How can SHEIN and TEMU keep prices so shockingly low? – Justine Leconte officiel

Video

https://www.youtube.com/watch?v=l6xWs5P7Llk

Summary

### Summary
The text discusses the cost structure of fast fashion brands like Zara and H&M, as well as ultra-fast fashion brands like Shein and Friends. It highlights that traditional fast fashion brands struggle with increasing costs and rely on consumers buying more clothes to stay profitable. The cost breakdown includes labor, manufacturing costs, overhead, factory margin, transportation, agent fee, brand’s margin, and wholesale price. Ultra-fast fashion brands have a significantly lower cost structure due to eliminating the retailer step, allowing them to sell t-shirts at low prices like €5. These brands focus on selling millions of units with tiny margins, which is essential for their business model.

Highlights

• Fast fashion brands struggle with increasing costs and rely on consumers buying more clothes to stay profitable
• Ultra fast fashion brands have a lower cost structure by eliminating the retailer step and using low costs
• Traditional fast fashion brands sell t-shirts at €20.50, while ultra-fast fashion brands sell them at €5

Key Takeaways

• Fast fashion brands need to keep costs down and rely on consumers buying more clothes to stay profitable
• The marketing strategy of these brands has been discussed in a separate video with 340,000 views