Shein’s digital-first supply chains set the stage for fashion retail chains: Will others follow suit?
2 Jun 20259 min read
Summary
- Shein’s demand-driven, small-batch production system is redefining speed, inventory risk, and price formation in ways traditional fashion supply chains struggle to match.
- Competing models from platforms such as Temu and retailers like Zara highlight divergent paths to agility, revealing trade-offs between logistics optimisation, production control, and scale.
- Shein’s move toward offering its supply chain as a service signals a shift from retailer to infrastructure provider, raising questions about who controls manufacturing decisions as fashion supply chains become increasingly platform-led.
Shein’s agile supply chain is its biggest mark. By leveraging a digital-first approach, Shein has established itself as a global e-commerce powerhouse, dominating the industry with speed, efficiency and consumer-centric offerings. In 2024, it was forecasted to reach $50 billion in revenue and claimed 18.4% of the market share worldwide in the fast fashion category. For fast fashion platforms, the question is: Is Shein’s digital-first supply chain the new blueprint for success, and can legacy retailers adapt quickly enough to follow suit? Or is Shein’s dominance a result of unique circumstances that competitors cannot easily replicate?For fast fashion platforms, the question is: Is Shein’s digital-first supply chain the new blueprint for success, and can legacy retailers adapt quickly enough to follow suit? Or is Shein’s dominance a result of unique circumstances that competitors cannot easily replicate?
Shein’s Digital-first Supply Chains
Shein’s supply chain model is a departure from the usual fashion retail production. They center on agility, precision and customer demand. Unlike the conventional supply-driven approach, Shein employs an on-demand business model that tailors its offerings to real-time consumer preferences.
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“Since we founded Shein, our focus has been on meeting the needs of customers. We’ve reimagined fashion from a supply-driven model to a demand-driven model to make the beauty of fashion more accessible to all. At the same time, we are focused on continuing to support and empower the designers, creators, suppliers, and partners who are fundamental to our success.” says Sky Xu, Co-Founder and CEO of Shein
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