Shein Dominating Shopping Habits of Jordanians No Response to Retailers’ Complaints

Bedwan: Noticeable Decrease in Purchases from Physical Stores Due to Shein Online Stores

 Alanbat- Zeinah Albarbour

Translated by Ahmed Afaneh  

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Shein platform achieved such a huge popularity among Jordanians in the last few years mainly during the Covid 19 lockdown period. It was their main and most important site at the time. The site managed to maintain its popularity till today. However, is there a negative impact upon local merchants and physical stores due to Shein online purchases? 

And why is Shein seemingly considered the best choice despite the presence of big and diverse markets locally?

Al-Anbat asked several Jordanians about the same subject to know the reasons why they constantly buy from that famous Chinese site. One lady said it "displays products, not available in local markets. Thus, there is a real diversity in items and products that suit all ages”. Another lady spoke about the good quality of its original products. "One cannot find them in local markets. Also, the site has a good reputation that has been able to keep over the span of many years.” 

A lady identified by her initials: M.S, said that the products available at the Shien site , are more attractive and much cheaper than the ones in traditional markets. Also, it is easy to make orders from home, with so many different sizes, colors, and models for all items. Plus, there is no commission for every purchase. Another Jordanian said that numerous positive feedback from people about the good quality and diversity motivated him to buy from the site. Also, he noticed the cheap prices of products when compared to the traditional markets.

One girl said that the things that attracted her most are the reasonable prices, the multiple discounts on almost all products and the fast delivery. She explained that she first ordered only two accessory items to try them on and to minimize any possible loss if products were no good. It turned out that the product was of good quality when compared to its price. She described the product as excellent.  ‎

Al-anbat moved on to conducting the survey with shop owners to know the effects on their businesses. Several of them said that Shein and other online stores with their mail packages, are a hindrance to them profiting and a real threat to traditional shops. They said they are not treated equally with these sites when it comes to taxes. Other shop owners believe that online shopping contributed to the increase of the number of companies providing mail services. Mainly they provide delivery services to people ordering products through online stores and phone applications. One shop owner said that mail packages have inflicted some great losses upon them since they enter Jordan at minimal fees and no restrictions,contrary to the case of shop owners who import similar products from different countries of origin at a high rate of taxes and customs fees as well as many restrictions and inspections.    

Nemer Badwan ,a Ph.D. in Economics and Finance explained  to Al-anbat  that Shein company has done some excessive transactions in the Jordanian market and this led to less traditional shopping of clothes and housewares. More people are buying these items from the Shein site in particular. There was a huge decrease in purchases from traditional stores as well as a recession in the manufacturing sectors of clothes and housewares.  

The whole thing is mainly about competition between Shein and the different online shopping platforms like, Amazon and Ali Express. At a time when there is decline in the market of retailers globally amidst uncertainty about the economy and low spending by consumers in some markets. He added that "it is considered one of the biggest fashion retailer companies online. It managed to change its operations from traditional methods of selling clothes with trademarks to online shopping. This enabled merchants to sell their merchandise to their customers directly from the Shein site. It is a fast-growing company. The location of its headquarters in Singapore help diversify its supply chain away from China where it was originally founded. Manufacturing first started in Türkiye in midsummer. Its warehouses are in Poland. From Poland, its products are shipped to shoppers in western Europe according to a pact. The supply chain is mainly present in Guangzhou Province in southern China, the main manufacturing hub, with a network of more than  three thousand suppliers. 

The company has grown fast to become the best retailer online. Its business model offers a large variety of the latest fashion trends at cheap prices. This led the company to have an estimated value of 100 billion dollars. Here in Jordan the site is frequented by many Jordanians. The company is supported by big investors like Sequoia Capital China and General Atlantic. The company was able to generate 24 billion dollars in revenues in 2022.

Shein site is an online store that was founded in China in 2008 and sells products and clothes online. It wasn’t at first known very well in the Arab world but in 2015 it became known in Saudi Arabia and grew popular there. Later other Arab countries used the site and now it is operating in 220 countries.

It is worth noting that Shein was completely boycotted by the authorities in Saudi Arabia for the reason of supporting homosexuals.