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58  RutgersBusinessReview Spring2024

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Sheinvs.Uniqlo:

WilltheWinnerTakeitAll?



RohitKumar

IndianInstituteofManagementRanchi,India



ShubhMajumdarr

IndianInstituteofManagementRanchi,India



Abstract



Alothaschangedinthebusinessofmakingfashionableclothesduringthelast

two centuries. The world has witnessed a handfulof fast fashion companies

capturing majority of the market share

 and continuously winning, some of

whomareasyoungasfifteenyearsold.Thishasbeenmadepossibleduetothe

way these companies have designed and deployed their business strategy,

especiallythechoicesarounddifferentaspectsoftheirbusinessmodel.Butwill

thewinnertakeitallapplicableinthefast‐fashion business?Usingsecondary

datafromoversevendecades andadoptingthebusinessmodelframework,we

compare and contrast the strategies of the two fastest‐growing fashion

retailersintheworldtoday.



Introduction

Thebusinessoftellingcustomerswhatkindofclotheswouldsuitthem

datesbackabouttwocenturies.Itwasin1826whenCharlesFrederick,one

ofthefirstfashiondesignersintheworld,setuphisfashionhouseinParis.



Duringthisperiod,anopportunitywasprovidedtothecustomersto“make

to order” designer dresses and made Paris the “Fashion Capital of the

WesternWorld.”

Alothaschangedoverthelasttwocenturies.Forexample,

countries like Spain, Sweden, the US, Japan, and China have become the

majorsuppliersoffastfashiongarmentsacrosstheworldandthecompanies

born in these countries i.e., Zara, H&M, Gap, Fast Retailing (Uniqlo), and

Shien respectively have captured the majority market share and dominate

themarketplace.

Theincreasedfocusonexperiences,lessinfluencer‐driven

consumption,sustainability, andadoptionof technologyincluding AIhave

Sheinvs.Uniqlo 

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RutgersBusinessReview Vol.9,No.1 59

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alsobeenthekeytrendsanddriversforgrowthandprofitability.

4,5

Thereis

aracetobethemarketleaderandthetwocompaniesthathavebeenmaking

newsrecentlyare Shein fromChinaandUniqlofrom Japan.Inthis article,

wetakeadeepdivetostudythesetwocompaniesfromastrategicpositioning

andbusinessmodelstandpoint.Weraiseaninterestingquestionaboutwho

iswinningandwhy.Whatarethekeycomponentsoftheirbusinessmodel

triangle? In what ways the business models of these two companies are

different?Finally, we raisethequestion‐willthewinnertakesitall inthe

fast‐fashionbusiness?



 WhatisaWinner‐Take‐AllMarket?

 Awinner‐take‐allmarketisaphenomenonwhereasmallnumberof

companiestendtodominatetheindustry.Thecoreprincipleisthattheone

whowinsgetsitallandthattooattheexpenseofthelosers.

Awinner‐take‐

allmarketisalsoseenasazero‐sumgame.

Thisgameisevidentinathletics.

For example, an Olympic gold medalist takes away all the fame and

recognitionevenifsheisjustmicrosecondsaheadofherclosestcompetitor.

Similarly,inpolitics,thewinningpartydecideswhomtoselectandrejectin

local bodies, and most of the time the opposition party has no say. In the

business world, this phenomenon is quite frequent and evident when one

company receives the majority of available profits in a given market (for

example, companies like Apple, Google, Amazon, Walmart, Facebook,

Microsoft, etc.). Under the winner‐take‐all market economy, there is an

unequal distribution of resources and the winning company gain

extraordinary power to influence outcomes and has market control.

 Top

performers tend to get exponential payoff and with the newer technology,

they are able to leverage better and create a feedback  loop that reinforces

theirdominanceleadingtowhatispopularlyknownasthe“Mattheweffect”

(therichgetricherandthepoorgetpoorer).TheMattheweffectisderived

fromaverseintheNewTestament(Matthew25:29)thattranslateto–“those

who are successful are most likely to be given the special opportunities that

leadtofurthersuccess,andthosewhoaren’tsuccessfularemostlikelytobe

deprivedofthem.”Thisisfoundtobetruenotonlyforindividualswherethere

isevidenceofaccumulativeadvantagebutalsoforfirms,whoformulateand

executestrategiestowinandtobesuccessful.

9,10

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

TheGlobalFashionIndustryanditsValueChain

The global fashion industry has progressed from the traditional four

seasons of the year: summer, spring, winter, and fall, to having fifty‐two

"micro‐seasons"oronenew"collection"everyweek.

Thistransformationis

duetomultiplereasons.Forexample,theemergenceofglobalcompetitors

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Sheinvs.Uniqlo

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60  RutgersBusinessReview Spring2024 

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likeInditex(Spain),H&M(Sweden),Uniqlo(Japan),andmostrecentlyShein

(China),cross‐border intermediation,technologicaladvances inthesupply

chain,socialmediapenetration,lowprices,andtheever‐growingdemandof

the “fast fashion” segment among customers, which is expected to further

fuel growth to $39.84 billion by 2025.

 This high attention‐seeking buyer‐

drivenindustryisalsogrowingatanimpressiveCAGRof21.9%,evenduring

thepandemic.

Thefastfashionmarketisexpectedtogrowto$184.96billion

in2027ataCAGRof10.7%.



Thecompetitionforbrandawarenessandquickturnaroundtime among

leadingglobal brands suchasInditex and H&M has beenintense.With its

iconic brand Zara, Inditex has historically dominated the market

capitalization of the apparel market, whereas H&M is charting more

sustainable growth and future prospects.

 However, with the rise of Asian

giantslikeFRG'sUniqlo,whichrecentlyclaimedthetitleof“thewo rld's most

valuable retailer,” and China's mysterious Shein, which aced as “the most

downloaded”newapplicationintheUS,providesaclearindicationthatthe

competitivebattleisfarfromover.

16,17

OnlytimewilltelliftheChinesebrand

willbeabletoovertaketheJapanesebrand,bothintheirhomecountryand

globally.Acursorylookat bothSheinandUniqlosuggeststhatstrategically

they have positioned themselves quite differently and seem to be the two

different sides of the same fast‐fashion coin. However, to investigate this

further and arrive at an informed conclusion, we closely examine the fast‐

fashionglobalvaluechaindata,understandthecompetitivelandscape,and

unravel the competing brands' business models and strategic milestones

achieved over the last decade. In doing so, we also attempt to identify the

secretrecipefortheirsuccess.

Fashion,likefastfashion,hasitsownlifecycle.Thelat t er hasashorter

life cycle because it follows trends and is quickly consumed.

 The general

cycle of innovation, general acceptance, and trends decline happens much

fasterthaninotherfashioncycles.FashionCycleslike“classic”haveahighly

longacceptanceperiodandareadoptedbythemassesinthelongrun,but

“fad,” on the contrary, is short‐lived and is adopted by relatively few. Fast

fashion gets placed  between “fad” and “moderate” fashion cycles.

 It is

adoptedbyamoresignificantmassthanthefadcyclebutsignificantlylower

when compared to the moderate fashion cycle (see Figure 1). Thus, as the 

trends are short‐lived and the competition is high, the brands in the fast

fashion industry try to maintain a competitive advantage over others by

scramblingforresourcesfor“quickresponsetime”sothatproductsfromthe

ideation stage can be quickly brought to stores while the trend is at peak

alongwhilemaintainingalowcost.



Sheinvs.Uniqlo 

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RutgersBusinessReview Vol.9,No.1 61

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Figure1.TheFashionCyclesandGrowthStages



Fashion brands have used a variety of global sourcing strategies, which

generally fall between the extremes of complete vertical integration and

outsourcing.

In theformer, companiescarry out production,logisticsand

sourcing, and sales and branding to end customers via their internal

verticallyintegratedsupplychain.Theuseofexternalsuppliersisminimalas

mostprocessesarehandledin‐house,whichallowsregularqualitychecks.In

comparison, the latter strategy involves using contracts and external

partners. The production takes place in emerging markets, where a

significantcostadvantageisgained.Thelow‐valueadditionproductionwork 

involveslabor‐intensiveworksuchassewing,andknittingisoutsourcedto

developingcountries.



The logistics and sourcing segment, which includes downstream

activities, like distributing final products from production houses to

warehousesvia different channels, is handled via the overseas retail office.

The most value‐additive segment, i.e., design, sales, and branding, is

performed in‐house. The apparel global value chain comprises tangible,

increasing value‐added, and intangible activities.

 All these value chain

activities and the strategic choices  made by the different global brands to

competeintheglobalfastfashionindustry,forexample‐adoptingpractices

like just ‐in‐time and quick response, have made the supply management

system lean and responsive. This has led to a significant reduction in lead

timeandhasalso resulted inextensiveandcomplexapparel supply chains

across the globe. These strategic choices have helped the brands achieve

economiesofscaleandfulfillglobaldemand.



Time

Number

of

Fashion

Adopters

ClassicCycle

ModerateFashionCycle

FastFashionCycle

FadCycle

FastFashionfitsinbetweenthefad

andmoderatefashion

Growth Stage Maturity Stage

Decline Stage

Introduction Stage

PeakofPo

ularit



PeakofPopularity



Sheinvs.Uniqlo

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62  RutgersBusinessReview Spring2024 



CompetitiveAdvantage,StrategicPositioning,andKeyResources

From a competitive standpoint, the top three aspects for gaining

competitiveadvantagearerelatedtoeitherofferingquick‐responseservices

(initially developed by Zara and later followed by H&M and others) or

reducingthecosttoincreaseaffordability(asevidentinthecaseofH&M),or

to focus on quality across the valuechain(e.g., The Gap).

24,25

 Out of these

threehistoricstrategic choicestocompetein thefast fashionindustry, the

rising Asian giant Uniqlo has adopted a more nuanced strategic option of

value‐innovation that requires simultaneously working towards reducing

costandsimultaneouslyimprovingqualityparameters.

26,27

Thus,offeringits

customers unique and high‐quality fashion clothes at  an affordable and

competitive price. However, on the contrary, Shein has focused on

technologyandquick‐responsetimebyusingreal‐timedataandbroughtits

product ideation to store time down to just 5‐7 days with low prices to

increase affordability.

 Our data analysis suggests that Shien offers 27.5

timesmoreproductofferingstoitscustomersthanUniqlo.Therefore,speed

tomarket,higherproductofferings,andlowerpricesarekeydifferentiators

of Shein, whereas high quality and innovation have been significant

differentiators for Uniqlo. Thus, different brands have charted a very

differentpathforprofitabilityintheFastFashionindustry.Thecomparison

offinancialperformance,productportfolio,keycapabil i ties(withrespectto

thenumberofstores,in‐housedesigners,geographicalspread,distribution

channel, workforce, fashion transparency index, average monthly website

visits),use of different technologies and social media presence (Instagram,

TikTok,YouTube,andTwitter)providesomeinterestinginsightsaboutthe

resourcesandcapabilitiesofthemajorfast‐fashionbrandsintheworld(see

Table1).

In the next section, we take a closer look at both companies from a

business model perspective. Within the two business models, we examine

andcompare thedifferentelements(who,what,how,andvalue),anddraw

meaningfulinsightsandkeytakeawaysfromastrategicstandpoint.Wealso,

highlight and examine the strategic milestones of the two brands since

inception.



Sheinvs.Uniqlo 



  

RutgersBusinessReview Vol.9,No.1 63



Table 1.The Comparison of Key Strategic Performance and Capabilities of

Shein,H&M,Zara,andUniqlo(asof2022)

Sr.

No.

KeyStrategic

Parameters

Brands

Shein H&M

Inditex

(Zara)

FRG

(Uniqlo)



FinancialPerformance



Typeof



compan



Private



Public



Public



Public



Revenue($Billion)

23.00*



22.54



34.19



16.59



ProductPortfolio



CustomerSegment



GenerationZ



Conscious



Progressives(18‐30)

CarpeDiems



(18‐30)

(18‐34)



Product



offeringsat



retailer'shomewebsite

165,000+



20,000+



9,000+



6,000+



KeyCapabilities



TotalBrick&Mortar

stores



3,875



2,314**



2394



NumberofIn‐house

designers

800+



250+



700+



not



disclosed



GeographicalSpread(no.

ofcountries)

150+



Distribution OnlyOnline OmniChannel OmniChannel OmniChannel



Workforce

25000+



106,522



164,997



57,576



FashionTransparency



Index2023score

(Transparencyofthe

company)



AverageMonthly

Websitevisit(2020)

59.49



112.06



85.13



57.88



Technology&



Innovation



UseofDifferent

Technology

GoogleTrend

Finder,Real‐

timeSCM

software

Forecastingvia

WorthGlobal

StylesNetwork

Automationin

the

distribution

center

RFID,Big

Data,IoT



SocialMediaPresence



Instagramfollowers

(millions)

52.30



38.30



60.90



under10.0



(1)



InstagramInfluencer



mentions(1000s)

57.20



46.10



66.40



undisclose

d



TikTokfollowers

(millions)

8.40



0.36



9.20



under



(2)



TikTokuserlikes

(millions)

61.60



1.10



34.50



under



(3)



YouTube



subscribers



(1,000s)

562



447



114



under100

(4)



Twitter/Xfollowers

(millions)

0.62



8.00



1.40



under2.0

(5)



*EstimatedviatheWallStreetJournal(WSJ.com),asnoannualreportsarepublished.**Totalfigureincludesonly

ZARA and ZARA homes stores.

(1)

 summation of different count ry‐wise Uniqlo Instagram page followers.

(2)



summation of  different country‐wise Uniqlo TikTok followers.

(3)

summation of different country‐wise Uniqlo

TikTokuserlikes.

(4)

summationofdifferentcountry‐wiseYouTubeChannelsubscribers.

(5)

summationofdifferent

country‐wise Uniqlotwitter / X page followers. Source: Compiledfromdifferentsou rces,includingthecompany's

annualreports,librarydata,reviews,andwebsite.



Sheinvs.Uniqlo



   

64  RutgersBusinessReview Spring2024 



China’sShein:AReal‐TimeRetailer

Shein, also known as “TikTok fore‐commerce,” traces its roots back to

October2008amidtheglobalfinancialcrash.

Itstartedas“NanjingDianwei

InformationTechnologyCo”undertheleadershipofthefounderandpresent

CEO,Mr.ChrisXu,anSEOandbrandmarketingexpertworkingpriorforan

online marketing company in Nanjing, China. Chris discovered a potential

businessopportunityinthecross‐bordere‐commerceindustryforwedding

dresses. Along with geographical closeness to “Suzhou,” Asia's largest

wholesale and retail distribution bridal city, he shifted his focus for  the

ventureentirelytothedropshippingbusiness.

Forthenextthreeyears,the

companycontinuedsourcingitsproductsfromChina'swholesalemarketto

overseasshoppers.

Theyear2012changedthedirectionandfuturegrowth

ofthebusiness withthedomainregistrationofsheinside.com(renamedto

shein.comin2015).Withafocusonbuildingacross‐borderwomen’sglobal

brand,Chrishadtoquittheweddingdressbusinesssegment.



Shein was also one of the first companies to focus on social media

marketing,collaboratingwithfashionbloggersforgiveawaysandpromoting

itsproductsonplatformssuchasInstagram,Facebook,andPinterest.

The

companyhititsfirstbottleneckbytheendof2014,i.e.,theinabilitytostock

itemsduetoalackofsupplychain,despiteclockingrevenueupwardsof3‐

4.5millionUSDpermonth.Withhightrafficandsalesvolume,theyhadno

timetolaunchnewpr oducts,andtheoldproductshadalreadygotsoldout.

Senior management claims that this resulted in a poor purchasing

experience, a low return rate, and increased marketing expenses.

 Thus,

founder‐cum‐CEOthensolvedtheproblembysettingupShein’sownsupply

chainandalsoassembled800designerswithaprimaryfocustodesignand

prototype for ultra‐fast production.

32,35

 As it moved its supply chain

operationscenterfromGuangzhoutoPanyu(aglobalapparelmanufacturing

hub) in 2015, almost all partner factories relocated.

 With the rebranding

andleanerwebsite,itsfootprintreachedtheMiddleEasternmarkets,andthe

sales skyrocketed. The loyal suppliers received 7.7 million USD orders or

moreeachyearandachievedlarge‐scaleprofitability.Thesalescontinuedto

climb and, by 2017, reached a massive 1.5 billion USD, a 2.5 times growth

comparedtothepreviousyear.

Shein's success can partly be attributed to the US‐China Tariff War.

Duringthetradewar,China'staxcodedramaticallyreducedthecostforits

local companies and suppliers. Also, waiving export taxesfor direct‐to‐

consumer companies as retaliation from the Chinese administration

immenselybenefitedShein.Itwasshippingitsproductstowarehousesinthe

US duty‐free for under $800 from 2016 onwards.

37,38

 The 2020 COVID‐19

pandemicbecameaboonforSheinasitgrewexponentiallyinrevenueand

Sheinvs.Uniqlo 



  

RutgersBusinessReview Vol.9,No.1 65



applicationdownloads.IteventoppledAmazonandbecamethe'mostnewly

downloaded' shopping application in the U.S.

 (see Figure 2). Also, the

hashtag#Sheingarneredover6.2billionviewsonTikTok.

However,Shein

has been under heavy criticism and accused of copying designs by

independentdesignersandhasfailedtomakelegallyrequireddisclosuresin

the UK and Australia.

40,41

 Its recently launched "Shein X 100k Challenge"

realityshowis alsobeingtermedarebranding gimmick forthe brand.

In

2022,thefirminasurprisingmove,openeditsfirstbrick ‐and‐mortarlocation

inTokyo,Japan,bring itin directcompetitionwithUni qlo.

In 2023amid

stiffcompetition,thefirmfurtherraised$2billioninitslatestfundinground,

withplans of building itsmanufacturinghubs in MexicoandBrazil,which

wouldshortenshippingtimeandcutdistributioncost.



Figure2.ShoppingAppsDownloads(in1000s)intheGooglePlayStorein

theUSinJuly2021



Source:StatistaLeading shoppingapplicationinGooglePlayStoreintheUSinJuly

2021bynumberofdownloads



Shein’sBusinessModelTriangle

Thebrandwiththetaglineof “Shein,Shineout”hasregistereda250%

year‐on‐year increase in revenues.

 Such phenomenal growth can be

attributedtoits customer'soverconsumptionandthebusiness'sasset‐light

(consumer‐to‐manufacturer) business model, where it serves itscustomers

in different geographies via its online store operations directly via its

manufacturers.

46,47

 The finer aspects of the business model are further

explainedviathemagictrianglebusinessmodel(hereafterreferredtoasthe

businessmodeltriangle),whichfocusesonfourcentraldimensions:thewho,

thewhat,thehow,andthevalue.



229.4

261.61

350.17

382.72

456.93

496.78

505.37

513.54

614.04

818.84

0 100 200 300 400 500 600 700 800 900

Sam'sClub

Nike

OfferUp

Alibaba

Wish

ebay

Walmart

Shop

Amazon

Shein

Numberofappdownloadsinthousands

ShoppingApplications



Sheinvs.Uniqlo



   

66  RutgersBusinessReview Spring2024 



Who: The brand, despite being based in China, primarily targets

consumermarketsinAmerica,Europe,theMiddleEast,andAustralia.Itsells

avarietyofclothingand homeaccessoriesbutprimarilycaterstothedemand

ofthefemalesoftheGenZcustomersegment,whichpossesslimitedbuying

powerandextensivesocialmedia usage.

Thebrandis also trendyamong

individualsandhouseholdswithlowerincomesintheUnitedStates.



What:Sheinoffersawidevarietyoflow‐costproducts,focusingprimarily

on womenswear followed by kid’s wear and menswear. It understands the

ever‐changingdemandandthuschasesdifferenttrendsdailybyreleasinga

localfashionportfoliowithanaverageof3,000newdesignseveryday,about

20,000 every week, and about 170,000 SKUs of women's clothing and

accessories instead of representing a specific style as a fashion brand.

51,52



Shein's share of plus‐size garments in its range also outperforms its

competitors, indicating that it is aware of the opportunities in the size‐

inclusive market. It also sells pet wear, homeware, beauty products, and

stationeryinadditiontofashion.



How:Thehuge portfolioreleased dailyonShein'splatformismanaged

due to its highly automated consumer‐to‐manufacturer (C2M) process. It

employs real‐time design testing to monitor and follow different trends

closely.ItintegratesanalyticaltoolslikeGoogleTrendFindertofindrising

trendsandsearchvolumesofdifferentcolors,fabrics,andstylesindifferent

geographies.

 It then combines its user's in‐app and on‐site user behavior

withitsbackendsystemstoforecastfuturedemandforparticulardesignsor

trends and adjusts the inventory in real time.

 The production houses are

located strategically in Guangzhou, the world's largest fabric market with

large built‐in Chinese‐style industrial concentration complexes.

 The

suppliersarelocatedwithinatwo‐hourdrivefromShein'sheadquartersand

convert the design to production in seven days, much faster than industry

standards.

 The team constantly performs A/B testing (also called split

testing, wherein the two versions are tested to figure out the better‐

performing variation) on different products with a minimum batch of 100

pieces,unlikeZara,whoseminimumproductionvolumeis500.

Thisallows

it to produce a wide variety of small quantity products and mass‐produce

onlythesuccessfulproductsthathitthetrendandcustomer'sdemand.This

approachprovidestheproductionteamwithreal‐timedataandreducesits

riskoffailureandtheinventorystockingperiod.

Shein's marketing team heavily advertises on YouTube and Facebook,

which has placed the brand at an all‐time high in Google clothing

searches.

59,66

 Influencer marketing via key opinion consumers helps create

content,suchasTikTokhashtag#sheinhaulswhichhasover4.5billionviews,

or share discount codes by giving them free clothes or shop credits. This

Sheinvs.Uniqlo 

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

approach has helped the brand reach out to new customers and save high

costs.

60,61

 To maintain constant engagement with its customers, Shein

gamifiestheirpurchaseexperiencebyrewardingthemforcumulative daily

logins, playing its in‐app mini‐games, participating in outfit competitions,

andwritingreviews.

Thesetacticstakeretailtainment(i.e.,theuseofsound,

ambiance, emotion, and activity to get customers interested in the

merchandiseandinthemoodtobuy)astepfurther,

astheysignificantly

boostretention,first‐partydatacollection,andsaleconversion.



Value: Shein mainly uses two value‐creation methods: low cost and

differentiation via trends and gamification. This has helped it gain a

substantial competitive advantage in foreign markets, contributing to

profitability and growth.

 By virtue of low cost, wholesale Chinese

manufacturing,supplychain,andlaboradvantagescannotbeignored.The

lowpricewithtrendydesignshashelpedcracktheinternationalmarketand

winthefavorofmiddleandlower‐levelconsumersdespitewell‐established

competitors. The brand has also focused on a differentiation strategy by

producing various design portfolios and its gamification purchase

experience. It encourages users to turn into the brand's key opinion

consumers or micro‐influencers, thus developing more User‐Generated

Content(UGC),whichbuildstrustandtemptsnewusersfurthertotrytheir

products.

 This indeed helps further establish its foothold in the

internationalfastfashionindustry.Further,itscompletealienationfromthe

physicalretailstoreshashelpedeliminatephysicalretailandoperationscosts

andthuskeptthebusinessasset‐light.Thishasalsohelpedthebrandfocus

andupgradeitslogistics,warehousing,anddigitalpresence.



Over the last decade, Shein has achieved multiple strategic milestones

(seeFigure3).ItexpandeditsfootprinttoSpainwithintwoyears.Itacquired

Rowme to expand and acquire new product categories and built its own

supplychainwithinfiveyearsofitsexistence.Itrebrandeditselfandshifted

operations from Guangzhou to Panyu in 2015. Interestingly, all of the

factories that worked with Shein also relocated with it to Panyu. This was

quite unusual for factories, but it worked because Shein garnered a

reputation for timely payment, something of a rarity in China.

 In  2016,

Shien entered the Middle East and by 2017 its revenue reached  $1.5 Billion

within a span of three years the revenue crossed $10 Billion. In 2021 Shien

announced the first‐ever Shien X 100K Challenge that provided an

opportunityforemergingdesignerstowinagrandprizeof$100,000.Through

thecompetition,Sheinhaspartneredwithover3000designersandlaunched

more than 25,000 original creations. It has further ventured  into physical

store in Japan and pop‐up stores around global fashion capitals. In 2023,



Sheinvs.Uniqlo



   

68  RutgersBusinessRevie w Spring2024 



Sheinfurtherexpandeditsoffering,withtheone‐thirdacquisitionofSparc

Group,whichowns“Forever21.”



Figure3.Shein’sKeyStrategicMilestones



Source: Compiled from different sources, including the company's annual reports, library data, reviews, and the

company'swebsite.



Japan’sUniqlo:TowardsDietFast‐Fashion

Uniqlo has a rich history that dates back to March of 1949, with the

establishment of “Ogori Shoji” in Japan's Yamaguchi prefecture as the first

men'sclothingstore.Withtheonsetofthe“JapaneseEconomicMiracle”over

thefollowingdecades,

theJapanesebusinessesprospered,and“OgoriShoji”

alsoexpandedto22outlets.

In1985,underTadashiYanai'sleadership,an 

offshoot of the parent company named “Unique Clothing Warehouse”

openeditsdoorinHiroshima.Ridingonmomentumandexcellentresponse,

alargeroadsideoutlet withgreatpublicity wassoon openedinYamaguchi

prefecture for catering to bulk buying and  customers arriving by car.

 To

transform and turn Japanese retail into a brisker business, the parent

companywas renamedFast RetailingCo. Ltd.

In 1994,thecompany went

public, and in 1999 its shares got promoted to the first section (for large

companies)of theTokyoStockExchange. Duringthisperiod,theJapanese

economysuffered  a significanteconomic crisis,whichled totheclosure of

multiplebusinesses.However,thecompanycouldsustainandcutdownits

prices as its production houses had already shifted to China in 1993, years 

before the recession.

 With the launch of its iconic ¥1,900 or (about $15)

fleecejacketproductline,whichwaslessthantheaverage$40 Japanesemen's

shirtand one‐fifthofother Japaneseretailers'price,thesalesskyrocketed.



Theproductlineturned out to be a massive hit as it was low on price but

high on quality. At the height of the demand, the company offered 51

different color shades of flee‐jackets. Due to the successful campaign, the

brandcouldalsobreach$2billioninsalesforthefirsttime.

Sheinvs.Uniqlo 

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

ThecompanysoonshifteditsheadquarterstoTokyoin2000andstarted

transformingitsstoresintolarge‐formatstores.Thestoresstartedgenerating

sizablesalesinheavyfootfallareasandspaciousfacilities.Thebrandturned

tointernationalexpansiontocontinueitsgrowthtrajectoryastheJapanese

apparelmarketwasnearitssaturationpoint,anditexperiencedafallinsales

in the recent financial quarters. Thus, in late 2002, Uniqlo expanded its

footprinttoChina,withtwolargeretailoutletsinShanghai.Metwithstrong

demand,thestorecountgrewexponentiallyandsurpassedtheJapanesestore

countin2020.

ItsubsequentlyexpandedtoothermajormarketsintheUS,

Europe, and major South Asian countries. Fast Retailing also acquired

strategic foreign brands like J Brand, Princess Tam Tam, Comptoir des

Cotonniers,andTheorytostrengthenitsmarketpositionindifferent global

markets.

Tomaintainqualitycontrol,Uniqlostationsatextileprofessional

teamateachpartnerfactorycalled“Takumi”tooverseeproductionandlend

their expertise with sewing and material production techniques.

 To

respondadequately toglobal refugeerequirements,the companyformeda

globalpartnershipwiththeUnitedNationsHighCommissionerforRefugees

(UNHCR) in 2011.

 Thus as a part of the partnership in 2019 during the

COVID‐19 crisis, Uniqlo donated 3 million masks to refugee families via

UNHCR.

Inthesameyear,UniqloalsoexpandedtoIndiawithmega‐stores

in the bustling cities New Delhi, Lucknow and Chandigarh. The strategic

expansion experienced overwhelming demand among Indian customers,

whichsoaredsalesaswellascatapulteditsIndianoperationstoprofitability

within 3 years of establishment.

 In 2021, Uniqlo further partnered with

Doraemon as its global sustainability ambassador and launched product

madefrom100%recycledpolyesterfibers.

In2023,thefirmachievedrecord

profits,withresurgenceinbothdomesticandinternationaldemands,which

hasenabledstoreandmanufacturingexpansioninNorthAmericaandIndia

respectively.



Uniqlo’sBusinessModelTriangle

Uniqlo has charted a different course than its competition. The brand's

business model focuses on the customer at its center and plans its design,

production,andsaleswherequalityandinnovationareprioritized.Themore

nuancedaspectsofthisarefurtherexplainedviathemagictrianglebusiness

model that helps bring the technologists and business people on the same

pageastheyfocusonfourcentraldimensions:thewho,thewhat,thehow,

andthevalue.

Who:Withthetagline“Madeforall,”thebrandpositionsitsprivatelabel

offeringas casualandtrend wearfor allage groups,i.e.,men,women,and

children.

 The emphasis on the quality, durability, and affordability of its



Sheinvs.Uniqlo

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70  RutgersBusinessReview Spring2024 



products indicates excellent value for its customers. This is further

demonstratedbytheproductionofformalin‐freebabyproducts(formalin–

a garment adhesive that might cause rashes and allergies in babies) and

machinewash‐resistant(15‐times)merinowoolproducts.

83,84

Thus,allowing

evenworking‐class,middle‐class,andupper‐classsegmentstobeunder  its

purview.

ThebrandunlikeSheincaterstocustomerdemandfromitshome

country i.e., Japan where it offers “photo booth” and “coffee” services to

enhancethecustomerstoreexperienceandkeyinternationalmarketssuch

astheUnitedStatesandEurope,with"3‐Dfit"featuresdesignedtomeetthe

clothingneedsoflocalobesepeople.

86,87

What:Unlikeitscompetitors,Uniqloforegoessellingthehottest,flash‐

in‐the‐pan trends and instead focuses on value innovation and releases a

limited number of its private‐label SKUs via its flagship stores and e‐

commerce channels year‐round. It  combines its products with technology

andminimalisticdesignstodistinguishitselfbyprovidingfunctionality,ease,

and usefulness complemented via various color choices. Popular and

functional clothing lines like AIRism, Heattech, Blocktech, and Kando are

prime and bestselling examples of fabric innovation.

 It has also timely

introducedlimited collections viacollaboration withfamousdesigners like

JilSandersandJW Anderson,further increasingitspopularityand reach.



Uniqloalsooffersaccessoriesthataremarketedbypracticability.

How: Uniqlo's product design is centered around functionality and

minimalism;thus,withitsR&Dteamsstationedworldwide,itdoesnotfollow

trends and instead plans production designs a year in advance based on

longevity, customer feedback, and market research, which accounts for

staggering70%.

90,91

Thenthemerchandisingteamtakesforwardtheproduct

creationprocessbydecidingtheproductlineupsandvolumesandmonitors

the increase or decrease in the production during the season. Advanced

production planning and utilizing economies of scale help the material

development team procure high‐quality materials at a low cost. Thus, the

productionisoutsourcedtoitspartnerindustriesinChinaandotherSouth

Asian countries under its SPA business model, which helps control the

business process and drastically reduces its cost.

 With a high focus on 

quality, it forces competition between its suppliers and potential “partner

factories” to maintain high standards by building advanced production

capacitiesviatechnologicalupgradationandthusrequiresadefectiverateto

bemaxedat0.3%,waymorestringentthantheindustrystandardof2‐3%.



The sales division of Uniqlo is a synergy of e‐commerce and physical

stores i.e., promoting sales via the latter. It follows the  company tagline

"simple made better" and provides a quality in‐store experience through

wide‐openisles,massiveLEDscreens,neatlystackedshelves,andself‐service

Sheinvs.Uniqlo 



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RutgersBusinessReview Vol.9,No.1 71



checkouts.Also,thestaff,whichisconsideredanextensionofthebrand,is

rigorously trained in developing an etiquette‐driven atmosphere and

provides superior customer service by micro‐managing all its

touchpoints.

 The integration of AI‐powered “Uniqlo IQ” assistant with

brick‐and‐mortarretailstoreprovidesapersonalizedshoppingexperience.



Itmapsthecustomer'sgeographicallocation,showsthenearestUniqloretail

store, and promotes exclusively available in the brick‐and‐mortar store.

Specialdigitaltoolssuchas"pricetagscannerfunctions"andthesameday

"Click&Collectservice"havealsobeeninstrumental.



Value: Uniqlo's value creation depends upon its low cost and

differentiation via comfortable shopping,

 practical, quality‐for‐money

products, its unique store experience, and top‐notch customer experience.

UnderitsSPA(SpecialtyStoreRetailerofPrivateLabelApparel) model,the

brand outsources its production to “partner industries,” encompassing all

stages of the business from design to production to final sale. This highly

vertically integrated model allows Uniqlo to have a more significant price

advantageduetoremovingintermediariesandhigherchannelcontrol.

87

It

furtherdeploysateamofexperttextileprofessionals,knownas“Takumi,”to

thepartnerindustriestoprovidetechnicalguidanceandsupervision,aswell

astoimplementstandardizedqualitycontrolacrossproductionbyadhering

to the three quality management system standards of emphasis on

partnership quality, business process quality, and social quality.

87,98

 The

ongoing “Ariake Project” offers further digitalization and automation of

Supply Chain Management (SCM) in reducing the “lead time” and helping

generate accurate production volume predictions. The importance of

product availability at the right time and the right place was the utmost

priorityaslateorderedproductsleadtolossofsales.



Uniqlohasbeeninexistenceforthelastsevendecades.Infact,itisseven

timesolderthanSheinandhasachievedmultiplestrategicmilestonessince

itsinceptionin1949(seeFigure4).Ittook35yearstosetupitsfirststorein

1985andshifteditsentireproductiontoChinain1993.Itwentpublicin1994

and focused on bringing multiple first‐to‐world clothing products through

strategic partnerships and collaboration. For example, in 2003 it launched

Heattechin collaboration withToray Industries. By2009it hadmorethan

2000 stores and in 2017 launched the Ariake project to become a digital

consumer retailing company.

100

 In 2021 Uniqlo was crowned as the most

valuableclothingcompany.Itreached $103billioninmarketcap,surpassing

Zara’smarketcapofabout$99billion.



Sheinvs.Uniqlo



   

72  RutgersBusinessRevie w Spring2024 



Figure4.Uniqlo’sKeyStrategicMilestones



Source:Compiledfromdifferentsources,includingthecompany'sannualreports,librarydata,reviews,

andthecompany'swebsite



Discussion:WhoisWinningandWhy?

To answer this question, one needs to define what winning stands for.

Whetheritisbasedonfinancialoutcomes(revenue,growth,marketshare,

wallet share, etc.) or non‐financial outcomes (e.g., customer satisfaction,

brandimage,mindshare,etc.).Also,toexaminefromwhosestandpointthe

firm is trying to win. Whether it is more from an internal (employees,

investors, shareholders) or external (customer, suppliers, community at

large) standpoint. With the current emphasis on Environment,

Sustainability, and Governance (ESG) measures, it is equally important to

examinehowthesetwocompanie sarefaringtowinthesustainabilitybattle

(impactingthecommunityat large).Bylookingatthegrowthperformance

ofbothUniqloandShein(especiallyduringtheCovid‐19times)itseemsthat

botharewinninginthefast‐fashionindustry.However,acloserlookatthe

different aspects of positioning, business model selection, strategy,

technological adoption, focus on ESG, and strategic investments to build

capabilitiessuggestthatbothcompanieshavechosenaverydifferentpathto

success(see Tables2and3). Thedifferentpathsthat  thesetwocompanies

have taken across different aspects of running the business will lead to

winninginafewareasandlosinginothers.Thekeyquestionisifthewinner

willtakeitall.Whatdoyouthink?



ClosingRemark

Thecasestudyhighlightsthekeystrategicperformanceandcapabilities

ofthetoptwofast‐fashionretailchainsoftheworldinadditiontoexplaining

whatawinner‐take‐allmarketandthevaluechainoftheglobalfast‐fashion

businessis.Thedeepdiveintothedifferentelementsofthebusinessmodel 

triangleofbothShienandUniqloexplainswhythesetwocompaniesarethe

fastest‐growingretailersacrosstheworldandalsouncoversthesecretrecipe

ofstrategicpositioningthatavoidspricewarsanddirectcompetition.Inthe

Sheinvs.Uniqlo 



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RutgersBusinessReview Vol.9,No.1 73



end, it raises an important question‐ifthe winner takes it all in the fast‐

fashionindustry?



Table2.KeyAspectsofBusinessStrategyofSheinvs.Uniqlo



Shein Uniqlo

Customersegment GenerationZ

Clothesforallkindsof

people

Businessmodel

Assetlight

(onlyasanonlineplatform)

Circular

(Omnichannelpresence)

Strategy Me‐too Value‐innovation

Technologyadoption Veryhigh High

Focusonsustainability&

environment

Low Veryhigh

Fundingrequirements High Low

Strategicfocus Intangibleactivities

Bothtangibleand

intangible

Quick‐responsecapability Fewdays Takesmonths

Source:Compiledbyauthorsbasedonsecondarydata



Sheinvs.Uniqlo



   

74  RutgersBusinessReview Spring2024 



Table3.ComparisonoftheKeyElementsoftheBusinessModel:Uniqlovs.

Shein

Magic

Triangle

Dimension



Key

Elements

UNIQLO

Madeforall

SHEIN

ShineIn,ShineOut

Who

Customer

segment

∙Male&Femalebetweenage

between18‐40years.

∙Particularlyforwomenunder25,

offersproductsformenand

childrenaswell.

What

Value

propositions

∙Preparesproductdesignsinadvance

(1yearbeforeproduction).

∙Focuson“fabricinnovation”through

constant(e.g.,functio nalclothinglines

likeAIRism,Heattech,Blocktech,and

Kando)R&Dandcollaboration

∙Offerlowcostanddifferentiation

(valueinnovation)viacomfortable

shopping

∙Spotstrendsviauser'sreal‐time

data.

∙OffersaveryhighSKUof

differentdesignsandbulkorders

itemsinreal‐timebasedon

customerpreference.

∙Providesthecustomerwithlow

priceandtrendyclothes,not

focusingonquality.

Value

Revenue

streams

∙Earnsrevenuemainlyviathesaleof

privatelabelclothesviabrick‐and‐

mortarandonlinesales.

∙HighRevenuecountries‐China,

South‐EastAsia,andAustralia,trailing

behindintheUS.

∙Earningthroughaccessoriesthatare

marketedbypracticability.

∙Earnsrevenueviathesaleof

onlineproducts.

∙HighRevenuecountries–US&

MiddleEast.

∙Profitfrompartneringwith

otherbrandsandfeaturingthem

onitsplatform.



Cost

structures

∙



Asset‐heavymodel(Bothchannels



includingbrickandmortar).

∙PublicLimitedCompany.

∙



Assetlightmodel(Online



Channelonly).

∙PrivateLimitedCompany.

How

Channels

∙O2OModel(OnlinetoOffline

model).

∙IntegratingOnlineandoffline

purchasesforbetterstoreexperience.

∙Onlinemodelonly.

∙Nobrick‐and‐mortarstores,

thuslessinvestment.

Customer

relationships

∙



Feedbackisconstantlytakeninto



designandproductiononaweekly

basis.

∙Conductedacustomerfeedback

surveyandachieveda96%satisfaction

response.

∙



Feedbackistakenwhen



controversialdesignsare

promoted.

∙Multiplecasesofusingstolen

designsfromindependent

designers.

Key

resources

∙



Outsourcedentireproductionto



China.

∙Regionaldistributionsystemand

deploymentofTakumi’steamfor

qualityCheck.

∙



ProductioninChina.



∙Shein'ssupplychain

management(SCM)software

Key

activities

∙



Useofadvancedanalyticsforlogistics



&andsupplychain.

∙Marketingvia‐Flyers&Television

Advertisement.

∙Lacksunifiedsocialmediapresence.

∙Relativelyweakersocialmedia

presencecomparedtoShein



∙



HeavyReal‐Time



Analyticsfor



orderplacementandproduction.

∙ConstantmonitoringofUser

behaviorfortrendfinding.

∙Marketingvia‐RealitySho w,

TikTok,Micro‐Influencers,Heavy

dominanceuponTikTok(Social

App.)via#Sheinhauls,andvia

Micro‐influencerswhoget10‐20%

commissiononeachpurchase.

Key

partners

∙



TorayIndustries



‐



ChemicalPartner.



∙AkharaCorporation‐FabricPartner.

∙



Klarna



‐



AlternativePayment



Partner,andSpotii‐BuyNow,

PayLaterPaymentPartner.

∙Syte‐VisualSearchEngine

Partner.

Source:Compiledbyauthorsbasedonsecondarydata

Sheinvs.Uniqlo 



  

RutgersBusinessReview Vol.9,No.1 75



DiscussionQuestions

 Whoiswinningintheglobalfast‐fashionIndustry?Why?

 What are the different sources of gaining a competitive advantage in thefast

fashionbusiness?

 WhatarethedifferentelementsofShein’sandUniqlo’sbusinessmodels?How

havethesetwocompaniespositionedthemselvesandhowhavetheyinnovated



theirbusinessmodel?

 CanSheinovertakeUniqlointermsofmarketshareandoverallrevenueinthe

nextfiveyears?Why?Whynot?

 Is the “winner‐takes‐all” applicable in the global fast‐fashion market? Why?

Whynot?



Authors

Prof.(Dr.)RohitKumariscurrentlyworkingasanAssistantProfessorattheIndian

Institute of Management (IIM), Ranchi. He has a PhD in Strategic Mana gement

from the Indian Institute of Foreign Trade (IIFT), New Delhi and an MBA in

Healthcare Management from the Indian Institute of Health Management

Research (IIHMR), Jaipur. Prof. Kumar completed his executive education at

HarvardBusinessSchool,Boston,USA.Heisauniversityrankholderandhasmore

thantwodecadesofteachingandcorporateexperience.Hehaspublishedmorethan

thirty‐five research papers in peer‐reviewed journals, nine books, and book

chapters, and has presented more than thirty research papers at national and

internationalconferencesworldwide.HeisalsotheBoGMemberofIIHMRDelhi

and an Accredited Management Teacher (AMT). His research interests include

strategicmanagement,designthinking,businessmodelinnovation,buildingcore

competenciesandentrepreneurship.

email:[email protected]



Mr. Shubh Majumdarr is currently pursuing a doctoral degree in General

Management at the  Indian Institute of Management in Ranchi, India. He earned

hisB.TechinElectronicsandCommunicationwithaDistinctiongradefromBirla

Vishvakarma Mahavidyalaya, India. His research interests include strategy,

innovation, energy and communication‐related  topics. He has presented his

research at prestigious conferences held at the Wharton Business School (USA),

Trinity Business School (Ireland)  an d IISc (India). His recent journal and case

publications have been published in prestigious journals such as the Journal of

Knowledge Management, Journal of Global Information Management,

ManagementDecision,GlobalKnowle dge,MemoryandCommunication,Employee

Relationsand RutgersBusiness Review.He hashands‐onexperience withdiverse 

qualitativeandquantitativeresearchmethods. Furthermore,heisproficient with

softwaresuchasSPSS,RProgramming,IBMAmosandbibliometricsoftware.

email:[email protected]



Sheinvs.Uniqlo



   

76  RutgersBusinessReview Spring2024 



Endnotes

1. João,M.,& Neto, P. (2018).Charles Frederick Worth and the birth of Haute Couture:

Fashion design and textile renewal in the times of conspicuous consumption. In G.

Montagna,&C.Carvalho(Eds.),Textiles,identityandinnovation:Designthefuture(pp.

287‐293).CRCPress.

2. Easterbrook,R.(2022).

ShoppinglikeaSatyr,stylinglikeanymph:Towardsahistoryof

classicalreceptioninconsumption.InternationalJournaloftheClassicalTradition,29(1),

24‐49.

3. Globe Newswire. (2023, March 17). Global fast fashion market report 2023: Players

include Zara, H&M, Fast Retailing (Uniqlo), Gap, Forever 21, Mango, Esprit, Primark,



NewLookandRiverIsland.ResearchandMarkets.

4. Liang,Y.,Lee,S.‐H.,&Workman,J.E.(2020).Implementationofartificialintelligence

infashion:Areconsumersready?ClothingandTextilesResearchJournal,38(1),3‐18.

5. Sillaman, N. K. (2023). New trends: Looking at the future of the

 fashion and luxury

industryinthepost‐pandemicworld.RutgersBusinessReview,8(1),88‐94.

6. Kenneth,J.(1995).Thewinnertakesall...sometimes.HarvardBusinessReview.

7. Hayes,A.,Brown,J.R.,&Beer,K.(2022).Winner‐take‐allmarket:Definition,examples,

economicimpact.Investopedia.

8. Alcantara,C.,

Schaul,K.,DeVynck,G.,&Albergotti,R.(2021,April21).HowBigTech

gotsobig:Hundredsofacquisitions.TheWashingtonPost.

9. Gladwell,M.(2008).Outliers:Thestoryofsuccess.LittleBrown.

10. Reddy, N.(2018, February12).Wantasuccessfulbusiness?Buildaneffectivestrategy.

Forbes.

11. Stanton,A.(2021,June5).Whatisfastfashion,anyway?TheGoodTrade.

12. Pinnock,O.(2021,September24).Sustainablefashionwantsbrandstoredefinebusiness

growth.Forbes.

13. Fastfashionglobalmarketreport2021.(2021,May27).BusinessResearchInsights.

14. Globe Newswire. (2023, March 17). Global fast

 fashion market report 2023: Players

include Zara, H&M, Fast Retailing (Uniqlo), Gap, Forever 21, Mango, Esprit, Primark,

NewLookandRiverIsland.(2023).ResearchandMarkets.

15. H&M.(2020).H&MAnnualReport2020.

16. Bain, M. (2021, February 22). How Uniqlo became the world’s most valuable clothing

company.Quartz.



17. McCann, M. (2021, May 24). How Shein surpassed Amazon as the most downloaded

shoppingappintheU.S.ModernRetail.

18. Yinyin, W. (2011). Consumer behavior characteristics in fast fashion. [Master’s thesis,

UniversityofBorås,SwedishSchoolofTextiles].DigitalaVetenskapligaArkivet.

19. Muthu,S.S.(2018).Fast

fashion,fashionbrandsandsustainableconsumption(1sted.).

Springer.

20. Tartaglione, A. M., & Antonucci, E. (2013). Value creation process in the fast fashion

industry:Towardsanetworkingapproach.InE.Gummesson,C.Mele,&F.Polese(Eds.),

The2013NaplesForumonService.ServiceDominantLogic,Networks&Systems

Theory

and Service Science: Integrating three Perspective for a new Service Agenda (pp.91).

Giannini.

21. Mihm, B. (2010). Fastfashionin a flat world: Global sourcing strategies.International

Business&EconomicsResearchJournal,9,55‐63.

22. Theglobalindustryofapparel:Globalvaluechain[Blog].(2017).DukeUniversity.

23. The apparelindustry,fromfactoriestoretailstores:AGVanalysis[Blog].(2017).Duke

University.

Sheinvs.Uniqlo 



  

RutgersBusinessReview Vol.9,No.1 77



24. Vitzthum,C.(2001).Zara’s“QuickResponse”fashiongivesitanedgeovercompetitors.

TheWallStreetJournal.

25. Shankar,V.(2020).HowisH&Mbringingthecirculareconomytotheapparelindustry?

TheStrategyStory.

26. Kumar,R.,&Majumdarr,S.(2022).TheUniqlocase:Fastretailingrecipefor

attaining

marketleadershippositionincasualclothing.RutgersBusinessReview,7(1),61‐76.

27. Majumdarr, S., Dasgupta, S. A., & Farooq, R. (2023). Open innovation and firm

performance in emerging economies: A bibliometric and TCCM analysis review.

ManagementDecision.

28. Gan,J.(2021).Here’swhyyoushouldnevershop

atSheinnomatterwhat.Medium.

29. SHEIN:Aboutus[organizationwebsite].(n.d.).Shein.

30. Poorguysborninthe1980shavecreatedagiantofhundredsofbillions:ThisChinese‐

madecompanyisbecomingthetoptrendinglobalfashion.(2021,May22).iNews.

31. Brownlees,T.(2021).

Sheinvs.Zara‐Fastfashioncasestudy.440Industries.

32. Chan, J. (2020, August 12). SheIn Rise‐China’s most mysterious multibillion dollar

company.FirmKnow.

33. Nguyen,T.(2021).Sheinisthefutureoffastfashion.Isitethical?Vox.

34. LatePost.(2021,January26).DecodingShein:Growingpainsand

bittersplits(Part2of

3).KrASIA.

35. Faithfull, M. (2021, February 10). Shein: Is China’s mysterious $15 billion fast fashion

retailerreadyforstores?Forbes.

36. FastfashionretailerSheinbracesforpossible$47billionIPO.(2021).ExBulletin.

37. Noticeonthetaxpolicyforretailexport

goodsinthecomprehensivepilotzoneforcross ‐

border e‐commerce. (2018). Ministry of Finance, State Administration of Taxation,

MinistryofCommerce,GeneralAdministrationofCustoms.

38. BloombergNews.(2021,June14).HowTrump’stradewarbuiltShein,China’sfirstglobal

fashiongiant.Bloomberg.

39. Liao,R.(2021,May18).

SheinovertakesAmazonastopshoppingapponUSappstores.

TechCrunch.

40. Michie, N. (2021). Shein accused of stealing from small designers again. FASHION

Magazine.

41. Waldersee, V. (2021, August 6). Chinese retailer Shein lacks disclosures, made false

statementsaboutfactories.Reuters.

42. TheEconomistEspresso.(2021,September

3). Wolf inShein’s clothing? Fast‐fashion’s

TVrebrand.(2021).TheEconomist.

43. Faithfull,M.(2022, November2). No IPObut online giantSheinto open Tokyostore

thismonth.Forbes.

44. Reuters. (2023, May24). Fast‐fashion giant Sheinplans Mexico factory. The Economic

Times.

45. Hanbury, M.

 (2021, October 5). How China’s most mysterious billion‐dollar company

wonoverUSteensandbecameTikTok’smost‐hypedfashionbrand.BusinessInsider.

46. Fang,L.(2021,February27).IsSHEINethical?Deepdiveintotheirgreenwashing[Blog].

ImperfectIdealist.

47. Kamarudin,N.(2021).Fashion industry report:HowShein

uses a C2Mmodeltohook

theGen‐Zmarket.Omnilytics,1‐18.

48. Gassmann, O., Frankenberger, K., & Csik, M. (2013). The St. Gallen business model

navigator(WorkingPaper).Switzerland:UniversityofSt.Gallen.

49. Shein'smarketstrategy:howtheChinesefashionbrandisconqueringtheWest.(2022).

DaxueConsulting

‐MarketResearchChina.



Sheinvs.Uniqlo



   

78  RutgersBusinessReview Spring2024 



50. Fu, Y. (2021, August 29). SheIn: A story of online segregation and data as business

intuition[Blog].YiqinFuGithub.

51. Jones,B.L.(2021,November9).Shein:ThesecretiveChinesebranddressingGenZ. BBC

News.

52. Jin,Y.(2023).SHEIN:Howdoesthemostmysterious10billion‐

dollarcompanyinChina

achieve overseas growth? In J. Zhang, K. Ying, K. Wang, Z. Fan, & Z. Zhao (Eds.),

Innovationofdigitaleconomy(pp.443‐452).Springer.

53. Marci, K. (2022, March 5). Decoding the ultra‐fast SHEIN business model [Blog].

EDITEDRetailIntelligence.

54. Jeffrey,W.(2021).An

incompletebusinessstoryaboutShein.Pandayoo.

55. McCormick,P.(2021,May17).Shein:TheTikTokofecommerce.NotBoring.

56. SHEIN’sdailysalesexceedUS$70million,andthegoalistoexceedZARA’ssaleswithin

2years.(n.d.).LatePost.

57. LatePost.(2021,January26).DecodingShein:Growingpainsand

bittersplits(Part2of

3).KrASIA.

58. Demystifying Shein: the rise of China’s most mysterious tens of billions of dollars.

(2020).LatePost.

59. Fu, Y. (2021, August 29). SheIn: A story of online segregation and data as business

intuition[Blog].YiqinFuGithub.

60. Gan,T.(2021,June

24).WhyaremassiveSheinhaulssopopularonTikTok?GreenIsThe

NewBlack.

61. Kumari,A.(2022,December9).Sheinclothing:Thegeniusmarketingstrategybehind

thebilliondollarcompany.Jungleworks.

62. Zwieglinska, Z. (2021, August 31). Inside Shein's strategy for winning over Gen‐Z

shoppersandyoung

designers.Glossy.

63. Ritzer, G. (1999). Enchanting a disenchanted world: Revolutionizing the means of

consumption.PineForgePress.

64. Verhaeghe,S.(2021).HowSheinisrevolutionizingthefashionindustry.Duke&Grace.

65. Zhang, L., & Gou, Y. (2021). Value‐creation strategy of Nanjing SHEIN. International

JournalofFrontiers

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