Shein's Global Head of Strategy, Peter Pernot-Day, unveils the company's
Key takeaways
Shein's 'on-demand production' model minimizes inventory waste by producing small batches (10-100 units)
Shein is actively working to reframe its public image by engaging with media, launching pop-ups, and collaborating with influencers
Understand that influencer marketing, while powerful, can backfire if not executed transparently and ethically. Shein's factory transparency campaign faced significant backlash.
Growth in international markets like the U.S. and Brazil requires a tailored strategy beyond just product offerings, including adapting to local regulatory and cultural landscapes.
Proactive PR and transparent communication are critical for fast-growing companies facing intense scrutiny, especially regarding ethical and environmental concerns.
Shein has been around for nearly a decade, but we're just beginning to learn more about the brand now.
Over the last two years, the e-commerce platform has taken the world by storm. In 2021, it caught most people by surprise when it became the most downloaded U.S. iPhone shopping app. Today, it is the number three top app on App Store.
But with this rise to fame has come a lot of questions. For one, Shein is largely known as a seller of fast-fashion apparel. Its products are cheap, and it sells thousands of them -- which to many, seems like a model that's both wasteful and reliant on cheap labor whenever possible. But after years of seeming silence, Shein is now talking and trying to give a sense of how the company works.
"We like to call [our model] on-demand production," said Peter Pernot-Day, Shein's global head of strategy and corporate affairs. "The way it works is: we will identify potential products, we'll work with one of our small-batch production partners, and we'll make between 10 to 100 copies of that garment -- we'll then offer it for sale," he said. If the garment resonates, Shein goes back and finds a partner who can manufacture it at scale. "That's allowed us to operate profitably -- it's also allowed us to dramatically reduce excess inventory waste."
Pernot-Day joined the Modern Retail Podcast this week and spoke about the company's overall direction, its strategic growth in both the U.S. and countries like Brazil as well as why it's attempting such a big marketing push now after years of relative press silence. He started as Shein's general counsel in 2021 and took this more front-facing role last year
For the past year, Shein has been facilitating a marketing spree to try and tell its story on its own terms. This has included pop-ups around the U.S., as well as work with influencers. One recent influencer promotion sent TikTok personalities to factories in China, who then posted about their experiences on social media. This was met with criticism
Frequently asked about this episode
What does this episode say about dtc strategy?
Shein's 'on-demand production' model minimizes inventory waste by producing small batches (10-100 units)
What does this episode say about brand & content?
Shein is actively working to reframe its public image by engaging with media, launching pop-ups, and collaborating with influencers
What does this episode say about supply chain & operations?
Understand that influencer marketing, while powerful, can backfire if not executed transparently and ethically. Shein's factory transparency campaign faced significant backlash.
What does this episode say about founder & leadership?
Growth in international markets like the U.S. and Brazil requires a tailored strategy beyond just product offerings, including adapting to local regulatory and cultural landscapes.
What does this episode say about dtc strategy?
Proactive PR and transparent communication are critical for fast-growing companies facing intense scrutiny, especially regarding ethical and environmental concerns.
