SHEIN 6 secrets to always selling out products!
In the end, how much effort does SHEIN make to always have best-selling products? Together with Alran, materials for the leather, shoe, and handbag industry, we will find out about SHEIN: What are the 6 secrets to always selling out products?
- Trend prediction: Product planning based on Big data analysis
In terms of product design, SHEIN captures fashion trends through offline buyers and online data collectors, and independently designs products based on the information obtained to create innovative products. trend.
After updating, SHEIN will also capture user information in real time, such as the number of people who clicked product details, the number of people who added the product to their shopping cart, and will recommend additional styles. Similar designs that customers may be interested in… Conduct verification and feedback for product planning and development. Based on customer feedback, SHEIN will also automatically adjust output based on each style, model, and size.
- Audience orders: combine products based on customer portraits
SHEIN's customer positioning is relatively good and can provide products that suit the styles of customers in different regions!
SHEIN's customer positioning is very precise, mainly female office workers from 20-35 years old pursuing fashion style, paying attention to price and personalized designs. This group is interested in and proficient in using mainstream social platforms, has a high level of marketing awareness, and has a high rate of online shopping. To meet the needs of customers in different regions, on the basis of a large number of SKUs, provide corresponding styles to customers in different regions. For example, products in US stores tend to be more sexy, products in Saudi Arabia are mainly traditional long skirts, products in Japan have more youthful styles, products in France have more popular elements.
Therefore, by precisely targeting users, SHEIN has acquired a large base of consumers with high loyalty and high repurchase rates.
- Fast delivery: stimulates customers' purchasing needs to the greatest extent
SHEIN launches about 3,000 new styles every day and nearly 20,000 new styles every week;
In terms of inventory, SHEIN women's clothing currently has 170,000 SKUs, with a large number of designs for customers to choose from, which can maximize customers' desire to purchase.
- Super cost savings: Create "addictive consumption habits" for customers
SHEIN has a very competitive advantage in product prices, taking women's summer dresses as an example, SHEIN's product prices range from 6 to 25 US dollars (equivalent to 114,000 to 600,000 VND), which has an advantage Absolute price compared to fast fashion brands like Zara and HM.
- Offline integration: Let customers visually feel your brand's appeal
On October 22, 2022, SHEIN opened a three-month store “SHEIN POPUP OSAKA” in Shinsaibashi, Osaka, Japan for customers to experience direct purchasing.
Recently, SHEIN acquired 1/3 of the shares of SPARC Group, which owns brands such as Forever 21, Brooks Brothers and Reebok! This move is believed by industry insiders that SHEIN will strongly attack brick-and-mortar shopping stores and gradually form a company with an integrated online and offline platform!
- Quick response to small orders: reduce inventory to the greatest extent
All SHEIN products follow the small order production method, quick returns, mostly small batch orders of 100-500 pieces/order, OEM and ODM delivery time requirements are 7-7 days. 11 days and 10-15 days.
In SHEIN's "small order, fast production" production method, most initially only produce about 100 pieces/model, then bring it to the market for testing, by adding one order, the cost of one can be significantly reduced; If the order quantity is low, they will re-examine the design process to modify the layout until it is refined and becomes a best-selling model.
Some people may ask, why are SHEIN's suppliers so willing to cooperate with them?
- SHEIN mainly chooses small and medium factories, because orders for large factories need to be confirmed one quarter to half a year in advance, with low flexibility, while orders for small and medium factories can be relatively low. flexible;
- SHEIN actively subsidizes suppliers to ensure the factory does not suffer losses when producing small orders. SHEIN never violates payments and will even pay suppliers in advance;
- SHEIN leaves inventory pressure to itself and does not return products if there are quality problems to reduce pressure on suppliers. Wow!
The way they work is really great, with a way of working like SHEIN, perhaps any supplier is willing to cooperate with them, WIN-WIN spirit!