Fast Fashion? Nope – We Think You Mean Fast Supply Chain!

At omnithink.ai, we’ve always been fascinated by the way that fashion and beauty companies stay on top of trends and meet the needs of their customers. That’s why I was so interested to learn about how Shein, one of the world’s largest online fashion retailers, manages demand planning and their supply chain. Now just to be 100% crystal, we’re not condoning the negative environmental impact and questionable labor practices in some of the fast fashion industry. But there are still some great nuggets of insight for any retail or e-commerce company to take away that can potentially improve their own retail operations.

For starters, Shein’s approach to demand planning and inventory management is centered around the use of data and technology to anticipate and meet customer demand. One key aspect of this approach is the use of social media to track and respond to customer trends and preferences.

Shein uses a variety of social media platforms, including Instagram, Pinterest, and TikTok, to understand what customers are looking for and to identify emerging trends. They also use social media to engage with customers and gather feedback, which helps them better anticipate and respond to customer needs.

In addition to social media, Shein also uses data analytics and artificial intelligence (AI) to forecast demand and optimize inventory levels. They have developed sophisticated algorithms that analyze data on customer behavior, market trends, and other factors to predict what products will be in demand and when. At omnithink.ai, we offer capabilities based on similar machine learning algorithms to our customers but in a way thats easy to use, understand and activate.

Shein’s supply chain is also highly efficient and agile, which enables them to quickly and effectively respond to changes in demand. They have a network of over 7,000 suppliers, and use advanced logistics and transportation systems to manage the flow of products from suppliers to customers.

Key Takeaways for Emerging Retail and Ecommerce Companies

There are several takeaways from Shein’s approach to demand planning and inventory management:

Use data and technology to anticipate and respond to customer needs: By using data analytics and AI to forecast demand and optimize inventory levels, Shein is able to anticipate and meet customer needs in a timely and effective manner. Emerging retailers and e-commerce companies can benefit from adopting similar approaches to demand planning and inventory management.

Utilize social media to track and respond to trends: Shein’s use of social media to track and respond to customer trends and preferences is a key aspect of their demand planning and inventory management strategy. Emerging retailers and e-commerce companies can benefit from using social media in similar ways to better understand and meet the needs of their customers.

Build an agile and efficient supply chain: Shein’s agile and efficient supply chain enables them to quickly and effectively respond to changes in demand. Emerging retailers and e-commerce companies can benefit from building similar supply chain capabilities to ensure that they have the flexibility and agility to meet the needs of their customers.

The Bottom Line – Shein’s approach to demand planning and inventory management, which is centered around the use of data and technology and an agile and efficient supply chain, is a key reason for their success in the fast-paced world of online fashion retail. By adopting similar approaches, emerging retailers and e-commerce companies can drive agility, responsiveness and profitability in their own businesses.