Value Chain Analysis of Shein

Shein is a retail fast-fashion Chinese multinational company. The company started its retail fashion business in 2008. Today, we’ll discuss the value chain analysis of Shein supply chain analysis; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.

Suppliers and Vendors of Shein

• Lanxi Rose Team Lingerie Firm
• Zhangjiagang Hezhirun Import and Export
• Chaozhou Huayang Packaging
• Guangzhou Dodo Bird Industry
• Wide Silver Leather
• Shandong Minolta Fitness Equipment
• Quanzhou Youfan Import and Export Trading Company
• Quanzhou Zhoushang Trading
• Fujian Surprise Network Technology
• Zhejiang New Joy Trading
• Hangzhou Kuai Garment Factory
• Dongguan Wojieya Clothing
• Guangzhou Weixin Garment

The Value chain analysis of Shein supply chain analysis would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s the supply chain analysis of Shein value chain analysis company example as follows;

Value Chain Analysis of Shein

Let’s discuss the primary and supporting activities involved in the process of value chain analysis of Shein supply chain analysis. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of Shein

The primary activities are directly involved in the production of products and goods and adding value to the company. Some of the five main primary activities in the value chain analysis of Shein supply chain analysis are as follows;

Inbound Logistics of Shein

I-Large Suppliers

Shein has established a very large suppliers network comprising over 3000 suppliers and vendors in China. The large and diverse suppliers network helps the company to ensure the smooth availability of raw materials, supplies, and components for the production of retail fast fashion apparel.

II-Suppliers Code of Conduct

Shein has set up a strict code of conduct for suppliers and vendors; they should comply with ethical and sustainable practices and regulations of the company. They comprise of following elements;

• Fair wages
• Safe working conditions
• Compliance with international labor regulations
• Safe and healthy working conditions

III-Empowering Suppliers

Shein focuses on building a strong and long-term relationship with suppliers and vendors. The suppliers empowering program helps the company to improve the production methods of the partnered suppliers.

• Supporting their families
• Suppliers ecosystem services
• Upskilling and training initiatives
• Tech development

Outbound Logistics of Shein

I-Transportation & Logistics

Shein partners with various transportation and 3rdparty logistics service-providing companies for the transportation and distribution of retail fashion goods. According to an estimate, the company transports goods in approximately 80 countries across the globe. The logistics service providers transport goods from suppliers to production and manufacturing factories; warehouses and distribution centers, and then to the retail stores and end consumers.

Operations of Shein

I-Production & Manufacturing

Shein partners with various production and manufacturing factories. It is significant to mention here that the company doesn’t design its clothes, rather it outsources the designs and manufacturing from the China wholesale market. However, the integrated processes would help the company to timely manufacture the retail fashion goods to the end consumers.

II-Warehouses

Shein has various warehouses and distribution centers in various countries across the globe. The retail fashion brand has built its warehouses and distribution centers precisely nearer to the retail customers market. It allows the company to reduce transportation and distribution costs and save a lot of delivery time.

Marketing & Sales of Shein

I-Marketing & Advertisement

Shein runs various types of advertisement campaigns and marketing strategies for the promotion of its fashion products and brands. The retail fashion brand employs social media platforms, digital media channels, user-generated content, and collaboration with influencers to approach the target segments of the customer market and sell its products.

II-E-commerce

Shein has developed an e-commerce platform and the company offers a wide variety of fashion products and designs to the customers. Online stores help the retail fashion brand to directly connect with the end consumers and directly sell its products to them.

Services of Shein

Shein offers a wide range of products and services to the end consumers. The additional services help the retail fashion brand to improve the customer shopping experience and promote brand loyalty. Some of the main services of the company are as follows;

• E-commerce platform
• Delivery service
• Better user experience
• Affordable clothes collection

Supporting Activities of Shein

Supporting activities are indirectly involved in the production of products and goods and adding value to the company. Some of the main supporting activities in the value chain analysis of Shein supply chain analysis are as follows;

Infrastructure of Shein

Shein has established a very large infrastructure of production and manufacturing facilities; warehouses and distribution centers, a retail chain store network, and an e-commerce platform. Well-developed infrastructure helps the retail fashion brand to smoothly perform its various production and manufacturing operations, and timely deliver the finished goods to the end consumers.

HRM of Shein

Shein has employed approximately 10,000 employees to manage its global operation. The human resource management department of the company plays a key role in building an innovative working environment, safe working conditions, fair wages and incentives, and offering equal employment opportunities to all regardless of any differences.

Technological Development of Shein

Shein invests a significant amount of capital resources in technological development. It allows the company to launch automation technology in its production and manufacturing facilities and warehouses, data analytics, integrated systems, and a well-developed e-commerce platform. However, it helps the company to achieve efficiency in its operations and save costs.

Procurement of Shein

Shein is highly careful and cautious about ethical and sustainable procurement of raw materials, supplies, and components for production. The retail fashion brand has set strict regulations and a code of conduct for suppliers to ensure their compliance with human rights standards and government regulations.

Conclusion: Shein Value Chain Analysis Example Company | Application of Value Chain Analysis Process |Process of Value Chain Analysis

After an in-depth study of the value chain analysis of Shein; we have realized that Shein is the world’s leading retail fast fashion brand. If you are learning about the Shein value chain analysis example company; then you should keep in mind the abovementioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.