In the 1980s Zara disrupted the fashion industry by radically reconfiguring the supply chain and creating the fast-fashion category
In the 1980s Zara disrupted the fashion industry by radically reconfiguring the supply chain and creating the fast-fashion category
In the 1980s Zara disrupted the fashion industry by radically reconfiguring the supply chain and creating the fast-fashion category. SHEIN is a Chinese online fast fashion retailer that was founded in 2008. During the pandemic, SHEIN achieved substantial sales growth and is now catching up with Zara. In 2021, SHEIN overtook Amazon as the most downloaded shopping app on the US iOS and Android app stores. SHEIN has developed its “fast-fashion 2.0” business model—using big data and algorithms to identify customers and their preferences.
Read the case study about SHEIN and answer the following questions:
- Describe how ZARA achieved success by changing the norms of the established fashion industry business model? (10 points)
- What is SHEIN’s value innovation(s) that differentiate (or gave competitive edge to) SHEIN from (over) other major players of the fast-fashion industry? (15 points)
- Looking at the available data (in the case study) explain how customer segments and markets are different between ZARA & SHEIN. What business strategy helped SHEIN to achieve that? (15 points)
- At the beginning of the case-study the authors provided an overview of Porter’s 5 analysis for the fast-fashion industry. Based on your understanding of SHEIN’s business, which force do you think SHEIN is most vulnerable to; and which force is SHEIN’s biggest strength? (15 points)
- Do you think SHEIN been able to create a Blue Ocean for its brand in the fast-fashion industry? Use an ERRC (strategy canvas) framework to compare the strategy that SHEIN pursued vis-a-vis its nearest competitors. (15 points)
- One important assertion of the case study is that SHEIN’s exponential growth is due to Covid-19 pandemic, when buyers stayed away from the shopping malls. Assume this is true. Now with the gradual opening of shopping malls & shopping centers, what would be your advice to SHEIN’s marketing team to retain/maintain its sales trajectory? (15 points)
- The environmental and sustainability impact of the rapidly rising fast-fashion industry is a major concern. McKinsey has estimated that the fashion industry is responsible for 4 percent of the world’s greenhouse-gas emissions, and emissions from textile manufacturing alone are projected to skyrocket by 60% by 2030 (1. https://psci.princeton.edu/tips/2020/7/20/the-impact-of-fast-fashion-on-the-environment 2. https://news.climate.columbia.edu/2021/06/10/why-fashion-needs-to-be-more-sustainable/ ) However, the industry is generating huge value in terms of both financial and consumer utility measures. What would you recommend to SHEIN to address sustainability and environmental concerns? (15 points)
Requirements: 2 paragraphs per question | .doc file
Masters Business
please explain and provide details as much as possible. the grading is relatively strict.
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