Peter Pernot-Day, Shein: “With our production model, we have an unsold rate of 10%”

The Singaporean ultra-fast fashion retailer, which is due to be listed on the New York Stock Exchange, is estimated as the world’s third largest fashion retailer. While Shein is accused of forced labour and regularly pinpointed for a poor ecological impact, Peter Pernot Day, Head of Global Strategy and Corporate Affairs for Shein Group, outlines the pure player’s business model in an interview with mind Retail.

Through Bleuenn Fequant. Published on 22 May 2023 à 11h53 - Update on 22 May 2023 à 11h53

To which business model does Shein owe its very competitive prices?

In terms of supply chain, the pattern is as follows. For each garment we produce between 100 and 200 SKUs for the whole world. We then measure the level of demand for the various models on our website. Where there is demand, we transfer manufacturing orders to our third-party suppliers. (Editor’s note: Shein does not own factories). For each SKU, Shein sets an order volume with the factory, with a margin of 1,000 additional pieces. We can relaunch orders at a later date. The average production time is two to three weeks. This ability to adapt to demand allows us to significantly reduce inventory waste and pricing. Without this flexibility,…