Miracle Miles: Shein in Footwear
Who is Miracle Miles?
Miracle Miles (hereinafter referred to MM) was established as a seller of women shoes in 2009.
MM's business has evolved since its early days. Today they go beyond shoes design and sales.
Moreover, its sales channels have been diversified, with products available on Amazon, eBay, Walmart, among others, as well as its own physical stores. MM claims that its business reaches over 10 countries worldwide, serving more than 16 million customers.
MM has been growing rapidly since its foundation, with revenue over 3 billion RMB (US $416.8 million) today.
It has also achieved significant success in fundraising, securing investments from several prominent VC across China. In March 2022, MM obtained a $100 million funding jointly led by Sequoia China and IDG Capital. In December 2023, MM got another $100 million financing, further bolstering its financial position.
Currently, MM ranks as the NO.1 shoe-seller on Amazon. While its sales volume may not rival that of Shein, it has been hailed as the "Shein in Footwear" within China's cross-border e-commerce community
Sky Xu, founder of Shein, does not come from an impressive background. The university he graduated from in China is not well-known. Mr. Xu didn't have any overseas experience before starting his business. In contrast, MM's co-founder and CEO Lin Yang appears to be very international.
He came to the US when he was a teenager. He graduated from Stony Brook University in 2004 with a degree in Computer Science. After that, he worked as an engineer in New York for more than a decade years.
MM's Road to Glory
Reflecting on the rise of MM, it's clear they seized two significant opportunities.
The first time was in 2009, when the US was going through an economic crisis. Decreased wages and rising unemployment forced consumers to tighten their budgets and pay more attention to product quality rather than brand names.
Lin Yang and his partners saw a golden opportunity in the market for cheap shoes. Shoes are a necessity -- even when people are trying to save money, they still need to buy them. On average, North Americans purchase 7.4 pairs of shoes per year, with an average spending of $319 each person. Women show an even stronger demand for shoes, with data showing that the average US woman owns a collection of 30 pairs
Meanwhile, Lin Yang also recognized the value of China's shoe manufacturing industry. China is a major production hub of shoes with export over 10 billion pairs every year, accounting for 82.5% of the world's shoe production capacity. Lin Yang grew up in Fuzhou, one of the main textile and footwear production bases in China. With this backgroud, they were able to utilize Fuzhou's powerful supply chain and cost advantages to create a line of shoes that are both high-quality and affordable.
The second chance came in 2014 when MM made the strategic shift from brick-and-mortar stores to online stores. Back then, the US e-commerce was steadily growing, with platforms like eBay and Amazon surged in sales year by year. Relying on its competitive pricing and varied styles, MM's sales skyrocketed from millions to billions in just a few years
Brand Portfolio
The first brand of MM is Dream Pairs, which means that everyone can find their dream shoes there. Kicking off in New York, Dream Pairs won hearts with unbeatable prices for stylish shoes. From 2009 to 2013, Dream Pairs expanded rapidly with more than 30 stores opened.
MM revamped its game in 2018, no longer playing it safe with just women's footwear. The company has established a brand portfolio revolving around four brands: Dream Pairs, Bruno Marc, Nortiv8, and Dream Pairs Kids. This portfolio encompasses a wide array of product categories, including women's footwear, children's shoes, men's shoes, outdoor shoes, and work boots. By tailoring its offerings to diversified customer bases and scenarios, MM has expanded its user base significantly
Empowered by its robust supply chain and all-round brand portfolio, Dream Pairs quickly made itself a top player in Amazon's footwear segment during the pandemic.
Dream Pairs, the flagship brand of MM, targets the young and fashion-conscious consumers. It releases over 300 attractive designs annually paired with ultimate comfort at average price of $50. Being the NO.1 self-owned brand in female fashion footwear on Amazon USA, Dream Pairs has served over 10 million customers with more than 30 million pairs sold, including sandals, flats, pumps, hiking shoes, boots and more
Bruno Marc caters to the working man aged between 25 and 45, with a selection that takes him from the boardroom to a casual Friday and weekend adventures. It offers a variety of options, such as leather oxfords, casual mesh sneakers, and military boots. They focus on quality and comfort, with a simple yet stylish design
Founded in 2019, Nortiv 8 specializes in a wide range of comfortable and durable outdoor shoes, including hiking boots, work and snow boots, water-proof shoes, and more. While brands like Danner, Arc'Teryx, and Hoka sell men's hiking boots for over $200, Nortiv 8's waterproof are currently on sale for as low as $40 on Amazon. Industry insiders have disclosed that Nortiv8 has been growing at a rate of 200% per year
Dream Pairs Kids is a children's shoe brand with a core positioning of fashion, comfort, and fun. It targets children of different ages, from 6 months to 14 years old, providing them with functional and cute shoes while emphasizing the importance of caring for their foot development
MM is also constantly introducing new brands. In March 2023, they launched the sustainable brand BURUDANI, with a mission to "provide natural comfort for every step." The brand is all about lightweight and comfortable shoes for easy commuting, including flats and high heels.
However, goburudani.com is no longer in operation, and BURUDANI has been integrated into the product line of Dream Pairs brand.
Follower of SHEIN
According to reports, MM currently has over 500 employees worldwide, with over 300 based in the Changsha office in central China. About 80% have a bachelor's degree or higher, and almost half work in internet-related roles. The Changsha office comprises two separate buildings, with rows of computers neatly lined up instead of the usual sewing machines, scissors, fabrics, and rubber found in shoe factories.
MM follows SHEIN’s way to digitalize its supply chain, making effort to achieve a technology-driven and data-support process from design and manufacturing to marketing and fulfillment. As early as 2018, MM developed its own ERP system to deep dive into data about end-to-end processes. After that, MM's online revenue grows exponentially year by year, with $100 million in 2019, nearly $138 million in 2020, and $417 million in 2022.
According to SellerSprite, the best-selling item for Dream Pairs in the last 30 days was a women's chunky heel sandal that was released in April 2019 and sold 2,657 pairs per month. Insider sources revealed that MM's classic products often have an exceptionally long life cycle of around 3~5 years, and even though their 240 classic products only make up about 30% of their total SKU, they contribute to nearly 70% of their sales.
With data-backed insights, MM can rapidly adjust its new product plans in response to market changes, resulting in a remarkable pace of new releases and a high success rate for bestsellers.
To keep consumers engaged, MM launches nearly 300 new products each year, leveraging data intelligence to predict fashion trends and achieving a remarkable 60% success rate for new offerings.
Besides products R&D, technology is also the force behind MM's globalized warehouse and logistics network. With partnerships across dozens of international shipping routes and its own warehouses, MM has created an intelligent platform with visualized data for warehousing and shipping.
MM began its journey with brick-and-mortar stores and then embraced online markeplace. Now it is returning to offline sales. At the end of October 2023, Dream Pairs opened a store again in New York's Bay Plaza Shopping Center, with the aim to open 20 stores in the US by the end of 2024, marking a triumphant return to its roots.
All images in the article are from Miracle Miles official website