Explore SHEIN's new shopping experience: the first "not for sale" concept store opens in Harajuku, Tokyo!

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In the wave of the digital age, the convenience of online shopping and a wide range of products allow people to enjoy unlimited convenience, but physical stores still have an irreplaceable important function.

In brick-and-mortar stores, consumers can touch and try on products in person to get a feel for their texture and fit. In order to take into account the convenience of online shopping and the advantages of physical stores , business opportunities in " concept stores" that do not sell goods have begun to rise.

SHEIN, an apparel retailer sweeping the European and American fast fashion markets, is an e-commerce platform for fast fashion apparel. It will officially enter Japan in November 2022 and open its first physical store on the streets of Harajuku, Japan. The store only displays and tries on products. , does not sell directly, and must scan the QR code of the clothes for online shopping. This "physical concept store" model attracted 4,000 people to visit on the opening day.

This article will discuss SHEIN  as a brand leading a new type of shopping trend and how it successfully attracts young consumers. Such a form of physical store that is not oriented towards "sales" is becoming more and more popular in Japan. The following Let's analyze the new business model of "concept store".

SHEIN Concept Store in Harajuku, Tokyo

SHEIN opened a store-type SHOWROOM in Harajuku, Tokyo, which is "only for display and not for sale".

The notice board at the entrance reads "This store is for display purposes and does not sell any products." You can experience and try on SHEIN's clothing up close. If you need to purchase products, you can order through SHEIN's official website.

The store has 2 floors, displaying women's clothing, men's clothing, as well as children's clothing, baby products, and accessories.

1F:

2F:

3 fitting rooms:

A variety of products are displayed in the store. You can touch, try them on and feel the quality of the products in person, but they are not sold on site. The way to buy is to scan the QRcode on the label to SHEIN's official website.

How to buy online?

To purchase products, you need to scan through the QRcode APP:

▲I scanned with this APP.

If you are an ios user, you can turn on the built-in camera scan.

Scan the QR code

Scan the QRcode on the label, the scanner will automatically recognize the QRcode and scan it. It only takes 1 second to decode successfully. When the screen shown on the right appears, click the "Open Web Page" button.

 

Open the Web page

Open the SHEIN webpage, and immediately get detailed information about the style, including size, material, price, etc. At the same time, you can also view other colors or styles of the style, and directly purchase the selected product online.

Participate in the Gacha Sweepstakes

Under the guidance of the store staff, scan the QRcode on the activity board to participate in the gashapon lottery. As long as you take photos in the store and upload them to social networking sites, you are eligible to participate in the event. The participation of customers on site is very enthusiastic!

It is worth mentioning that it is not easy for us foreigners to type text in a non-native language. By scanning the QR code to get the text content, this APP has a button to copy the content, you only need to press a button to copy, complete the check-in process to exchange for gifts , which saves me a lot of time!

After completing the check-in, the clerk will give you a "reward card". With this card, you can go to the gashapon area on the 2nd floor to exchange for prizes.

There is a long queue at the gashapon area on the second floor , and everyone is waiting for the lucky draw, which shows that this event is very attractive!

Hand the card to the clerk to draw a prize.

Target the young consumers of Generation Z

As a brand leading the new shopping trend, SHEIN has successfully attracted many young consumers, especially Generation Z. The key to this success is SHEIN's deep understanding of Gen Z's needs for fast fashion, online shopping and personal style expression.

The year of Generation Z?

Generation Z refers to those born between 1997 and 2012 , also known as millennials or post-millennials. They are currently the youngest group of consumers, and they are very familiar with the use of technology and digital media, and show a high degree of dependence and enthusiasm in this regard.

Generation Z grew up in the digital age, and they are familiar with and good at using online resources. SHEIN capitalized on this trend and built an intuitive and easy-to-use online shopping platform.

1. Super low price

Compared with traditional physical retailers, SHEIN does not need to pay high rent, labor costs and inventory costs. As a brand whose main sales channel is the Internet, SHEIN can save these traditional retail costs and reflect the cost savings in product prices.

For example, five rings are priced at ¥80 (about $0.5), and one dress is only ¥996  (about $7). It makes people feel that "because it is very cheap, it doesn't matter if the quality is not good or you don't like it when you buy it", and then add the words "takami える" and "プチプラ" that are popular in Japan recently. It is cheap but with texture, especially for young consumers . attractive.

2. Overwhelming community marketing

SHEIN utilizes digital marketing and social media strategies to effectively promote brands and products at low cost. Through cooperation with influencers and fashion bloggers, advertising on social media and brand cooperation. For example: "What can I buy for $100?" With TikTok's relatively low-cost and easy-to-shoot features, it can quickly and widely attract a variety of customers.

The customer group targeted by SHEIN is people who are less sensitive to sustainability and labor conditions. This group cares more about how to dress stylishly without financial burden, and tends to buy a lot of clothes at very low prices in order to get the following social status. Be able to show off the most trending clothes in photos on TikTok or Instagram.

3. Supply chain

The rapid production of SHEIN's supply chain is mainly due to the combination of vertical integration, digital production management, efficient supply chain partners and fast fashion mode. This enables SHEIN to respond to market demands with swift speed.

According to "Business Insider", it only takes 10 days for SHEIN 's items to go from design to output, which may take 5 weeks compared to Zara. SHEIN cooperates with suppliers to produce products in small quantities first. These products will be verified in the market to test consumer demand and response to the product, and after understanding consumer preferences and trends, the design and scale of the product will be adjusted according to demand.

Differences between traditional consumption patterns and new shopping patterns

To compare the differences between traditional consumption patterns and new shopping patterns , the following aspects can be explored:

1. Shopping experience:

• Traditional: When shopping in a physical store, customers need to spend time finding products, trying them on or experiencing them, and completing the purchase on the spot .
  
  
• New style: "Pure display, not sales" store-type SHOWROOM provides a shopping environment without sales pressure. Customers can easily observe products, try them on and experience them without making immediate purchase decisions.

2. Purchase options:

• Tradition: When customers shop in a brick-and-mortar store, they can buy what they want right away and take it home.
  
  
• New style: "Pure display not for sale" store type SHOWROOM cannot be purchased on site, customers need to enter the online shopping platform by scanning QRcode or other methods to make purchases.
  
  

3. Cost savings:

• Tradition: A lot of storage space to store goods, which leads to high storage costs, and the price will be reflected in the product.
  
  
• New style: "Pure display not for sale" store-type SHOWROOM, the inventory is kept at a low level, thereby reducing storage requirements and related costs, helping to avoid excess or insufficient inventory, thereby reducing inventory costs and manpower Waste of arrangement.

Summarize

To sum up, SHEIN, as a brand leading a new shopping model, has successfully attracted the attention and love of Generation Z.

The success of SHEIN lies in adapting to the consumption habits of the digital age, utilizing the advantages of physical stores, and attracting young consumers with innovative supply chain management and digital shopping experience. It is believed that such a new shopping model will become more popular in the future.

SHEIN TOKYO SHOWROOM
Business hours: 11:00-19:00

Address: 〒150-0001 Jingumae 4-chome 25−9 b-town Jingumae, Shibuya District, Tokyo

Google Maps: (link)

Source: Bloomberg Second Measure , NSS Magazine

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