SHEIN opens permanent space in Tokyo

Chinese fashion eCommerce firm SHEIN has plans on opening a permanent space which aims to support its digital brand with a physical presence. A SHEIN spokesperson has told Reuters that this premises is the fast fashion company’s first physical event space globally. This comes after the brand opened its first pop-up store in Japan earlier this year, and also opened a temporary store was also opened in Osaka in October.

With the physical premises, customers now can browse clothing in-person and also use QR codes that give them the option to make purchases on its digital platform. The space also may act as a stage for fashion shows and designer events if necessary, said the spokesperson.

Targetted at the Gen Z population, Shein is known to also platforms such as Instagram and Tiktok and working with influencers to promote its low cost styles.

Despite all of the controversy faced by the platform involving its sustainability initiatives, and copying of designs, the Nanjing-based app has been gaining traction in international markets such as US and Europe. According to an article on FT, the platform was valued at just over US$100bn at its last fundraising round in April.

Meanwhile in an attempt to dispel much of the negativity around the platform, SHEIN recently launched SHEIN Exchange - an integrated online peer-to-peer resale destination to buy and sell previously owned SHEIN products. The objective of the destination is to satisfy community demand by providing a one-stop destination for customers to become active participants in circularity and promote the benefits of purchasing pre-owned clothing over purchasing new items.

Alongside the news, it also announced plans to reduce overall emissions across its entire value chain by 25% by 2030. The fast fashion firm also planned to commit up to US$7.6 million in programmatic funding to Apparel Impact Institute - a nonprofit organisation dedicated to decarbonising and modernising the fashion industry supply chain, to build the roadmap for emissions reduction within SHEIN's supply chain.

In recent times, many online-first brands are seeing the benefits to setting up its retail stores. In Singapore for example, Love,Bonito, an online first retailer has seen a significant expansion of its retail business. Currently, it is also taking its retail stores to international markets such as Hong Kong and the US. Similarly, local online first jewellery store By Invite Only, also opened up its retail stores across Singapore amidst the pandemic.

According to industry players, having physical retail stores not only add credibility to online brands but also given the downward rental market amidst COVID-19, the barrier for entries for local brands were also lowered.

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