Exploring SHEIN: Technological innovation behind fashion and upgrading of the entire industry chain

In January 2025, data from global online analysis platform Semrush was like a thunder: SHEIN ranked first among global fashion websites with an absolute advantage of twice the number of monthly visits exceeding ZARA. This is not only a victory for numbers, but also an industrial transformation driven by innovation in the entire industry chain of digital flexible supply chains and the green revolution.

In France, the heart of the luxury goods empire, SHEIN won the champion in consumer spending growth only one year after its platform model was launched; on the other side of the ocean, USA Today ranked it with Amazon as the best customer service company. Behind these seemingly impossible combinations lies a subversive reconstruction of global fashion rules by the SHEIN supply chain.

Flexible supply chain industrial operating system in the digital era

When traditional clothing brands were struggling with an inventory backlog rate of 40%, in a supplier factory in Panyu, Guangzhou, Huang Hao looked at the order data that was jumping in real time on the screen and synchronized the production instructions for new dresses to the factory with a click of a mouse. This is the daily picture of SHEIN’s own brand’s small order fast-reverse model: a trial order mechanism of 100-200 pieces, combined with real-time updated sales data, makes it possible to return orders for hot items 24 hours a day and immediately suspend production for slow-moving products. This on-demand production model is like a sophisticated scalpel, cutting the average unsold inventory rate to low single digits.

Supporting this efficiency revolution are SHEIN’s Digital tools and the smart supply chain matrix that has been continuously built for more than a decade. In recent years, SHEIN has continued to deepen the domestic supply chain, and the supply chain infrastructure layout with an additional 10 billion yuan is accelerating, which will further drive the upstream and downstream development of the industry and supply chain. Just recently, the Xiyin Bay Area Smart Industrial Park in Zhaoqing, Guangdong completed project acceptance and delivery and is expected to be officially put into use within the year.

At the same time, another Xiyin Bay District Western Smart Industrial Park project in Zhaoqing with a total investment of 3.5 billion yuan has currently been capped and the basic construction of the factory has been completed. The project plans to build an intelligent sorting center, order distribution center and intelligent manufacturing factory. The smart park is expected to be completed in December this year and will be put into trial operation in the first half of 2026. After the project reaches production capacity, it is expected to complete an annual service trade export volume of 3.5 billion yuan; The Xiyin Bay Area supply chain project located in Zengcheng, Guangzhou, with a total investment of 10 billion yuan is also under accelerated construction. It will build a global delivery center through a“ green, intelligent and automated” integrated supply chain. It is expected to introduce industrial talents after all three phases reach production. During the peak period, it can reach about 100,000 people.

Relying on the domestic complete industrial chain and basic advantages of supply chains, as well as the digital flexible supply chain advantages innovatively developed by its suppliers, SHEIN accelerates the layout of smart supply chain matrices radiating to cities in the Greater Bay Area such as Guangzhou, Foshan, Zhaoqing, and Jiangmen. At the same time, it has continued to expand platform development, driving industries in more than 300 cities across the country to bring sellers to sea. At the beginning of 2025, the SHEIN platform will launch a blockbuster plan for cross-border merchants of all categories and models, providing tens of billions of internal and external traffic support, and accelerating the doubling of global sales of cross-border merchants.

In other words, the supply chain of the traditional apparel industry is like a heavy giant ship, relying on quarterly forecasts, large-scale production, and long-term distribution of goods. The disruptive nature of SHEIN lies in the dismantling of the supply chain into on-demand supply that grasps fashion trends and precise control of fine grain size supported by digitalization. This grain revolution has completed the paradigm shift of the apparel industry from predictive production to on-demand production.

The deep significance of digital transformation lies in reshaping industrial relations. SHEIN’s enabling system to cover corporate needs is rewriting the trend of the fashion industry: fabric supplier Zhou Yining’s Shunde Digital Printing Factory has introduced AI cloth inspection machines, and the daily inspection volume has soared from 1000 meters to 6000 meters; Huang Hao’s garment factory has entered the fast lane of healthy development through SHEIN’s empowerment guidance in digital systems, production ordering, operation and stocking, and quality management.

Among them, fabric supplier Zhou Yining’s entrepreneurial journey began in 2011. He initially rented a studio in Panyu, Guangzhou to draw clothing drawings for customers, and then gradually developed into a fabric digital printing factory. The factory once provided services to Fujian sports brands, Guangzhou Shisanhang stalls, Taobao merchants and Amazon sellers, and the order volume was once saturated. However, as the market changes, order volume has dropped sharply, and companies are facing difficulties. In 2018, Zhou Yining keenly captured the development opportunities of cross-border e-commerce and began to cooperate with SHEIN.

At first, Zhou Yining was not optimistic about SHEIN’s small order fast-reverse model because he was worried about the small order volume. But after trying, he found that SHEIN’s comprehensive enabling support had brought significant changes to the factory. By determining production based on sales, brand inventory has been greatly reduced and production efficiency has been greatly improved. In the early days of the cooperation, the SHEIN team was stationed on site to provide guidance, helping Zhou Yining transform from traditional Excel form management to digital transformation, and solving the problem of frequent errors caused by similar patterns and lack of classification labels. Nowadays, with the help of the Digital tools developed by SHEIN, the factory has achieved a comprehensive digital upgrade from order receiving and shipping to process management. Production materials and elements are accurately matched in each link, and intelligent follow-up, reminder and alarm functions further improve production efficiency.

In 2023, as the order volume continues to grow, Zhou Yining, empowered by SHEIN, built this modern digital factory in Shunde, Foshan. SHEIN not only provides financial support, but also participates in the entire process of guiding plant site selection, environmental layout and production process planning. The factory has introduced advanced hardware equipment and combined with the continuous upgrade of SHEIN Digital tools to achieve the full visual management from fabric raw materials to finished product delivery, and energy efficiency has been significantly improved. Today, more than 70% of the factory’s employees are novices and can be competent for work after 3-5 days of training. They are mainly responsible for operating and supervising automated equipment. The use of AGV intelligent handling robots not only improves handling efficiency, but also allows young people to engage in more technical processes.

Under the traditional model, fabric defect inspection relies on manual work, which is inefficient and error-prone. Today, an automatic cloth inspection machine equipped with 24 cameras and AI technology can automatically capture flaw points, with a daily inspection volume of up to 6000 meters, greatly improving production efficiency and quality control. Digital and intelligent transformation has improved the human efficiency of Zhou Yining’s factory by at least 10 times compared with traditional printing factories of the same size, and the improvement in production capacity and quality has attracted more orders.

In 2020, affected by external factors at that time, the clothing market in Huang Hao’s place quickly fell to freezing point. At this time, he had been running a factory for 14 years.& ldquo; Either close the factory or transform.” rdquo; In 2020, it decided to switch to SHEIN and give it a shot, opened its first branch factory and became a cooperative supplier of SHEIN. In 2021, it will transfer half of its production capacity to SHEIN and invest in automated cutting equipment and sewing and hanging systems. In 2022, all production capacity will be invested in making orders for SHEIN and a second branch factory will be opened. In 2023, its sales will nearly quadruple.

At the beginning of 2024, its employees moved into an 8000-square-meter digital and modern factory built in accordance with SHEIN standards and financial support. It has expanded from specializing in children’s clothing to all categories, and the number of employees has also increased from more than 100 before the cooperation to nearly 500. As of the end of 2024, such transformation has occurred in more than 200 factories across the country, and the 500,000-square-meter old factory building has regained its life in the wave of digitalization.

Green innovation, sustainable fashion, technological breakthrough

If digitalization is the backbone of SHEIN, then green technology innovation is its flowing blood. Digital cold transfer is making part of the traditional washing process a thing of history.

This revolutionary breakthrough not only increased SHEIN’s denim production using digital cold transfer technology by 90% in 2024 compared with the previous year, but also brought environmental benefits of 70.5% water conservation for a single product. The polyester polymer recycling technology developed by the Donghua University team is transforming waste PET bottles into high-end recycled fibers. This technology, which will be mass-produced in 2025, will completely break the curse of recycled fibers degradation and recycling.

It is reported that this innovative technology combines the advantages of physical and chemical methods and can expand the scope of recycled materials to cover pre-and post-consumption polyester materials such as waste textile materials and PET bottles. This process not only provides greater flexibility in raw material procurement, but also effectively reduces costs and improves production efficiency. Test results from Donghua University show that this process can realize multiple recycling of recycled polyester and has no significant impact on the properties of textiles. This breakthrough development will provide strong support for the recycling development of the fashion industry.

SHEIN plans to combine this technology with its on-demand flexible supply chain model to help the brand achieve its 31% recycled fiber replacement goal by 2030. In addition, the new generation polyester polymer recycling solution is expected to be promoted to industrial suppliers in June 2025 and achieved mass production. Suppliers applying this solution in the early stages are expected to achieve an industrialization capacity of 3000 tons of fiber per year.

As global attention to sustainable development increases, recycled polyester, as an environmentally friendly textile material, is becoming the mainstream choice in the industry. This innovative technology of SHEIN not only lays the foundation for the green transformation of its own supply chain, but also provides new ideas for the sustainable development of the entire fashion industry.

The integration of technological innovation and business logic is vividly demonstrated in the field of digital printing. While traditional silk printing is still worrying about treating thousands of tons of wastewater, SHEIN’s digital thermal transfer has achieved the myth of zero water consumption. As of June 2024, 65% of printing products use this technology, saving a total of 1.13 million tons, equivalent to Filling 2.26 billion 500-ml mineral water bottles.

What’s even more subtle is that this technology perfectly fits the small order fast reverse mode. The flexibility of printing allows designers to boldly experiment with complex processes such as gradient tie-dyeing without being timid due to inventory pressure. At present, SHEIN builds a circular economy through material technology innovation, completing a closed-loop breakthrough from linear consumption to recycling.

With the rise of domestic digital printing equipment and inks, costs have dropped significantly. Today, the cost of digital printing is equal to that of traditional watermarks and is more environmentally friendly. After the equipment upgrade, a 24-head printer can print more than 500 meters of fabric per hour, greatly increasing the production capacity. Under the active promotion of SHEIN, digital printing has gradually replaced traditional watermarks and become the mainstream choice in the market, and the green content of the supply chain continues to rise.

In addition, SHEIN has also accelerated the green transformation of its upstream and downstream industrial chains through a series of green innovation measures, covering the promotion of environmentally friendly fabrics, new energy truck applications and the promotion of rooftop photovoltaic systems, injecting new impetus into sustainable development.

SHEIN promotes the application of environmentally friendly fabrics among suppliers by purchasing excess stock fabrics, recycled fabrics and forest-safe viscose fiber fabrics. The company has also launched evoluSHEIN by Design sustainable apparel materials and production standards, requiring apparel fabrics to contain at least 30% of preferred environmentally friendly materials. The joint series launched with Brazilian pop singer Anitta, as well as the SHEIN X Rescued series, meet this standard.

SHEIN also plans to enable 50% of its own brand products to meet the evoluSHEIN by Design standard by 2030, accelerate the use of environmentally friendly materials, improve responsible procurement and production processes, and promote the deep integration of fashion and sustainable development.

In the logistics sector, SHEIN’s green footsteps have never fallen behind. It guides suppliers to gradually adopt new energy trams and promotes customized photovoltaic system installation solutions. In 2024, a 16.5-meter new energy truck departed from Sanshuicang, Foshan and successfully arrived at Guangzhou Nansha Bonded Port Area, marking the official introduction of new energy technologies in the SHEIN supply chain.

Compared with traditional diesel trucks, new energy trucks can reduce carbon emissions by nearly 30% over a transportation distance of 140 kilometers, and each vehicle can reduce carbon emissions by 17 tons per year, equivalent to planting 1400 trees. In addition, new energy trucks also reduce transportation costs by 29%. SHEIN also plans to promote the use of new energy vehicles in more business scenarios to help suppliers gradually achieve green transformation in warehousing logistics.

At the same time, it actively promotes rooftop photovoltaic systems to help suppliers install solar panels and use solar energy to generate electricity. This renewable energy is not only clean and environmentally friendly, but also significantly reduces production costs. SHEIN provides suppliers with professional support and preferential electricity price discounts, as well as cash incentives.

As one of the first suppliers to respond, the person in charge of Yilian Clothing said: The installation of rooftop photovoltaics not only responds to environmental protection trends, but also significantly reduces production costs. rdquo; According to his introduction, the power generation of the photovoltaic system is close to 90% of the estimated power, and the factory can consume 90% of the photovoltaic power, basically realizing free electricity. After another supplier, R & F Clothing, installed rooftop photovoltaics, the top floor of the factory also achieved insulation and cooling, and excess electricity can also be sold to the State Grid.

As of the end of 2023, SHEIN suppliers have installed 51.6 MW rooftop photovoltaic systems, generating approximately 21.29 million kilowatt-hours of green electricity, equivalent to a reduction of 12,140.15 tons of carbon dioxide emissions. SHEIN will continue to promote the use of renewable energy and help suppliers reduce energy costs through the Energy Efficiency Pilot Project and the Implementation Guide for Energy Saving Measures.

Now, the tentacles of the green revolution have extended to the end of the industry. The person in charge of a garment factory in Guangzhou said that within half a year of the implementation of the SHEIN energy efficiency improvement project, the factory achieved a power saving rate of 13.9%. The use of high-efficiency equipment such as hanging systems introduced according to the customized plan saved in half a year. The cost is 50,000 – 60,000 yuan, and the money saved can provide employees with benefits such as learning training, team building, etc. I didn’t realize before that the energy efficiency improvement brought about by green carbon reduction in factories would eventually bring positive feedback on employee income and talent recruitment.

While spring clothes were still displayed in the windows of ZARA stores on the streets of Paris, SHEIN had predicted through social media hot words that the wasteland style would become popular in South America. This demand-driven democratization of fashion is disintegrating the moat of traditional giants.

The rise of SHEIN is changing the global stereotype of Made in China, from a cost depression to a cognitive subversion of innovation highland, triggering a revaluation of value. In the near future, when people stand on the observation deck of the Smart Industrial Park in Xiyin Bay Area and look down, they will see such a picture. The factory covered by photovoltaic panels is like a blue ocean, and the transportation system composed of AGV robots is flowing endlessly and ultimately in an orderly manner. Send packages around the world.

This picture reveals not only the success of SHEIN, but also the epitome of the transition in manufacturing value in China: when the accuracy of digital printing machines exceeds the nanometer level, when the green electricity of rooftop photovoltaics lights up smart factories, when waste PET bottles transform into high-end fabrics, the traditional low-cost advantage has been redefined as the compound competitiveness of digitalization capabilities, innovation speed and ecological potential.

This industrial revolution initiated in the Pearl River Delta is proving a subversive truth: in the reconstruction of global value chains, the most powerful competitiveness is not the advantage of scale, but the ability to transform technological innovation into industrial standards.