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The fashion industry’s traditional retail approach is out of touch with changing consumer behavior and out of touch with the future of the industry. When demand is misjudged, overproduction becomes overstock, leading to increased product prices, overuse of resources and waste. At SHEIN, we’re guided by what our customers ask for, always adjusting to meet what they actually want to buy instead of producing what they might want next season. This approach is at the core of SHEIN’s unique business model and fueled by our innovative, trend-spotting technology. Here’s how our business model works and how it helps us meet our customers’ needs. Contrary to traditional forecasting practices that often result in unsold inventory that eventually goes to waste, SHEIN approaches this in a completely different way, starting with small batch orders of 100-200 units. Then, we order more or stop production based on real-time order feedback. This way, production is closely linked to actual demand, creating virtually none of the product waste created by incorrectly predicting what will and won’t sell. After the designed order is put into the MES system, it automatic divide the order to the advanced factory with required materials and standers(fabric inspection, fabric purchasing……）. After the preparation, the factory starts to do cutting, sewing and finishing（Cut wires, check goods……). Then packaged and shipped back to the shein warehouse, after the end of the inspection, the app shows the product on the shelves available for sale. In addition, since we don’t have retail storefronts, there is no need to order products to stock stores. We supply only as much product as our customers readily want to purchase on the site or app. This tackles one of the fashion industry’s biggest issues-- overstock waste. While the average unsold inventory level among traditional fashion retailers is 30%, SHEIN can reduce it to a single digit percentage – and pass the savings from the production savings onto our customers. Using SHEIN's unique business model, we have built a supply chain to best serve our customer's changing needs with a flexible, rapid response, to meet demand for affordable and trendy options.