The Rise of Shein and Tumu in the Fashion Industry

Shein and Tumu, Chinese e-commerce companies, have rapidly gained dominance in the fashion scene, surpassing well-established brands. Shein, known for its fast fashion, releases over a thousand new items per day, meeting consumer demand and synthesizing trend data. Tumu operates as a marketplace, providing a wide range of home goods and has over 6,000 merchants. Both companies offer exceptionally low prices, attracting customers with limited budgets. They heavily rely on massive advertising campaigns on platforms like Facebook and TikTok to drive brand awareness and reach. Their digital strategies focus on image-based marketing with minimal product descriptions. These companies also prioritize customer loyalty, utilizing vast quantities of customer reviews, offering various upsells, downsells, and cross-sells, and implementing a robust rewards program. This approach, alongside their immersive e-commerce experiences and recommendation algorithms, helps foster a strong sense of community, engagement, and addictiveness, keeping customers loyal and hooked on their platforms.