The Chris Xu explosion: When will it be a problem for Marta Ortega?

Inditex is the absolute queen in the world fashion sector.However, in recent years rivals have been leaving his leadership position.Although many have tried to hunt him, none has achieved it.Until today.China Shein has been stomping, winning share in the main markets.This company can become a true headache for Marta Ortega.

It is not the first time that other rivals try to enter competition with Inditex to dethrone it.However, these attempts have fallen into a broken sack, and the artist of Arteixo continues to agglutinate more than 30% of the market.The one that has managed to approach has been primark.The Irish company began strongly in the Spanish market, but its impetus has not earned him to snatch the first position from the Galician firm.

Otra compañía que vino arrasando a nuestro país fue H&M.The Swedish company wanted to shade the company founded by Amancio Ortega with its own collections at a more than profitable price.However, its intention has not been enough. Aunque España es un mercado importante para H&M, está muy lejos del podio.

With this background, Shein comes to try to face the giant of the Spanish retail par excellence.However, there are certain data that can make you think that the Asian company founded in 2008 by Chris Xu can enter the market strongly and snatch that first position.

Shein leads the US market

The two most important markets for the retail sector in the world are Europe and the United States.If we look at Shein's data in the country led by Joe Biden, we see that his acceptance is more than good.Specifically, the Chinese clothing company has increased its market share in meteorically, from 7% in January 2020 to 28% in July 2021.

Tal es su presencia en este país que Shein ya se ha convertido en la líder absoluta del ‘fast fashion’ por cuota de mercado, superando a H&M y Zara, que ocupan el segundo y tercer puesto, respectivamente.The company has starred in one of the greatest growth in the recent history of fashion distribution.

This foray into the US market has also been reflected in its income level.Shein closed 2020 with a 10 turnover.000 million dollars, according to various economists, since the company does not give data.The difference with Inditex is not so wide, since the Spanish company invoiced 24.000 million during that same period.

Unlike Galician, Shein is a tremendously hermetic company.In addition, he wants to stay away from the clashes between the US and China.That is why they came to erase a press release where they claimed that its founder, Chris Xu, is a Chinese educated in Washington.But this is not the only thing that Shein hides, he does not want to reveal the origin of his raw materials and how the garments he sells can be so cheap.

This is another of the company's strengths, offer the same products as its competitors, but at a much lower price.An action that is considered plagiarism and for which many companies have already denounced the Asian.

Inditex weapons

Shein is a purely online company.Your business is based on sales through your website.To carry them out, trust the ‘most‘ top ’of each country.In addition, he has found a great niche through social networks, among which Instagram and Tiktok stand out.

The company founded by XU does not have physical stores.However, he knows that, in front of his European rivals, he must approach that other way of purchase.That is why in Spain he has decided to join Shana.The Spanish company has found in Shein a reef to reborn from its ashes.Both companies have reached an agreement to sell their products in one of the stores that the Spanish has in the city.Shein's offer in this establishment consists of leftover stock and returns with important discounts on its original price.

It seems that Shein is one of the main threats to which Marta Ortega will have a face from April 1, when she takes the reins of Inditex.However, the company based in Arteixo seems to have left over weapons to maintain its leadership position in Spain.

Although for sale online Shein Arrae, Inditex has made a breakthrough.The company has reinforced its ‘ecommerce’ and that has resulted in an increase in billing by this route.The Galicians managed to close last year with online sales that represented 25% of the total.

In addition, a key factor that Inditex has and that Shein lacks is a large network of stores.Spain is a market where physical trade still brings together the greatest share of purchases.This is the main asset that Inditex has, with Zara at the head, to get it on.

Another key factor is that it is the Coruña teaching that marks the fashion path.That is, Zara is the first to launch his collections and Shein is the one who replicates it.Although the Asian firm is able to put the garment on the market in less than two weeks, the quality is lower than that of the Spanish.Another point in favor of the firm still directed by Pablo Isla.

When will it be a Shein problem for Marta Ortega?Maybe soon or may never.Although in certain countries as in the US SHEIN has already passed over Zara, it is true that in Spain it is difficult to think that the same can happen in the near future.Our market works very differently from the American.In addition, the Galician firm has spare weapons to continue maintaining its more than sure first position.