In the global fashion industry pattern, the Chinese brand SHEIN has subverted the traditional industry rules with its innovative practice and deeply optimized "small order quick return" ** chain model, and has successfully jumped to the top four fashion brands in the world. Different from the seasonal design and mass production mode of the traditional apparel industry, SHEIN pushes the concept of "small orders and quick returns" to the extreme, using cutting-edge digital technology and big data analysis capabilities to achieve rapid response, accuracy and efficiency to consumer needs in the rapidly changing market environment of fashion trends.
The traditional apparel industry often designs and mass-produces future season's products months in advance, which is susceptible to seasonal fluctuations in consumer purchasing behavior and rapid changes in fashion trends, resulting in a large number of unsalable products. Fast fashion brands such as Zara and H&M have taken the lead in implementing the "small orders and quick returns" strategy on a large scale in the mass market, adjusting their designs by capturing trends in real time, and using agile production lines to trial produce small batches of merchandise, which will be delivered to stores within two weeks, and flexibly adjust production according to market feedback.
However, SHEIN has taken this step further and taken the concept of "small orders and quick returns" to the extreme, successfully finding a delicate balance between fashion and high cost performance, bringing consumers a surprising experience that surpasses other brands. To this end, SHEIN has established a set of intelligent fashion analysis system, continuously monitoring the massive information of social ** and consumers' in-depth feedback on products, and accurately refining real-time trend trends including silhouettes, colors, patterns, popular elements and **sensitivity, so as to guide accurate ** sales. Initial production volumes are set at 100 to 200 pieces per SKU, or even lower.
In order to achieve this efficient operation model, SHEIN has built an independent and high-speed first-chain system, with a professional team managing all links, so that the brand can quickly respond to market demand and ensure product quality. At the same time, SHEIN has fully realized the digitalization of business processes, from trend monitoring, planning and development, order placement, manufacturing to warehousing management, etc., and the internal management is fine and rigorous, which has significantly improved the overall efficiency and response speed.
Inventory pressure has long been a pain point for global apparel brands, with even fast-fashion giants such as H&M facing up to $4 billion in total inventory, accounting for more than 30% of total sales. There is an irreconcilable contradiction between the unpredictable market demand and the traditional production chain that follows a certain plan and production cycle, and the inventory problem has become the biggest challenge and the most concerned issue for the entire fashion industry.
However, in such an industry context, SHEIN, a Chinese global company, has successfully broken this shackle with its innovative practice and demand-driven flexible chain model of refined operation. Through the in-depth use of digital technology, big data analysis and real-time monitoring of market dynamics, SHEIN has achieved an accurate grasp and flexible response to consumer needs, greatly shortened the time cycle from design to shelves of goods, and controlled the initial production volume at a very low level. This ultimate pursuit of efficiency has reduced SHEIN's inventory rate to low single digits, greatly reducing inventory costs, and thus providing consumers with cost-effective fashion products.
As one of the world's four major fashion brands, SHEIN has created a new image of China's global enterprises on the world stage with its subversive first-chain management model and in-depth practice of the concept of "small orders and quick returns". SHEIN's successful practice proves that only by having a deep insight into consumer needs, quickly responding to market changes, and daring to challenge and subvert traditional operating models, can enterprises remain invincible in the highly competitive global market.