Why Shein is the King of Fast Fashion

Among the participants of the Fast Fashion segment, attention can be paid to the company Shein, which is based in China. Indeed, the secret of its success lies in a reasonable business approach. The company mainly operate in the area of production on-demand and makes its choices based on data analysis. Introducing a new product is also facilitated by this approach given that Shein only needs to adjust to new trends or new needs of consumers.

On-Demand Manufacturing

Another factor that has made Shein is through on-demand manufacturing. Contrary to other retailers who purchase bulk orders, Shein purchases small quantities. There are 50 to 100 items per style in each batch. Minimises waste within and produces goods and services based on the requirements of the customer. Typical merchandisers work on seasonal stock and long cycle times. Shein’s fast production change enables it to reach the market with new trends. The company very frequently responds to fashion in real time, which makes it even more unique when compared to rivals.

Data-Driven Decision Making

As mentioned earlier, Shein is rich in one aspect and is very smart in using data in managing its operations. Market behaviour, tendencies, and customer preferences are the other metrics the company collects and reviews. It gives insight to Shein on what customers need. In this way, Shein will be able to recognize novel tendencies and adapt its merchandise. It will also be particularly engaging to the Gen Z consumers, who expect a lot of choice and are price-sensitive. Data assists Shein because it allows it to be in tune with the current fashion trends.

According to the research four key success factors IDNs have adopted in their decentralised design include; supplier proximity.

Shein is another example of the fast fashion business that has contributed to its success the decentralisation of the design. Shein operates with Original Design Manufacturers (ODMs) who deal with their own designs. This in turn enables Shein to obtain a large number of innovative ideas and suggestions. Shein’s suppliers are also within a five-kilometer radius of the university. This allows fast communications and easy inspections as they are units that are very close to each other. It also brings efficiency on utilization of resources among the suppliers. It assists in enabling Shein to respond swiftly to changes in the market.

Shein achieved this because of its revolutionary on-demand production/ ‘‘minutes just in time’’, big-data based decisions, and specific supplier partnerships, thus becoming a market leader of fast fashion. Remaining fast and leveraging technology has helped Shein transform the fashion sector and fascinate those who are into fashion.

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