Shein, the China-founded bargain fashion giant, is gearing up to extend its innovative small-batch manufacturing model to global brands and designers, marking a notable shift in its business strategy. This move comes amidst a backdrop of challenges in the U.S., Shein’s largest market.
Executive Chairman Donald Tang outlined the plan, dubbed “supply chain as a service,” in a letter to investors obtained by The Wall Street Journal. Under this initiative, Shein aims to open up its supply-chain infrastructure and technology to external brands and designers, enabling them to utilize Shein’s system for testing new fashion items in small batches and gauging consumer popularity.
Having evolved from a Chinese discount apparel seller to a global fashion powerhouse, Shein’s small-batch, on-demand manufacturing approach has been instrumental in its rapid expansion to over 150 countries. However, the company has encountered hurdles in the past year, including regulatory scrutiny and intensified competition, notably from Temu, another budget retailer with Chinese origins.
Source: WSJ