Shein Goes Physical in France | Fast Five Shorts
This segment from the Omni Talk Retail Fast Five podcast, sponsored by the A&M Consumer and Retail Group, Mirakl, Ocampo Capital, Infios, and Quorso, covers Shein's first permanent move into physical retail with shop-in-shops across French department stores.
Chris rates this move a 6.5 out of 10, praising Shein's ability to test demand in physical locations while leveraging their fast-fashion manufacturing prowess. Anne sees additional benefits: attracting aspirational shoppers to luxury department stores, gathering in-person shopping data, and potentially addressing sustainability concerns through in-store returns and recycling. Is this the blueprint for digital-first brands entering physical retail?
For the full episode head here!
#shein #fastfashion #physicalretail #shopinshop #omnichannel #fashionretail #retailexpansion #departmentstores #retailstrategy #fashioninnovation
Shein is making its first permanent move into physical retail.
Speaker AAccording to Chain Storage, the Asian online fast fashion giant will pilot six shop and shops across France, starting at BHV Marais in Paris, followed by five more to be open in Galleries Lafayette stores.
Speaker AReported by fashion network.com in the opening of the shops, Sheehan has teamed up with Society de Grand magazine.
Speaker AI'm.
Speaker AThis is awful.
Speaker AI cannot, I'm sorry, every French person listening.
Speaker BYeah, for those listening, I purposely put this headline number five instead of number four so Anne would have to read it.
Speaker AOh my gosh.
Speaker AIt's just, I mean, cover your ears, people.
Speaker AAnyway, the retail property company that operates BHV Murray and several Galleries Lafayette stores following sale and affiliation agreements with the Galleries Lafayette group, the report said.
Speaker AChris, this is also going to be our A and M put you on the spot.
Speaker AAnd hopefully they are not French speakers and putting any more French words into this headline.
Speaker BActually more I could have put in here than I did.
Speaker BAnd actually.
Speaker AOh, I know there were a lot of them in there.
Speaker AThere were a lot of them in there when this headline came across.
Speaker AAll right, Chris, A and M wants to know, in the age of digital first shopping, what will it take for Sheehan and other retailers looking to follow suit to reimagine brick and mortar as a strategic extension of fast fashion and consumer.
Speaker AConsumer immediacy?
Speaker BThat's.
Speaker AGo ahead.
Speaker BYeah, that's a really interesting question.
Speaker BIt's a different angle than I expected to take on it.
Speaker BYou know, I, I actually, I like this move from Sheehan and I think, you know, on a scale of one to ten, I think I'd probably put it at six and a half.
Speaker BI think this, I think the headline's a little misleading because it's saying they're opening up a bricks and mortar operation permanently, which, based on what I'm reading in the tea leaves, it sounds like they're just, you know, being placed inside a department store more.
Speaker BSo would you agree?
Speaker BLike a shop and shop inside a traditional department store.
Speaker ASo it's probably is very.
Speaker AYeah, very common in France.
Speaker AI mean, there is lots of shop and shops from, you know, boutiques for fragrance to independent designers.
Speaker ALike that's a very common thing where you would have a permanent setup in all these French department stores.
Speaker ASo, yes, that makes complete sense.
Speaker ABut I wouldn't call it a pop up necessarily or like temporary at all.
Speaker BYeah, no, it sounds like it's a permanent.
Speaker BI mean, their emphasis was on it's a permanent location.
Speaker BNow.
Speaker BThat was the key thing.
Speaker BSo like the you know, so, but the point I don't know is like, is it a wholesale relationship with the department store or is it like they're buying the inventory and running the shop in shop, so to speak.
Speaker BSo here's the thing, here's the thing.
Speaker BI don't think it actually matters.
Speaker BAnd so that's what I like about this is it's showing.
Speaker BSheen is saying, look, we've got this really unique capability with our technology and our manufacturing infrastructure to understand potentially better than other people what items people are going to want for the upcoming season.
Speaker BAnd then we're going to take a position on them, either with you via wholesale or on our own via the shop and shop to understand how much value we can extract from the marketplace.
Speaker BI think that's the lesson here to be learned that is really intriguing to me and that's, I think what inherently gets at A&M's question is there's a lot to, there's a lot to think about within this headline.
Speaker BAnd I think that's really important when you think about, okay, what does she inhabit its disposal, what is it doing and where can it go?
Speaker BAnd so that's my take here.
Speaker AI think this is a brilliant idea for more reasons than that.
Speaker AI mean, I think it gets you traffic.
Speaker AI mean there's a certain customer that can go into these French department stores and when your, your other galleries or your other Shopp shops like I was talking about earlier are Ceson or Louve or Diptyque, like that's a high price point.
Speaker AI think what you're able to do now is you're getting those aspirational shoppers in there with Shein and you're giving them something that they can take away from this very luxurious, high end shopping experience that's not going to break the bank.
Speaker AI mean we started to see this when you and I were in Paris a couple years ago and they started bringing resale into some of these stores and like Samaritan had like a whole area of resale on one of the floors so that you could start to get people starting to enjoy some of these products and that shopping experience and then maybe coming in for like a gifting thing or for the holidays and shopping at the other stores that are available.
Speaker ABut I think this is a brilliant thing.
Speaker AIt gives she and so much more data about how shoppers and where their shoppers are shopping in person in physical retail.
Speaker AAnd not to mention there is also the sustainability angle of this, Chris.
Speaker AAnd I think that this could be an interesting play that they didn't really touch on in the article, but she is under so much, well, she is under so much pressure for the textiles waste that they're putting out into the world because of their rapid manufacturing.
Speaker AIf people get the products at home, it's not easy to exchange that or not worth the money to exchange it.
Speaker ASo they just end up becoming waste.
Speaker AAnd so I'm curious to see that if they have these shop and shops, will they start to see people coming in for a scenario where they might be able to bring in their Shein product that they didn't like or, or was the wrong size or didn't fit as they expected and then that could be recycled and they get a credit to shop the Shein in the store or something like that.
Speaker ALike, I still think that France especially is going to be very tight on Sheehan and watching the waste that they, they put out from being in physical retail there.
Speaker ASo I think that could be an interesting play for them too to start to test and see like what kinds of things we do in store that reduce our sustainability footprint.
Speaker ASo that's another thing.
Speaker BYou had me up until sustainability.
Speaker BI think putting fast fashion into more stores and more units through that fast fashion process has me a little skeptical of that argument.
Speaker BBut I 100% agree with everything you said up until that point.