In this era of over consumption with interests waning by the second, ever wondered how successful businesses stay ahead? The secret lies in a very advanced business model.
Across various retail sectors, it is imperative that businesses align their supply equivalent to their consumers demand in real time, otherwise it’s quite plausible for brands to fall off their pedestal in the market. This concept of catering to the consumer’s demand down to the very minute is known as real-time retail.
This phenomenon marks a departure from the traditional model of fast fashion. Here, the stakes are high & the tempo is fast. The businesses that thrive in this environment are the ones who are aligned to the heartbeat of the market.
Fashion at Warp Speed
As the world evolved, so did the norm. With the economy on the rise, low manufacturing costs, higher consumer purchasing powers and advanced technologies saw the emergence of the era of fast fashion.
The clothing industry, thus, began a business model in which recent catwalk trends and high-fashion designs are copied, mass-produced at a low cost, and shipped quickly to retail stores.
With the rise in companies like H&M and Zara as the top players in fast fashion in the early 2000s, the economy experienced a significant boom in the industry for fast fashion because of their ability to comprehend trends and satisfy their customers’ demands at a faster pace.
But as the ages progressed, the essence of success became sheer speed. Consumers shifted from kins to kings, expecting their demand to be met by the hour. The rise of e-commerce, social media, and the “see now, buy now” mentality, contributed to consumers’ expectations for an even accelerated pace.
The United Kingdom recognised the need for even greater speed for the fashion industry to thrive. With the introduction of retailers like Boohoo and Fashion nova, the ultra fast-fashion era began.
Around this decade, the highly populous Chinese consumers were brought online due to the explosive growth of mobile devices. This was a key factor in propelling the fashion industry into overdrive and bringing about the era we know today as real-time retail.
Stitching style and speed in real-time
The biggest player that mastered this phenomenon was none other than the Chinese brand S H E I N. China’s Shein originated in 2008 under the alias ShelnSide where the motive was to ensure trendy fashion items were available at an affordable rate in the market.
Although it originally focused on the Chinese market, Shein expanded globally and grew into one the most populars brands that have beautifully integrated fashion with business. With a sophisticated and expansive business model, Shein consistently delivers on consumer expectations.
Featuring one of the most extensive supply chain networks among fast fashion companies, SHEIN can swiftly respond rapidly to changing fashion trends, reducing the time it takes for a product to move from the design phase to being available for purchase.
Their global distribution networks ensure their products reach 220 countries! But the core of Shein’s successful business model is its dynamic nature.
Their model has been orchestrated in such a way which puts SHEIN within the capacity to respond to customer demand immediately which is what this fast paced generation likes.
But what sets SHEIN apart from the rest is not only its expansive distribution system but its ability to respond to clientele demand, down to the very second.
This ability is why between March 2020 and March 2022, SHEIN’s market share more than doubled. It remained the highest, and even surpassed the combined shares of Zara and H&M, allowing it to stay ahead in the competitive market. This dominance has persisted, with 2023 revenue figures suggesting that Shein has already outranked both H&M and Zara. With an ambitious growth target of 40% for this year, Shein is not just aiming high but also on track to hit the mark, solidifying its position at the forefront of the fiercely competitive fashion market.
Further data reveals shein’s popularity has in majority been received through the mode of searches online, highlighting the importance of optimised listings.
A pivotal factor in Shein’s success can also be attested to its low pricing strategy tailored specifically to appeal to the Gen Z demographic. The brand’s hyper-fast production process, quick delivery speed, budget driven pricing have all contributed to the success of Shein.
Furthermore, Shein’s integration of data-driven insights into its product offerings has solidified its position in the market.
How to Elevate Your Retail Game in Real Time
The trajectory of fast fashion’s future remains uncertain till date, with debates on whether it will persist or cease to exist. But amidst this ambiguity, this case study highlights the significance of a brand’s ability to adapt and respond in real time to consumer demand.
This is absolutely essential in ensuring your brand remains at the forefront in any marketplace.
This is exactly what BRIO helps you with.
Brio’s AI system serves as a vigilant guard, tirelessly monitoring the market in real time, ensuring that every element which is crucial for a successful sale is not just addressed but optimised.
With regular product health checks, inventory visibility tracking, content auditing, review analysis, real time market intelligence and highly accurate forecasting, BRIO makes sure you are covered from all sides, leaving no aspect to chance.
Even the intricate challenges within the fashion industry known for its volatility find resolution within BRIO’s capabilities.
All these bold yet subtle factors that determine whether your business makes that sale are what BRIO takes care of.
As the future of fast fashion and commerce takes shape, BRIO highlights how technological prowess can empower businesses to stay ahead and flourish in an ever-evolving and competitive environment. Market sovereignty hinges on the security and success of your brand and BRIO is poised to assist in achieving precisely that with not just adaptation but excellence.
Delve into a realm of unparalleled offerings as we employ distinctive parameters and competition-centric pricing strategies, harnessed through our deep-learning algorithms. These algorithms, rooted in extensive historical data, booking and cancellation patterns, and a myriad of other influential factors, alleviate the burden of making subjective, gut-feel-based pricing decisions.
Our sophisticated algorithm, comprising 83 parameters, goes beyond conventional approaches by incorporating demand forecasting on diverse routes, considerations for discounts, vigilant tracking of market trends, and much more.
Book a free demo of our automated retail solutions or contact our optimization experts at info@sciative.com.
To see how BRIO can empower your brand, ensuring it not only survives but thrives, visit sciative.com
