Shein touted as model unicorn in China’s quest for ‘new quality of productive force’, IPO unclear

State media emphasized SheinThe China-based fast fashion giant is seen as a fashion company transforming the country’s clothing supply chain, even as Britain faces uncertainty. initial public offering (IPO) and slower growth abroad.

State-administered Shanghai Securities News Xinhua News Agencypublished the first episode of the “Unicorn Growth Series” featuring Shane on Friday. The series is designed to highlight the role of unicorn companies, or startups worth more than 1 billion US dollars, as the vanguard of “productive forces of a new quality” – a term coined by the President Xi Jinping last September to describe the productivity gains driven by technology innovation.

Shein, which sells inexpensive clothing to customers around the world from its extensive supplier network V Pearl River Deltawas praised for its contribution to the modernization of the industry in a report entitled “The Miracle of the Growth of Shein Fashion Company”.

Known for its flexible production model, Shein typically starts with small orders, about 100 to 200 per SKU (the number assigned to each product for inventory purposes), and then adjusts production based on data such as clicks and sales.

Fast fashion juggernaut Shane is known for his flexible production model. Photo: DPA

This on-demand manufacturing method improves efficiency and reduces waste, according to a Shein vice president cited in the report. As a result, the company’s excess inventory levels fell to single digits, compared with the industry average of 50 percent.

The article also details Shane’s investments in apparel technology, such as a proprietary glove-making machine that can complete each piece in three minutes, one-sixth the previous production time. Suppliers often visit the Shein Innovation Research Center for training in fabric inspection, sewing, quality control and production management.