Among the changes that the coronavirus pandemic brought about were increased online shopping and the increased use of mobile devices to make purchases. And the winners were the companies whose strategy initially focused in this direction. Among them is a company operating in the fast fashion segment with Chinese horses, Shein, which has shown rapid growth, including the U.S. market, where she managed to bypass giants such as H & M and Zara.
According to a June report from Earnest Research, amid a surge in pandemic e-commerce spending, Shein became the largest fast-fashion retailer in the U.S., posting 160 percent growth. As of June 16, the company accounted for 28% of sales, surpassing H&M (20% share), Zara (11%), Forever 21 (10%), and Fashion Nova (8%). By comparison, in 2021, Shein’s share of the fast fashion industry’s total sales was 13%. Shein now has more app downloads in the U.S. than Amazon.
According to an Earnest Research report, the only other fast fashion company besides Shein to show market share growth between January and mid-June was Zara.
Overall, the fast fashion market is growing – according to the same Earnest Research report, from January 2021 to mid-June, the U.S. market rose 15 percent. Consumers are tired of home and sportswear, no matter how comfortable and practical it is, and want to dress nicely again. But some experts predict that this growth will soon end and that the decline is not far off. And the main reason for this is called environmental issues. More and more consumers realize how severe and irreparable damage to the environment is caused by fast fashion.
According to an April report by UBS, revenues at fast-fashion retailers could fall 10-30 percent over the next five to 10 years. And many companies have already begun to rethink their operating processes and schedules for new apparel in the expectation of becoming more environmentally friendly.
But what is sure to grow is the e-commerce market. Sensor Tower Store Intelligence estimates that consumers downloaded mobile shopping apps nearly 2.8 million times during Black Friday 2020, an 8% increase over the previous year. Meanwhile, Walmart, Amazon, and Shop apps were among the top three most downloaded.
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