Shein’s digital-first supply chains set the stage for fashion retail chains: Will others follow suit?
2 Jun 20259 min read
Summary
- The U.S.-China tariff battle reached a peak in April 2025 when duties surged above 100 percent, triggering urgent talks in Geneva that resulted in a 90-day truce. Beginning May 14, both nations agreed to sharply roll back tariffs, with the U.S. reducing duties on Chinese goods from 145 percent to 30 percent and China lowering its own from 125 percent to 10 percent.
- The temporary pause has already influenced global logistics, with ocean freight volumes expected to rise as companies move goods during the tariff-free window. Despite this short-term relief, multinational firms continue to focus on risk mitigation and flexible operations rather than reversing their long-term diversification strategies.
- Activity remains strong across Southeast Asia, particularly in Vietnam and Indonesia, where companies are expanding ready-built facilities, bonded warehouses, and multimodal hubs. According to Christine Li of Knight Frank, firms see this truce as a chance to secure strategic options while continuing to diversify supply chains under the China + 1 model to manage ongoing policy uncertainty.
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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