SHEIN vs. CHICJOC

CHICJOC’s Ambition Surpasses SHEIN: Entering the High-End Market Ranging from $130 to $1,200

In 2020, a Chinese fashion e-commerce brand, relatively unknown even in the domestic fashion industry, caused a significant stir in overseas markets.

The Indian government suddenly announced a comprehensive ban on dozens of Chinese apps, including TikTok and SHEIN—a Chinese fashion company.

For a Chinese fashion company to carve out a niche in the European and American markets was already rare. However, the fact that SHEIN was relatively unknown in its domestic market made the situation even more surprising. At that time, SHEIN had 11 million followers on Instagram, surpassing Boohoo and Fashion Nova, while Zara held 39.9 million followers.

In the subsequent four years, while European and American fashion companies struggled under inflationary pressures and geopolitical turbulence, SHEIN continued its rapid expansion, sparking heated discussions across the global fashion industry. However, once competitors emerged, industry leaders began their defensive counterattacks, signaling the start of true competition.

As of today, four years later, SHEIN has grown its followers to 33.9 million, while Zara now boasts 62.1 million followers. There is still a gap in both sales performance and brand influence.

Now, SHEIN can no longer play the role of a low-profile challenger. Under the scrutiny of the global fashion industry, SHEIN is cautiously preparing for its IPO—an unprecedentedly bold move for a Chinese fashion company.

For most Chinese fashion brands, overseas expansion often stalls after one or two store openings. For instance, Bosideng’s flagship store in London, opened in 2012, closed in 2017 but reopened in 2022. Similarly, MO&Co. entered London’s Selfridges in 2015, UR opened a store in London’s Westfield Mall in 2018, and ICICLE launched a 700-square-meter flagship store on George V Avenue in Paris in 2019.

In 2024, yet another domestic fashion brand is showing ambition in the overseas market.

The Chinese womenswear brand CHICJOC opened its first overseas direct-operated store at the Beverly Center in Los Angeles on November 15, followed by a second store in Fashion Island, a high-end shopping center in Newport Beach, California, on November 21.

After opening two stores in the U.S. market, the brand announced plans to open physical stores in Paris, Milan, Tokyo, and other global fashion capitals, signaling its determination to penetrate the international market.

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CHICJOC store in Newport Beach, California

Notably, CHICJOC has also launched an overseas independent website this year, offering global delivery services.

Launching an independent website is a significant milestone, marking CHICJOC’s transformation from being perceived as a “Taobao brand” to taking a more serious position in the global market. It also indicates that, unlike domestic brands that stop after a brief foray into overseas markets, CHICJOC is adopting SHEIN’s ambitious approach to conquer a broader international audience.

CHICJOC’s ambition goes even further than SHEIN’s, targeting the higher-priced market segment ranging from $130 to $1,200. While CHICJOC doesn’t aim for the absolute lowest prices, it still emphasizes value for money, leveraging price advantages.

Before this overseas expansion, CHICJOC opened more than 40 stores in China within two years. The brand launched its first offline store at Nanjing Deji Plaza in May 2022, followed by openings in high-end shopping malls such as Shanghai Grand Gateway 66, Guangzhou Parc Central, Chengdu IFS, Shenzhen One Avenue, and Beijing Chaoyang Joy City.

According to Bloomberg, CHICJOC’s annual revenue has reached RMB 978 million, just shy of the RMB 1 billion milestone. Sources suggest that CHICJOC’s offline expansion is primarily supported by private equity investments, although the brand has not disclosed any specific deals.

CHICJOC, founded in 2015, began as a Taobao store and has since accumulated nearly 2.6 million Taobao followers. Over the past two years, the brand’s community influence has extended to Xiaohongshu (Little Red Book), sparking discussions among consumers. Many customers share new product information before official launches, while Key Opinion Consumers (KOCs) provide detailed reviews after each product release.

The secret to CHICJOC’s highly engaged community lies in one core advantage: its fabric.

CHICJOC proudly showcases its collaborations with luxury brand fabric suppliers on its independent site, emphasizing that its suppliers also work with high-end labels. In its early stages, CHICJOC openly highlighted the use of fabrics and designs similar to those of luxury brands like The Row and Loro Piana, but at far more accessible prices.

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CHICJOC collaborates with the same fabric suppliers as luxury brands

Adopting a minimalist fashion trend, using imported fabrics, and mimicking the patterns of high-end brands, CHICJOC minimizes design and marketing costs. By eliminating middlemen and brand premiums, the brand maintains a 2.5x markup across online and offline channels, compared to the typical 7x–10x markup in large shopping malls for womenswear.

CHICJOC is a standout representative of the recent “affordable luxury” trend.

By focusing on fabric quality, proven designs, and simplicity, CHICJOC has achieved what many brands fail to do in 20 years—within just a decade. However, aspects sacrificed early on for growth may eventually become necessary challenges.

In 2022, CHICJOC expanded to physical stores. Reports on the expansion sparked debates, with some questioning whether high-end shopping malls should welcome Taobao-originated brands. Critics argued that such brands lack originality and are known for openly mimicking luxury brands, potentially undermining the standards and values of high-end malls.

However, market feedback revealed a surprising sentiment. For years, China’s online and offline womenswear markets seemed like parallel universes. An industry insider remarked that many Taobao brands achieving annual sales of RMB 1 billion remain unknown to traditional retail players. Conversely, offline-origin brands rarely venture significantly into e-commerce.

Transitioning from online to offline retail demands high product quality, precise inventory management, and robust operational capabilities—all challenges CHICJOC faces as it moves into high-end malls.

After opening 40+ stores and stepping into the U.S. market, CHICJOC’s journey showcases both its boldness and the challenges ahead. Despite success in live-stream sales and establishing a foothold in malls, the brand must address issues in product design, marketing, and global positioning to compete in a new and demanding landscape.

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CHICJOC store at Grand Gateway 66, Shanghai

While CHICJOC’s journey represents an opportunity for growth, its overseas expansion may expose weaknesses in brand storytelling and product uniqueness. Competing against well-established global brands, CHICJOC faces a steep climb to build its narrative and engage diverse global consumers effectively.

Whether CHICJOC can rise to the challenge remains to be seen. For now, its ambitious path marks one of the boldest moves for a domestic Chinese fashion brand on the global stage.

This is a perilous journey.