Shein To Sell Supply Chain Infrastructure To Outside Brands

Fashion retailer Shein plans to make its supply chain infrastructure and technology available to other brands, the Wall Street Journal reports. Executive Chairman Donald Tang referred to the new initiative as “supply chain as a service” in a letter to investors.

Shein’s unique manufacturing model allows brands to test new fashion items in smaller batches and track their popularity with consumers. This on-demand model uses real-time data to quickly analyze demand, restock orders as needed, and discontinue items with low sales.

The Singapore-based company earned a reported $30 billion in revenue in 2023. However, it faces competition from Amazon and Temu, which just announced plans to expand its platform to include sellers with U.S.-based warehouses.  

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Shein has become a leader in the “fast fashion” industry, offering trendy apparel and accessories at affordable prices. It was the most searched fashion brand on Google in 2022, beating out more prominent brands including Zara, Nike, and Dior.

The decision to sell its supply chain infrastructure comes on the heels of Walmart's recent decision to sell its logistics tool to other businesses.