Shein offers Aussie brands its supply chain as a service, trading speed and scale for potential risks to quality and control.
Background: Shein is the ultra-fast fashion giant founded back in 2008 as a wedding dress dropshopping business. Since then, it's transformed into a global fast-fashion behemoth operating in 160 countries with hundreds of millions of customers. And, it's built that scale by pumping out 40,000 to 50,000 new items every week.
What happened: Now, Shein has introduced a new division, and it's pushing it into Australia. The pitch is to offer Australian brands access to its supply chain, logistics and e-commerce platform. The idea is that brands can then focus purely on design and branding, while Shein handles everything behind the scenes like manufacturing and distribution.
What else: Shein's reputation around quality, labour practices, sustainability, and IP has made some labels hesitant. But for smaller or emerging brands, this "supply-chain-as-a-service" model is tempting because it dramatically speeds up getting products to market without needing to build the infrastructure themselves.
What's the key learning
💡 The "as-a-service" model started with software but is evolving into new categories all the time. From SaaS players like Salesforce and Adobe, to infrastructure via Amazon Web Services, and now even supply chains through Shein.
💡 Businesses can launch and scale faster without owning infrastructure. With over 94% of companies using cloud and many businesses running 100+ SaaS tools, the as-a-Service models are now plug-and-play.
💡 But speed comes with a trade-off. The more you rely on external platforms, the less control you have over margins, quality, and brand... which is why Australian brands are wary of handing over control to a player like Shein.
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