Shein’s consumer-to-manufacturer AI program matches local demand at scale

AI will become an even greater enabler and differentiator for retailers who have access to a valuable wealth of data from their customers. This type of first-party gold mine helps fast fashion retailer Shein to save China’sTikTok for e-commerce.’ The Chinese brand uses artificial intelligence as its central insight engine to determine trends and predict consumer demand patterns and shifts, applying these lessons learned to create an optimized, end-to-end business with near-zero inventory. is. With advanced technology and a technology-driven supply chain configuration, Shein has managed to reduce the time it takes to create a collection and deliver it to customers from three weeks, which is the former best-in- class fare was what the competitor shone on. Zarato a groundbreaking period of just a few days.

Whenever Shein’s AI engine picks up on a change in demand or interest in a new trend, the supply chain can respond in real time. Shein’s incorporation of technology innovation delivers greater value to consumers through increased creativity, a wider range and faster time to market, while the brand’s all-digital inventory operations dramatically reduce costs. The fast-fashion brand has truly discovered how to use AI to create radical customer centricity, growing into a globally significant company in just a decade by leveraging a unique digital model that includes social media for targeting audience creation, e-commerce for convenient brand access and fintech for financing transactions into a convenient one-stop reality.

Retailers in general are increasingly leveraging customer insights to make informed decisions. In addition to marketing messaging and product R&D, retailers use first-party customer data to test and optimize their merchandising mix, brand partnerships, and even store locations to meet demand at the local level. Shein’s business model addresses the fundamental challenge of the fashion industry of meeting the near-constant consumer demand in real time for a wide range of affordable, stylish-trendy options, while simultaneously reducing inventory pressures on one or the other. way is reduced.

To get consumers interested in her clothing, Shein employs a comprehensive marketing strategy that combines social media, user-generated content, search engine optimization, short videos and live streaming. The company starts selling a product or accessory line by placing very small orders, powered by influencer-based promotion, and only placing further orders if the sales trends are considered good. The brand’s contracted third-party manufacturers can see supply and demand for each style through Shein’s supplier platform, giving them real-time visibility into sales and inventory and enabling them to respond accordingly. In 2021, fast fashion retailer’s dynamic product offering approach surpassed Zara and H&M in fast fashion sales and surpassed Amazon as the most downloaded shopping app in the US, recently reaching a valuation of $100 billion.

This article originally appeared in the PSFK iQ report, Consumer Data Integration.

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