Eifini's Epic Journey: From 300 to 2600 Stores in Just 10 years! 2% annual storage, What are their secret to remain growth?

From 2014-2024, Eifini Stores amount increased from 300 till 2600 stores. From a business that were struggling to survive in the very competitive female fashion sector in China, what makes them remain rapid growth in the past decades (20-30% growth in revenue every year)?

Eifini ranked No.1 in Revenue during 11 Nov Period last year in 2023. By achieving 800 million RMB ~110 million USD revenue within one week.

From Struggling to Thriving - What are the critical point that fuel the growth?

Similar to many other brands, Eifini also growing from small. In year 2014, they were struggling to grow and facing challenges from many oversea brands. However, Eifini Group determined adapt to innovative strategies helped it overcome the traditional obstacles and thrive in a cutthroat market.

Strategies Behind Eifini's Rapid Expansion

1.Embracing Innovation and Technology, Leverage Big data

Eifini hired a team from IBM to create their own digitalisation system. From Retail to Storage to Order management, everything is monitored, this allows them to forecast based on actual data, without worrying over production. How does this system being implemented and construct?

From capturing data, data analysis, transfer, visualization, updating, their IT team spent a huge effort into intergrating everything. We will go deeper into this topic the other day to detailly explain how to work on it. But basically, from store front, till storage till their factories production, they know exactly when and what to produce thanks to Big data.

2. Low Storage, the innovative business model that every retailer desire

The Annual storage % of Eifini is 2%, despite extremely high revenue. How did they achieve that?

Out of the 2600 stores that they run, 300 of them are the experience stores for testing new styles, another 2300 mass stores are for selling the SKU that sells well.

Within the experience stores, there will be only 2 pieces per size per style. Which makes Eifini only keep 6 pieces per SKU at one stores. Clients who wants to buy, will have to preorder.

Some of you might wonder,

• How long does it take to preorder?
• And what if the client wants to buy a lot, how long does Eifini need to produce?

3. From Ideas to the hand of the clients, Eifini only need 7 days!

7 days is the time Eifini need from design ideas till the item arriving the customers home. How is it possible? For some of you outside of the fashion or retail industry, I believe you have heard of Zara. Zara need 14 days from ideas to items at stores/ arriving customers hand.

What makes Eifini takes only 7 days, half of the time of the king of fast fashion Zara?

• Logistic speed: In China, logistic is extremely matured, low cost, fast speed, even in different city, the item can be arriving within 1 day.
• Supply - chain management: Eifini have many grades of supplier, A-E, ensure high alignment with the internal design team, facilitating seamless production. Every season, A grade suppliers will prepare fabric, accessories and other materials right for the need of the designers team of Eifini. They will storage an amount of items, ensuring that once Eifini needs it, they can immediately ship it to the garment factory of Eifini for production. And Since Eifini know exactly which style will sell well, this model allows supplier to minimise risk in over production.
• Low Minimum order quantity, fast reaction production: The partner garment factory just need to produce 1,800 pieces of garment for the first badge for testing. Once it sells well during pre-order, the reproduction will be immediately proceed accordingly.

Conclusion:

The secret strategies behind Eifini’s success are multifaceted, involving technology, supply chain efficiency, and an innovative business model. Eifini’s business model emphasizes lean inventory, rapid production cycles, and a focus on customer experience, all of which contribute to its sustained growth and high revenue.

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