How SHEIN trumped competitors in the fashion retail market

This article really epitomizes how building a competitive strategy, even in challenging industries can create an advantage for management that is brave enough to implement that strategy successfully.

  1. Product Launch speed – even if it involves scraping designs off the internet (albeit from competitors and yes there is a intellectual property rights issue there and whether that is ethical)
  2. Build Fast – in a fast changing fashion industry often the consumer is not looking for quality. Perhaps they just want a good looking rip off to satisfy their style presence.
  3. Direct Ship model – no retail presence. lower overheads. fast customer satisfaction. Other companies like Amazon have also put a great deal of importance to building fulfillment centers around the country and try to promote same day delivery. This has shown to improve customer retention and satisfaction
  4. Choices galoe – A product range which is a 37 time multiple over Zara and 65 multiple over H&M
  5. Small scale vendors – fast fulfilment and ability to scale a popular product quickly without long design and production lead times.

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