Shein, Temu and TikTok: disrupting the runway, the future of fashion retailing (2023)

Shein, Temu and TikTok: disrupting the runway, the future of fashion retailing (2023)

The global fashion industry stands at the precipice of transformation. This report delves into the fast fashion landscape, exploring key players, market dynamics, and emerging disruptors, with a particular focus on the impact of Chinese retailers. The rise of Chinese retail behemoths like Shein and Temu signals a paradigm shift.

Shein and Temu represent a new challenge. The slow, steady rise of Inditex and H&M to the pinnacle of fashion retailing took decades (similarly Primark, Asos, Zalando etc). Now Chinese companies coming from more or less nowhere (in the case of Temu, the company was only founded last year) or Shein (launched in 2008) are taking over and reshaping the industry at a rapid pace.

Executive summary
Leading fast fashion players and their revenue history
Inditex, H&M, Uniqlo, Primark, Asos, Boohoo (Annual turnover in $bn, 2005-22)
Zalando, About You (Annual turnover in €m, 2009 - 22)
Apparel, online fashion market sizes, EU and US 2022
The Chinese takeover - The future of fashion retailing
From outsourcing production to China
to Chinese sellers on Amazon marketplace
to Chinese retailers going direct
The reaction from the West
Shein - an introduction
Shein annual turnover, 45% growth in 2022
Shein - the TikTok phenomenon
Operating model - vertical integration
like a marketplace for suppliers
Gaming the tax system
Shein issues: Xinjiang, forced labour
Regulators response
Shein - posts US lobbying tab
Designers sue for copyright infringement
Shein holds largest U.S. fast fashion market share
US Fast Fashion Sales 2020-2022 (Asos, Fashion Nova, Forever21, H&M, Shein,
Zara % shares)
Online sales as % of Total US Sales for Fast Fashion
The victory of online only in fast fashion
Shein and Forever 21
A mutually beneficial relationship
Shein marketplace - will this work?
The Shein marketplace in the US, launched in May
Shein to buy Missguided
Shein UK reaches £1.1bn revenue
Shein shifts shipping strategy
to bring products closer to US shoppers
Plans to ship Brazil-made products around Latin America from 2026
Temu: the new most popular shopping app
Temu, owned by Pinduoduo
Temu - Chinese sellers going direct
The no name brands champion
Unwanted attention from US Congress
Temu - aiming for other global markets
Temu’s lawsuit against Shein
Temu, PDD growth of 66%, quarterly sales of US$7.2bn
Temu is now outperforming Shein in the US
TikTok - the video phenomenon
TikTok: $1bn turnover in international markets
TikTok investing for growth, huge losses
TikTok - Project Aquaman
TikTok, 100m US users, TikTok shop
Will live streaming work in the West?
Fulfilled By TikTok (FBT) launched in the UK
First results of TikTok Shop in the US
Trouble on the horizon for fast fashion?
Trouble on the horizon for fast fashion?
The problem - not just the Chinese apps
The EU’s net zero commitments, the circular economy
Ultra fast fashion has made everything worse
The EU’s extended producer responsibility scheme
A QR code to function like the CE label?
Sizing & Returns remain the perennial problem
Solutions from Google, Zalando
Strategic recommendations
Could western players copy the Shein model?
Could western players copy Shein’s logistics?
How could western players stop Shein/Temu?

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook
Cookie Settings