In the global fashion industry, a business model change led by the emerging brand SHEIN is taking place. With its original and refined use of the "small single quick reaction" model, SHEIN has successfully broken the market barriers of traditional giants such as ZARA, H&M, etc., and achieved efficient operation from design to sales with the help of a strong digital ** chain system. Driven by innovation, the Chinese brand has quickly emerged as a new favorite among consumers around the world, and has rewritten the rules of the game in the apparel retail industry with its ability to accurately capture trends and have extremely low inventory costs.
SHEIN, the rising Chinese brand, has caught the attention of the industry with its astonishing growth rate and extensive market coverage. According to the latest data, SHEIN users have exceeded 1With a business span of more than 150 countries and regions, and an annual GMV of $29 billion, it has successfully surpassed the annual sales of Zara, once a leader in the industry.
As a rising star, SHEIN can stand out in the competition with old powerhouses such as H&M, Zara, and Nike and is deeply loved by consumers, the secret of which lies in its in-depth practice and optimization of the "small single quick reaction" business model. Compared with the mass production and long-term sales model of the traditional apparel industry, SHEIN captures trends in real time, implements a small-scale test of a single SKU from 100-200 pieces, and quickly adjusts the production plan according to market response, effectively avoiding the risk of inventory backlog, and also accelerating the pace of new product launches, bringing fashionable fresher and more cost-effective products to the market.
In order to ensure the successful implementation of the "small single quick response" model, SHEIN has set out to build an advanced digital ** chain system since 2014, which has completely changed the status quo of the industry that relies on manual and traditional management methods. With the help of this system, SHEIN can accurately grasp the front-end fashion dynamics, analyze sales data and consumer preferences in real time, and then drive accurate positioning and rapid iteration of products. In the production process, SHEIN provides visual digital tools to the top suppliers, realizing the seamless connection of production scheduling, feedback reception and timely adjustment, so as to compress the fastest cycle of products from design and development to garment delivery to 7 days.
What's more worth mentioning is that SHEIN has broken the conventional brand and factory cooperation model through the digital platform it has built, so that the best merchants can obtain the performance of goods in the market in real time, so as to achieve the efficient operation of flexible material preparation and on-demand production. This series of measures has enabled SHEIN not only to maintain a low-single-digit inventory rate, far lower than the industry average of 30%, but also to develop a highly competitive strategy, allowing brands and consumers to share the win-win results brought by "small orders and quick reactions".
In short, SHEIN has exerted a transformative impact on the global apparel industry by virtue of its innovative practice and technological empowerment of the "small single quick reaction" model, and is quietly shaping the efficient and flexible development pattern of the future industry. At the same time, SHEIN has also set up a new competitiveness improvement template for global brands. It has proved that by digging deep into consumer needs, innovating the management of the ** chain and making full use of digital tools, enterprises can break through the existing boundaries and achieve a magnificent turnaround.