Peter Pernot-Day, SHEIN: It is important to have a global strategy, but also to remember to act locally

What is the on-demand production model used at SHEIN?

SHEIN was founded to ensure that everyone has access to the latest fashion trends. To this end, we use specific technologies. We have developed an on-demand production model that is the complete opposite of the traditional way of producing garments. Our focus is not on supply, but on demand. We only produce enough clothes to meet existing demand.

How do you do it?

Thanks to technology. It all starts with a customer-friendly purchasing process in the mobile app or online shop. Then we use the industry's best supply chain management system, which allows us to produce very small batches of garments. We usually produce between 100 and 200 units for the world and then check demand. This allows us to offer our customers a wide range of clothes and give them a choice. The effect is twofold. Firstly, the clothes cost less, and secondly, our customers can express themselves through their clothes. In our opinion, this is what is most beautiful about fashion.

Of course, price is of paramount importance to consumers. What are the reasons for the low prices of SHEIN products?

Customers are finding it increasingly difficult to meet their basic needs as the cost of living rises around the world. In my opinion, technology as advanced as ours makes it possible to purchase garments at more affordable prices and to reach ever more customers. This not only reduces waste, but also has a positive impact on what is most important to customers - the state of their wallets.

SHEIN has several warehouses in Poland. What role do they play and what is their importance at the European level and more widely?

The Polish market is of key importance to us and the local team is at the forefront when it comes to the efficiency of operations here on the ground. Although our European headquarters are in Ireland, the centre of our operations is in Poland, as this is where our returns and fulfilment centres are located.

We have just announced the recruitment of a new technical team in Warsaw, who will be responsible for improving website performance, application development, data analytics, cyber security and privacy compliance. We employ people in Poland because there is no shortage of talent in the local market.

Why was Poland chosen as the location for the SHEIN warehouses?

Poland's economy is growing dynamically, and as a result a great deal is happening here economically. Many innovations are being introduced, new business models are being developed and investments in infrastructure are being made. The Polish economy is based on dynamics, and SHEIN is a dynamic company. We are looking for vibrant markets, energetic and talented employees who will help us achieve our mission. And that is exactly what we found in Poland. We are extremely pleased with the investment made here and are delighted to have so many great people working for us in Poland.

How do you assess the development of SHEIN on the Polish market so far?

The Polish market is of key importance to us in the European Union. It is as important as the French, German, Italian and Spanish markets. Poland is invariably very important to us. We have seen significant growth here, but more importantly, we have a talented workforce in Poland, employed in the returns and fulfilment centres. As I mentioned, a new team will also start working in Warsaw. Poles show a lot of energy and enthusiasm in them. We are very pleased about this.

Working with local communities, authorities and partners remains at the forefront of the business strategy for many organisations. How does your brand work with local partners and institutions?

A global company must engage with the local community. Of course, you need to have a global strategy, but you also need to remember to act at a local level.

That is why, in every country where we operate, we focus on transparent cooperation with local authorities and compliance with the regulations. We also try to reach out to not-for-profit organisations operating in the region and engage in partnership activities.

We have undertaken several charitable initiatives. We provide financial support for local community activities so that young people have the opportunity for a better future. This is part of our local strategy. We are a big company and we operate in many countries, but the most important thing is what we do for the local communities, because they are where our customers live. This is exactly how we want to operate in each of our markets. Including in Poland.

PARTNER: SHEIN