Thread by @NeckarValue

Fascinating. The new Chinese fast fashion giant.

"By 2020, Shein’s sales had risen to $10 billion, a 250% jump from the year before. In June, the company accounted for 28% of all fast fashion sales in the US — almost as much as both H&M and Zara combined"
restofworld.org/2021/how-shein…

"For years, European brands like Zara and H&M have embodied fast fashion ... Shein isn’t chasing runway trends — rather, it often knocks off items seen on TikTok and Instagram, where hype cycles move significantly faster.

... Whereas Zara typically asks manufacturers to turn around minimum orders of 2,000 items in 30 days, Shein asks for as few as 100 products in as little as 10 days. “They want factories to be much more nimble,” said Lu"

DTC.

"Over the past decade, thousands of Chinese clothing manufacturers have begun selling directly to international consumers online, bypassing retailers that traditionally sourced their products from the country."

"Equipped with English-language social media profiles, Amazon seller accounts, and access to nimble garment supply chains, they’ve fueled the acceleration of trends and flooded closets everywhere with a wave of impossibly cheap clothes."

"operating a sprawling online marketplace that brings together around 6,000 Chinese clothing factories. It unites them with proprietary internal management software that collects near-instant feedback about which items are hits or misses"

Software.

"The secret is Shein’s internal software, which connects its entire business from design to delivery. “Everything is optimized with big data,” Lin said. Each of Shein’s suppliers gets their own account on the platform, which spits out information about ...

what styles are selling well and can also quickly identify which might become future hits. “You can see the current sales, and then it will tell you to stock up more if you sell well and what you need to do if you don’t sell well. It’s all there.”

Decentralizing fashion.

“A big brand might need a very high-end designer and even then may only be able to produce 20-30 styles a month. Shein does not have high design requirements. It is possible that a university student could get started designing quickly."

Gamified.

"Online shopping in the country has evolved into a form of entertainment, featuring livestreamers, flash sales, and pop-ups that compel consumers to scroll through the newest products. Shein brought that style to the West, and it really works with Gen Z,”