Ever wonder how Shein, the budget-friendly fast fashion giant, manages to keep pace with trends seemingly overnight? According to Peter Pernot-Day, the company’s head of strategic and corporate affairs, it all comes down to Shein’s “micro-production” model—a system that allows for lightning-fast turnaround based on real-time demand.
“We are precisely tailoring the supply of products to the actual demand in the marketplace,” said Pernot-Day while speaking at Web Summit Vancouver today (May 30). Unlike traditional retailers that typically manufacture between 50,000 and 100,000 units per item months in advance, Shein starts with small batches—just 100 to 200 garments—based on emerging trends.
Shein then uses data from its e-commerce platform to assess interest, tracking metrics like product hovers, cart additions and social media shares. This real-time feedback enables designers to experiment boldly and helps the company maintain a wide range of styles while minimizing overproduction, said Pernot-Day.
Founded in China and now headquartered in Singapore, Shein is known for its low-cost, trend-driven clothing. The company was valued at as much as $100 billion in 2022. But with a potential IPO in the U.K. on the horizon and mounting economic challenges—including the Trump-era tariffs and the removal of the “de minimis” exemption that previously allowed goods under $800 to enter the U.S. duty-free—Shein is reportedly under pressure to slash its valuation to around $30 billion. The company also continues to face criticism over labor practices, intellectual property disputes and environmental impact.
Still, Pernot-Day argued that Shein’s on-demand production model actually reduces waste. Because the company only manufactures what consumers are likely to buy, he said, excess inventory remains in the “very low single digits.”
In response to claims that Shein fuels overconsumption, Pernot-Day also defended the durability of its products. “Around 68 percent of shoppers wear Shein products multiple, multiple times,” he said, pushing back on the idea that the retailer produces “disposable” fashion. “When you look at the data, when you talk to our customers, they’re keeping our clothes for longer, and the principal way in which they dispose them is through gifting.”
