market has witnessed impressive growth. In 2018, revenues grew by $24.8bn YoY and hit $320.6bn, revealed the Statista survey. By the end of the following year, this figure jumped by another $33.6bn reaching $354.1bn.”

Two-thirds of UK shoppers value ethics and sustainability in retailers, reshaping their post-pandemic habits
https://internetretailing.net/sustainability/two-thirds-of-uk-shoppers-value-ethics-and-sustainability-in-retailers-reshaping-their-post-pandemic-habits-23019
“The majority (52%) also said that they are now more likely to shop with retailers that have ethical suppliers or supply chains.”

Online shoppers leave £100 of goods a month in “fantasy baskets” – survey
https://www.retailgazette.co.uk/blog/2021/05/online-shoppers-leave-100-of-goods-a-month-in-fantasy-baskets-survey/
“Significant delivery costs, the desire to “window shop” rather than make a purchase and lengthy authentication processes were key drivers of payment dropouts, Barclaycard Payments said. Getting distracted by other online shopping and forgetting what baskets contain were other key reasons.”

Shopify says vaccinations haven’t slowed down online shopping
https://qz.com/2002776/shopify-says-vaccinations-havent-slowed-down-online-shopping/
“More Americans are getting vaccinated by the day, and many, emboldened by loosening restrictions around mask use and warming weather in the US, are finally heading back to stores and malls after a year of doing much of their shopping online.”

Study: Consumer digital mindset here to stay
https://www.retailcustomerexperience.com/news/study-consumer-digital-mindset-here-to-stay/
“A majority of consumer (81%) will maintain and may even increase digital usage once COVID-19 restrictions are gone, according to a FullStory study.”

Consumer spend won’t change much this year, claims research
https://www.retailcustomerexperience.com/news/consumer-spend-wont-change-much-this-year-claims-research/
“More than half of U.S. consumers (60%) expect a return to normality within the year and 56% are optimistic about the year ahead.”

Economy surges as consumers spend big
https://www.retailcustomerexperience.com/news/economy-surges-as-consumers-spend-big/
“The U.S gross domestic product, a measurement of total goods and services produced, hit 6.4% in the first quarter of the year, according to a NBC report citing estimates released from the Commerce Department. Economists had predicted an increase of 6.5%.”

Survey reveals how COVID-19 impacted 2020 holiday shopping season
https://www.retailcustomerexperience.com/news/survey-reveals-how-covid-19-impacted-2020-holiday-shopping-season/
“83% purchased online during the 2020 holiday season. For consumers who spent more than $500 on holiday gifts, that number jumped to a 94%. More than half of consumers who purchased gifts online said they visited a retail store website.”

Walmart online sales on a boom path, reveals research data
https://www.retailcustomerexperience.com/news/walmart-online-sales-on-a-boom-path-reveals-research-data/
“Walmart’s share of U.S. online sales will increase from 6.7% last year to 7.1% this year, according to data from ComprarAcciones.com.”

Amazon

Amazon moves Prime Day to Q2
https://www.retailcustomerexperience.com/news/amazon-moves-prime-day-to-q/
“The one fact Amazon has confirmed is that the deals extravaganza event will happen in the second quarter, according to a CNBC report.”

Amazon says its Prime membership has now topped more than 200m – and focuses on groceries and delivery as first quarter sales grow by 44%
https://internetretailing.net/strategy-and-innovation/amazon-says-its-prime-membership-has-now-topped-more-than-200m–and-focuses-on-groceries-and-delivery-as-first-quarter-sales-grow-by-44-23099
“Amazon says more than 200m people are now paid-up members of its Amazon Prime subscription scheme. Its next Prime Day event, for members of the scheme, is now set to take place later this quarter.”

Prime has never been more important to Amazon
https://qz.com/2004369/the-pandemic-made-prime-even-more-valuable-to-amazon/
“It took Amazon 13 years to reach its first 100 million subscribers to Prime, the company’s benefits-loaded membership program. It took just three years to add its next 100 million, as founder Jeff Bezos revealed last month in his final letter to shareholders as Amazon’s CEO.”

Amazon’s growth overseas has blown past its growth in the US
https://qz.com/2003497/amazons-growth-overseas-has-blown-past-its-growth-in-the-us/
“In the latest quarter Amazon’s international sales surged 60% compared to the same time last year, far outpacing the 40% growth it saw in North America and marking Amazon’s second quarter in a row of higher growth overseas.”

32% of UK Amazon customers feel “guilty” for shopping with giant
https://www.chargedretail.co.uk/2021/05/10/32-of-uk-amazon-customer-feel-guilty-for-shopping-with-giant/
“Amazon shoppers in the UK say they feel “guilt” and “buyers remorse” after shopping with the retail giant with many stating they want to cut down on purchases.”

Amazon enters “golden age” as Q1 sales smash estimates rising 44%
https://www.chargedretail.co.uk/2021/04/30/amazon-enters-golden-age-as-q1-sales-smash-estimates-rising-44/
“Over its first quarter Amazon saw net sales top $108.5 billion, coming comfortably above Wall Street estimates of $104.5 billion, while profit after tax more than tripled on the same period last year jumping from $2.5 billion to $8.1 billion, trouncing expectations of just $5 billion.”

Amazon poised to overtake Walmart as largest retailer by 2025: report
https://www.retaildive.com/news/amazon-poised-to-overtake-walmart-as-largest-retailer-by-2025-report/599437/
“As e-commerce expands at a blazing clip, Amazon is on track to pass Walmart as the largest U.S. retailer by 2025, according to Retail Insight, the research arm of Edge by Ascential.”

Amazon best in online experience, claims research
https://www.retailcustomerexperience.com/news/amazon-best-in-online-experience-claims-research/
“More than half, 55%, of consumers ranked the e-commerce giant as being best, with Walmart landing in second as cited by 11% of U.S. consumers. The third spot belongs to Target, Best Buy and eBay, all mentioned by less than 4% of those surveyed, according to a press release.”

Opinion

3 critical website updates for better UX
https://www.retailcustomerexperience.com/blogs/3-critical-website-updates-for-better-ux/
“Collectively, product detail pages (PDPs) are arguably one of the most critical aspects of your e-commerce website. An optimized PDP uses a combination of high quality product photography; compelling descriptions, specifications, and details; and interactive elements to turn browsers into buyers and drive revenue.”

Blog and Research Digest — Week 12, 2021

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Retail News and Trends

Largest ever share of sales takes place online in locked-down February, while in-store sales fall
https://internetretailing.net/covid-19/largest-ever-share-of-sales-takes-place-online-in-locked-down-february-while-in-store-sales-fall-22830
“The British Retail Consortium (BRC) found that 60.6% of UK retail sales took place online last month. That’s a higher proportion than during the previous two lockdowns.”

Pandemic spurring spike in e-commerce activity
https://www.retailcustomerexperience.com/news/pandemic-spurring-spike-in-e-commerce-activity/
“he global e-commerce market will hit 3.8 billion users this year, a 10% spike compared to 2020, and the prime reason is the ongoing COVID-19 pandemic, according to data from Finaria.it.”

E-commerce spending could reach $1 trillion in 2022: Adobe
https://www.retaildive.com/news/e-commerce-spending-could-reach-1-trillion-in-2022-adobe/596864/
“E-commerce spending in 2021 is expected to grow between $850 billion and $930 billion and reach $1 trillion in 2022, Adobe’s report said.”

UK trade falls dramatically since the end of the Brexit transition period: the ecommerce perspective
https://internetretailing.net/international/uk-trade-falls-dramatically-since-the-end-of-the-brexit-transition-period-the-ecommerce-perspective-22856
“Total UK trade – excluding precious metals – saw its largest monthly fall since records began in January – of 19.3%, or £5.3bn, according to ONS figures.”

Amazon beats out Walmart for top retailer title
https://www.retailcustomerexperience.com/news/amazon-beats-out-walmart-for-top-retailer-title/
“It gained the title due to the insurgence of online shopping during the COVID-19 pandemic, and Wells Fargo estimates Amazon’s U.S. apparel sales spiked 15% in 2020 alone — about 20% to 25% more than Walmart, according to a CNBC report.”

Amazon drivers call for fewer daily deliveries
https://www.retailgazette.co.uk/blog/2021/03/amazon-drivers-call-for-fewer-daily-deliveries/
“New petition calls on Amazon to lower the number of daily deliveries amid claims that drivers are being overworked.”

Mobile push leads digital marketing as favorite strategy
https://www.retailcustomerexperience.com/news/mobile-push-leads-digital-marketing-as-favorite-strategy/
“When it comes to digital marketing there’s been overall growth but mobile push notifications are the most widely adopted, with the number of pushes jumping by 78% in the past year, according to Emarsys data.”

Opinion

Will consumers ditch online shopping once lockdown ends?
https://www.retailgazette.co.uk/blog/2021/03/will-consumers-ditch-online-shopping-once-lockdown-ends/
“With non-essential retailers across the UK reopening at various dates from next month and an end to all Covid-19 restrictions in sight by June, online players may feel at threat as shoppers return to the high street. How can online retailers remain ahead as things return to “normal” for the first time in over a year?”

Emphasizing empathy: How retail and e-commerce brands can provide the right CX at the right moment
https://www.retailcustomerexperience.com/blogs/emphasizing-empathy-how-retail-and-e-commerce-brands-can-provide-the-right-cx-at-the-right-moment/
“With the pandemic, more people than ever are shopping online. This has only heightened the need for brands to respond quickly and react appropriately, and therefore, maintaining empathy and emotional intelligence in digital experiences and communications is critical.”