According to data from the General Administration of Customs, China's cross-border e-commerce import and export volume reached RMB 2.63 trillion in 2024, marking a year-on-year increase of 10.8%. Its proportion in foreign trade has grown from 4.9% in 2021 to 6% in 2024. Currently, China's cross-border e-commerce network spans over 220 countries and regions worldwide, with more than 120,000 cross-border e-commerce entities involved. These entities cover various industries such as clothing, beauty and makeup, home furnishing, digital products, maternity and baby products, and span the entire trade chain, including production, manufacturing, warehousing, logistics, and transportation. Amidst the steady progress and continuous expansion of the cross-border e-commerce industry, SHEIN, as a globally leading online retailer of fashion and lifestyle products, has become a significant force driving small and medium-sized enterprises (SMEs) to achieve new breakthroughs in their development, thanks to its unique and successful business model coupled with a robust empowerment system.

Recently, the shopping app ranking released by market consultancy PYMNTS showed that SHEIN surpassed Nike, Amazon, Ikea, Walmart, and others to become the most highly rated shopping app among global consumers. PYMNTS believes that strategic innovation and consumer-centric strategies have made SHEIN the most highly rated shopping app. With its innovative digital on-demand flexible supply chain model, SHEIN can provide consumers with fashionable products at high cost-effectiveness while reducing waste at the source. While rapidly developing with its flexible supply chain model, SHEIN has also driven the upgrading of the entire fashion apparel industry. A large number of small and medium-sized enterprises have seized the growth opportunities of cross-border e-commerce by becoming suppliers of SHEIN's own brands.

Wang Feng and Li Li (pseudonyms), a post-90s couple from Foshan, Guangdong, run a children's clothing factory, which serves as a typical case of SHEIN's digital empowerment. After becoming a supplier for SHEIN's own brand, the couple's factory saw a threefold increase in sales in 2024 compared to 2022.

Wang Feng has been involved in the garment industry for a long time. In 2009, he joined his father's garment factory in Foshan, which mainly handled foreign trade orders at that time. In 2013, after taking over the management of the factory, Wang Feng led his team to embrace the wave of domestic e-commerce transformation. In 2015, with the rapid growth of online store revenue, he invited his wife Li Li, who works in a hospital, to join him. However, three years ago, the domestic e-commerce business fell into a difficult situation. The couple keenly perceived the growth potential of cross-border e-commerce and approached SHEIN with an exploratory mindset.

After collaborating with SHEIN, a series of changes, from organizational structure adjustments to digitalization and lean empowerment in various production links, have transformed the factory from its former self. The once extensive management of a small family business has gradually grown into a modern enterprise with fine management. Li Li said with emotion, 'With SHEIN's 'methodology', now when I encounter problems, I learn to calmly analyze and review the root causes.' Wang Feng also expressed that the greatest joy now is to be able to bring prosperity to his employees.

SHEIN's flexible supply chain model, known as 'small order, fast response,' differs significantly from traditional foreign trade and domestic e-commerce models. This model requires merchants to closely monitor data changes during the operation period and adjust production strategies in a timely manner. It is difficult to achieve efficient operation if only one or two people are involved. Li Li recalled the scene when SHEIN employees first came to the factory to provide empowerment analysis: 'She took a data dashboard and analyzed the problems for us point by point, explained the composition of the data, and also told us suggested methods for improvement and expected goals. After multiple analyses, we gradually figured out the direction for operational adjustments.'

Guided by the staff in the SHEIN supplier department, Wang Feng and Li Li conducted weekly, monthly, and quarterly reviews multiple times, gradually establishing a complete management team. They recruited new positions such as main merchandising assistant, tail supervisor, and factory director, and allocated monthly optimization and growth indicators to each supervisor, encouraging employees to proactively identify and solve problems. They made comprehensive adjustments to the factory's sewing, tail finishing, and other processes, and were greatly encouraged by the growth of each data point. Now, Wang Feng and Li Li have achieved a shift in thinking from 'firefighting' to 'systematic', significantly improving the operational efficiency of the factory and managing it with greater ease. They are also confidently moving towards higher goals.

In order to drive the improvement of suppliers' comprehensive capabilities and market competitiveness, SHEIN previously announced an investment of 500 million yuan over five years to deepen supplier empowerment efforts. By the end of 2024, the SHEIN brand had invested a total of 250 million yuan, continuously empowering suppliers with differentiated competition and training empowerment in areas such as technological innovation, training support, factory expansion, community public welfare services, and green carbon reduction, helping small and medium-sized enterprises achieve new breakthroughs.

In this year's government work report, it is proposed to 'promote the development of cross-border e-commerce, improve the cross-border delivery logistics system, and strengthen the construction of overseas warehouses.' This is the 12th consecutive year that the government work report has mentioned cross-border e-commerce, highlighting China's emphasis on promoting this new form of foreign trade and new growth driver. In this process driven by the tide of digitalization, small and medium-sized businesses like Wang Feng and Li Li, riding on the 'giant ship' of SHEIN, have fully enjoyed the development opportunities brought by cross-border e-commerce. Wang Feng and Li Li are confident that their sales will double again this year.

It is foreseeable that, with the continuous support of national policies, the cross-border e-commerce industry will embrace a broader space for development. Platforms like SHEIN will persistently refine their empowerment systems and allocate more resources towards technological innovation, talent cultivation, and industrial upgrading, providing more comprehensive and in-depth support for small and medium-sized businesses. Leveraging this historic opportunity, small and medium-sized businesses will continuously enhance their competitiveness, securing a foothold in the global market.

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