We'll be hosting a deep dive Black Book next Tuesday, March 12th at 12:30ET to review the latest on SHEIN. Not a pre-IPO deck, as the timing and actual occurrence of that event is still very much in the air. When we do present our specifics on what to do with SHIEN and what it's worth, we'll enlist Felix Wang – our China and now Global Tech Sector Head – to add his expertise there. But rather, in this deck, the Retail Team is going deep on SHEIN's business model, core demographic, where it's making competitive inroads, who's 'protected' and who is most at risk. To be clear, this model is the biggest deflationary force since the Fast Fashion retailers like H&M, Forever 21 and Zara disintermediated the specialty apparel retailer space 20 years ago, which is the group that in turn disintermediated the Department Stores 15 years prior. We'll dig into different demographic cohorts, who is most inclined to buy into the 'cheap for cheap' value proposition, and where the biggest TAIL risk lies. We'll also go through the economics of buying, selling, manufacturing and importing apparel, and how they're likely to change as SHEIN scales. We'll also go through SHEIN's strategic direction, and its partnerships and potential acquisition targets. We're mid-way through conducting another consumer survey on SHEIN, which will gauge the rate of change in who its penetrating after over a year since we last went there – and interestingly, who says 'I would never support sweat shops’, vs those that that will ultimately buy a sweater from SHEIN for $5 when presented the opportunity. (Ideals and principles don't always hold up when outrageously cheap prices come into the equation). This should be a great look into the implications of one of the biggest deflationary forces the industry has ever seen.
Relevant Tickers: Virtually Everyone That's In the Business of Selling Apparel: H&M (HNNMY), GPS, ANF, AEO, CURV, ATZ, M, KSS, DDS, JWN, Inditex (IDEXY), OXM, RL, ROST, TJX, BURL, ASOS, RVLV, CTRN, Fast Retailing (FRCOY), Primark (ABF-LON) and many more...
Call Details:
Tuesday March 12th at 12:30pm ET
Live Video Link CLICK HERE
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