Do Judge a Book By It's Cover

People say don't just a book by its cover, but that's what happens more often than not.

Brand and image perception matter.

Positive brand perception leads to customer loyalty and word-of-mouth referrals and can even allow a company to charge premium prices.

Ultimately, branding defines a company’s identity and impacts its market success.

Take Shein, the fast-fashion group currently seeking a public listing in either London or New York.

It originated in 2008 in the eastern city of Nanjing, and its supply chains, warehouses, and inventory remain in China.

In 2021, its enigmatic founder, Sky Xu, who also goes by the names Xu Yangtian and Chris Xu, relocated himself and the company’s headquarters to Singapore.

Here's the only decent pic of Sky Xu you can find online..

According to its website, Shein, valued at $66bn in its last private funding round, now defines itself as a “Singapore-headquartered global online fashion and lifestyle retailer.”

Singapore is a nice (if a little boring) place. It's also the 'Switzerland of Asia,' with a reputation for neutrality.

Why did he do this? Comes down to perception.

Singapore will be viewed as a respected jurisdiction by the company’s customers, business partners, and potential investors.

China, on the other hand, is still largely an opaque and misunderstood place (rightly or wrongly) in the eyes of most of the world.

There's also a business case. In addition to having stable relations with both China and the West, many third-country groups tend to be members of free trade areas.

This can guarantee access to large Western markets at zero or low tariffs.

Moving away from China and its roots is also a way to shift focus away from its founder.

Shein’s website does not include a photograph of Xu, who has not given a media interview or posted online for eight years.

According to several people who have worked with him in recent years, he flies so under the radar that employees joke that they do not recognize him at the office.

But back to the brand and image conclusion.

Good branding and image sets a business apart from competitors.

- Communicates its values

- Creates a lasting impression

- Influences purchasing decisions

- Defines the brand story moving forward