Shein’s sales exceeded $16 billion in the first half of 2022 with a year-on-year growth rate of more than 50%. With the arrival of the peak season, Shein will reach its annual sales target of $30 billion. And it is one year ahead of the original plan.
In the past three years, Shein’s performance has shown explosive growth. In 2020, its GMV exceeded $10 billion for the first time, with an increase of 250%. And in 2021, its GMV reached $20 billion. Among them, the self operated revenue approached $16 billion.
In the second quarter of 2022, Shein’s 6.8 million mobile installations in the United States once again exceeded Amazon’s. The month on month increase was nearly 13%. Although the MAU of Amazon in the second quarter was three times that of Shein, the gap between the two is narrowing. The DAU of Shein in the second quarter has exceeded 30 million (peak 32 million), with an increase of 15%.
Shein has set two core goals this year: to improve the unit price per customer and optimize the profit margin. Many insiders told Deep Digital China that the average unit price of Shein in the global market was $75 in the first half of this year. And the figures in the past three years were $50, $60 and $70 respectively.
On September 1, Temu the overseas business of Pinduoduo, officially opened for test sale. Two companies with a market value of $100 billion are about to face each other.
On the supply side, Pinduoduo recruits all kinds of merchants in the form of 0 Commission, but the merchants have no pricing right. Pinduoduo mainly makes pricing sales, and then settles with the seller at the supply price. This is completely different from the business model of third-party sellers on Amazon and other platforms. In addition, it’s also different from the model of self owned brands of Shein.
Insiders speculate that Pinduoduo will probably adopt crazy buying in the early stage in order to quickly open the market. Take the US market as an example. In the first half of the year, Shein’s customer acquisition cost in the Facebook channel was about $35. Pinduoduo may need 2-3 times the price (or even higher) to pull users to its own platform.
Although the US market is already a red sea, the success of Pinduoduo in the past still makes the outside world look forward to it. In the first half of the year, Pinduoduo’s revenue exceeded 55 billion yuan and its net profit exceeded 15 billion yuan. As a result, it has sufficient strength to test its waters overseas.
Deep digital China believes that the competition between these two giants in overseas markets is great. It will set an example for Chinese brands to open up a new situation in the world.