Among the top four global fashion brands, why does SHEIN lead the new trend of fashion industry?

Under the trend of increasingly fierce competition in the global consumer market, the influence and penetration of domestic cross-border fashion retailers represented by SHEIN continue to increase overseas. SHEIN focuses on "fashion" and focuses on overseas markets. It has won the favor of users with its innovative and diversified product style, high cost performance and rapid development. Since 2014, the number of downloads has continued to grow year by year. According to media reports, as of November 2023, SHEIN has been downloaded more than 830 million times worldwide.

Recently, the latest "2024 Mobile Market Report" released by market analyst data.ai shows that in 2023, SHEIN surpassed the global integrated e-commerce platform Amazon and once again ranked first in global shopping APP downloads. In addition, SHEIN uses traffic advantages to improve brand exposure and attract more users on overseas mainstream social platforms, and jointly tops the download list of various categories with TikTok, Instagram, Spotify and other software, "sweeping" overseas markets.

As a new generation of Chinese global enterprises, what is the secret of SHEIN's "acceleration" in the global market?

Among the world's top four fashion brands

From the beginning of its establishment, SHEIN has continued to build its own clothing brand with the same name, constantly improving product strength and brand strength, standing out from many fashion brands and rising rapidly, becoming one of the four global fashion brands with ZARA, H&M and Uniqlo.

SHEIN's first clothing manufacturing innovation research center.

In the list of "Top ten fastest growing brands in the United States" released by Morning Consult, a well-known authoritative consulting company in the United States, SHEIN, as the only Chinese brand, ranks fourth, and is also the only fashion retail brand selected in the list, along with ChatGPT, Coca-Cola and other international well-known brands.

It is worth mentioning that SHEIN has surpassed Nike and become the largest clothing brand in Google search volume, and replaced ZARA to become the world's most popular fashion brand, and is also known as the "advanced version of ZARA" in the industry. According to research firm Coresight, Shein's global revenue in 2022 was about $23 billion, surpassing Zara and H&M to join the first echelon of global fashion brand "unicorns.

"So why has SHEIN risen in the mainstream fashion market? Relying on the high efficiency and cost-effective advantages brought by flexible supply chain is the key to its rapid development.

With flexible on-demand supply, SHEIN solves the problem of high inventory, which has plagued the apparel industry in the past. SHEIN is known to be able to reduce unsold inventory to low single digits, while other fashion brands have inventory levels as high as 40-50%.

Innovation enables industrial Internet upgrading

In Guangzhou, SHEIN continues to deepen the supply chain, Guangzhou's perfect garment industry chain cluster and cross-border supporting support SHEIN's rapid development, SHEIN has become a business card of Guangzhou city to the world, and contributes to Guangzhou to build a global cross-border center and fashion capital. Data show that the total import and export volume of cross-border e-commerce in Guangdong Province in 2023 exceeded 800 billion yuan, accounting for more than one-third of the national total.

By using the actual market demand to predict sales and control production to ultimately reduce overproduction, SHEIN achieves the unification of fashion and cost-effective clothing products, which is welcomed and loved by overseas consumers. According to public information, SHEIN was selected as the second place in the "Top 10 fastest growing brands among Millennials in 2023" and became one of the favorite brands of young millennials (born between 1981 and 1996) in the United States.

Under the development of SHEIN's flexible supply chain model of on-demand production, the overall efficiency is improved through the information and online upgrading of the whole link from the front-end fashion trend, design and development, production and manufacturing, warehousing, logistics and other links. Specifically, under the premise of real-time analysis and tracking of fashion trends, SHEIN brand starts with very small orders for all SKUs, with a minimum order of 100-200 pieces for each SKU. If the sales trend is good, the order is immediately returned, but if the sales do not meet the expectations, production is suspended.

The digital version of the tailor assembly shop, the production line can automatically follow the instructions of the cloth basket to the next process.

After entering the production link, SHEIN realizes the online management of the whole link and process through digital technology, and realizes intelligent order planning, planning and adjustment. In the past, most factories that rely on manual, Excel, email and other traditional ways to arrange production completed the digital upgrade of the whole chain, reducing cost and increasing efficiency, and greatly improving brand competitiveness.

"Behind the innovative flexible on-demand production model is the active efforts and attempts of China's cross-border e-commerce platforms, including SHEIN, to continuously empower suppliers to carry out industrial digital transformation and help upgrade the manufacturing industry." Wang Xin said.

In order to continue to help suppliers improve their digital manufacturing capabilities and enhance their comprehensive competitiveness, SHEIN has continuously provided a full range of capabilities for suppliers over the years to comprehensively improve their comprehensive capabilities. In 2023, SHEIN announced a five-year investment of $500 million in technology innovation, training support, factory expansion, and community services to continue to deepen supplier empowerment.

Open a new idea of "made in China" going to sea

With its extensive overseas sales network, mature marketing experience and innovative supply chain system, SHEIN constantly introduces products and brands from third-party merchants. Besides its own brands, Shein gradually forms a unique model of self-owned brand + platform dual-engine development, which promotes the upgrading of the clothing and fashion industry and gradually becomes a leader in the global fashion industry. It will usher in more opportunities for its industrial ecological partners and continuously enhance the influence of the domestic fashion industry in the world.

As fast as 24 hours of digital printing factory, factory staff in the operation of the machine, compared to the traditional factory human efficiency can be increased ten times.

In May 2023, SHEIN launched the "Gravitational Attraction" million sellers plan to help 10,000 merchants around the world, including China, with annual sales exceeding $1 million in the next three years, and help 100,000 small and medium-sized merchants reach annual sales of $100,000. Based on SHEIN's more than 10 years of global brand experience, full-link digital supply chain capabilities, and huge global marketing network and traffic base, SHEIN helps merchants and brands build global capabilities, and helps merchants grow in the whole life cycle through diversified operation and operation.

In addition, SHEIN goes deep into the industrial belt and carries out the national 500 city industrial belt program. In Wang Xin's view, the main purpose of the plan is to penetrate into the national 500 city industrial belt, connect the industrial belt with digital trade and digital flexible supply chain, provide integrated empowerment from production to sales and then to brand, and help related industrial belt enterprises to expand sales and brand promotion in the global market; At the same time, we will help more industrial chains achieve "on-demand supply" through digital upgrading, so as to enhance the competitiveness of relevant industries. For China's made in the sea and China's clothing manufacturing industry, SHEIN will further help it improve the entire ecosystem construction of brand going to sea and help build a high-quality brand going to sea.

Wang Xin believes that SHEIN is relying on flexible supply chain + industrial belt + cross-border e-commerce, bringing a different road to the sea for Chinese factories and sellers than Amazon's own, and the "National 500 city Industrial belt Plan" provides a "menu" choice for brand sellers to go to sea, helping more high-quality manufacturers and brands to go to sea, and driving more industrial upgrading.

In the future, SHEIN will continue to focus on the road of flexibility and lean, and continue to help industrial transformation and upgrading and internationalization.

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