In the context of global economic integration, the manufacturing industry is facing the severe challenge of how to get rid of the bottleneck effect of the "smile curve" and climb to the two ends of the industrial chain with higher added value. As an important force in the global manufacturing industry, China's fashion industry takes the "SHEIN chain" as a breakthrough point, vividly interpreting the new ideas and practical paths of transformation and upgrading.
As the apple of the fashion industry, the "Shein Chain" behind SHEIN cleverly integrates digital technology with the social operation model, successfully breaks free from the shackles of the traditional chain model, and realizes the innovation and upgrading of a series of links from flexible chain to brand building and technology research and development.
The most important enlightenment of "SHEIN Chain" for other industries in China is to form a new value chain with new models such as digitalization and socialization, with two changes: one is to expand the market cake; The second is to reshape the rules of the game, change the distribution logic of the value chain, climb from the bottom of the smile curve to the technology and brand at both ends, and gain more right to speak
First, based on the digital system to formulate production plans, the Shein chain realizes flexible on-demand production, improves industrial resilience, and solves the capacity planning problem of "plans cannot catch up with changes" in the traditional manufacturing industry. On the one hand, it better meets the increasingly personalized, flash and diversified fashion needs of consumers in the global market, especially young people; On the other hand, let the commodity inventory and raw material procurement of the first merchant be kept in an ideal state.
The Boston Consulting Group released the "Agile Chain: A New Source of Competitive Advantage in the Fashion Industry" report on "Shein Chain" as a benchmarking study, which puts forward the most important assessment indicators of fast fashion enterprises: the response speed of market demand, capital utilization efficiency, inventory turnover cycle, and the ultimate cost performance. In order to achieve the best level in these links, it is necessary to rely on an efficient and agile ** chain to achieve a real balance between supply and demand. SHEIN has created the most agile on-demand flexible ** chain in the industry's history, and the "SHEIN Chain" enterprises have greatly improved their operating efficiency and revenue, while their risks and costs have been greatly reduced. The resilience of the fashion industry chain has naturally been greatly improved.
Second, SHEIN promotes the transformation and upgrading of domestic industrial chain partners through technical tools and management methods, enhances comprehensive competitiveness, and obtains the growth of "soft power". For the enterprises in the "shein" chain, orders are "fish", and the "soft power" of technology, management and other operations is "fish".
SHEIN has a three-dimensional support system for ** merchants, including providing transformation funds, opening up digital technology and organizing daily training. In Guangzhou Shein Garment Manufacturing Innovation Research Center, which covers an area of nearly 60,000 square meters, the ** Chamber of Commerce regularly participates in various trainings such as product quality inspection, operation management, production scheduling, operation stocking and benefit management.
By the end of 2023, SHEIN has helped more than 130 cooperative factories upgrade 430,000 square meters of factory buildings, benefiting 220,000 people. The factory transformed by SHEIN has not only cultivated the awareness of digitally empowered production and procurement, but also comprehensively upgraded the site selection, environmental layout and supporting facilities of the factory, and has been integrated with modern management enterprises in all aspects. For China's clothing and fashion industry chain, such "soft power" is more valuable, and it is also a measure to truly implement the upgrading of the industrial chain.
Third, the "SHEIN Chain" cooperative enterprises are not just passively "sharing the cake", but taking the initiative with SHEIN, showing their strengths, and going to sea together to "make the cake bigger". In the "SHEIN Chain", SHEIN has won the favor of more young people around the world with a more fashionable new product format, as long as the "SHEIN Chain" enterprises and SHEIN provide more, better and more fashionable products, users will consume more - this, the rapid growth of SHEIN GMV and APP is enough to prove. As SHEIN grows, there will be more orders from "SHEIN Chain" companies, and such market feedback is immediate, and there is no "middleman".
SHEIN not only shares the cake of globalization through the "SHEIN Chain" built by its self-operated brand business, but is now actively promoting the dual-engine development model of "self-operated + platform", which gives third-party merchants the opportunity to take SHEIN's giant ship to enjoy one-stop and customized solutions for going to sea. Relying on SHEIN's huge global user base, highly mature logistics and warehousing network, flexible and on-demand response first-chain system, and rich operational experience accumulated in the international market, many enterprises can easily "borrow ships to go to sea" and enter the vast overseas market.
You can't go to sea alone! Through the inclusive, efficient and flexible "SHEIN Chain", SHEIN attracts and gathers more and more enterprises from Chinese manufacturing to work together to expand overseas territories, expand business scale, and achieve high-quality and sustainable growth.