Our On-Demand Business Model

A model that offers more choice, more affordable prices, and less waste.

Unlike the traditional supply-driven model, SHEIN’s on-demand model addresses customer preferences more accurately and efficiently.

Our digitalized supply chain enables us to address the mismatch between customer demand and merchandise supply. It entails testing new products by launching them in small initial batches of 100 to 200 items, evaluating customer feedback in real time, and restocking products that are in demand. This highly automated process ensures our supplier partners make what our customers want while helping to minimize overproduction. This means much more affordable prices for our customers —and allows for less waste.

See our Business Model Infographic

“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.”

Sky Xu, Co-Founder and CEO of SHEIN

On-Demand Business Model

We respond to our customers’ needs and preferences with a level of precision and agility the fashion industry hasn’t seen before. It starts with our ability to measure demand signals accurately – from the way users engage with our app or website. These signals inform our designs so that we make products we know our customers want, when they want them.

Our proprietary digital supply chain technology provides real-time insights into demand and inventory for us and our network of supplier partners. We order just 100 – 200 pieces of any SHEIN-branded product at initial launch. This enables us to respond to increased demand or market changes with agility and speed – emerging trends can become SHEIN products quickly. By rethinking the traditional fashion production model, SHEIN matches demand and supply, saving costs at various layers of the business, which we pass on to our customers in lower prices. This means that our customers can access what they want, when they want it, and all at affordable prices.

Minimizing Waste

By adopting an innovative on-demand business model, SHEIN strives to minimize production waste from the start. By utilising small batch ordering based on trend research, SHEIN seeks to maintain consistently low unsold inventory rates. Additionally, our digital supplier management system equips our partners with real-time insights, to aid in more accurate production planning and minimize resource wastage.

Reimagining the Supply Chain

At SHEIN, we have reimagined the supply chain, we empower thousands of small and medium-sized businesses, giving them full insight into what our customers want and need. Our digitalized supply chain equips suppliers with the insight and tools they need to succeed, supporting their business ambitions, so that they can grow along with us. We build long-term relationships, working with third-party suppliers across the globe to manufacture products for SHEIN brands and support them in further improving working conditions in their facilities.

Our Supply Chain