- Shein offers supply chain expertise to third-party brands amid US regulatory hurdles.
- The company’s efficient supply chain management has been key to its success.
- Shein adapts to challenges by exploring new avenues for growth.
Fast fashion giant lends expertise to third-party brands
Fashion powerhouse Shein is adapting its business strategy in response to regulatory challenges in the United States, its primary market.
The Wall Street Journal reports that the company will now offer its small-scale, made-to-order system to third-party brands and suppliers, a service dubbed “supply chain-as-a-service.”
This move will allow external labels to leverage Shein’s platform for launching and testing new clothing items in small quantities, marking a significant shift from the company’s focus on offering its affordable products.
Thanks to good supply chain management
Shein’s rise in popularity can be attributed to its efficient supply chain management. The company collaborates with factories in China to produce and ship a diverse range of styles daily.
By utilizing real-time data to match demand and control inventory, suppliers can fulfill orders within days, reducing storage costs and waste, which ultimately enables Shein to offer lower prices per item.
IPO plans on hold, Shein adapts to challenges
However, Shein’s plans to file for an initial public offering (IPO) in the US have been put on hold. The company privately applied for a US listing in November and is currently awaiting a response from the Securities and Exchange Commission (SEC).
As Shein navigates these regulatory challenges, the pivot to supply chain-as-a-service demonstrates the company’s adaptability and willingness to explore new avenues for growth in the fast-paced fashion industry.
To read the original article: https://www.techinasia.com/shein-reshapes-business-global-brands-adopt-supply-process
