The Formation Mechanism and Evolutionary Pathways of Data-Driven Core Competence: A Case Study of the New Retail Enterprise SHEIN

Qinghua Hu

doi:10.54254/2754-1169/2025.LH27714

Advances in Economics, Management and Political SciencesOpen access

The Formation Mechanism and Evolutionary Pathways of Data-Driven Core Competence: A Case Study of the New Retail Enterprise SHEIN

Research Article

Open Access

The Formation Mechanism and Evolutionary Pathways of Data-Driven Core Competence: A Case Study of the New Retail Enterprise SHEIN

Qinghua Hu ^1*

¹ The Hong Kong University of Science and Technology

^*Corresponding author: alice2004813@gmail.com

Published on 14 October 2025

AEMPS Vol.226

ISSN (Print): 2754-1177

ISSN (Online): 2754-1169

ISBN (Print): 978-1-80590-345-1

ISBN (Online): 978-1-80590-346-8

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Abstract

Amidst the wave of the digital economy, the data element is fundamentally reshaping the corporate competitive landscape. Emerging "Ultra-fast Fashion" retailers, epitomized by SHEIN, have risen rapidly through a unique data-driven business model, posing both a challenge and a complement to traditional theories of core competence. This paper aims to dissect the internal composition of "Data-Driven Core Competence" (DDCC) and systematically unveil its formation mechanism and evolutionary path from "data to value." Employing an in-depth single-case study methodology, this research analyzes multi-source secondary data on SHEIN. The findings propose a four-stage dynamic evolution model for DDCC formation: "Data Sensing – Algorithmic Insight – Capability Embedding – Value Co-creation." This model reveals that DDCC is not a static resource but a dynamic capability system, continuously self-reinforced and propelled by a "Data Flywheel." Through digital management that transcends organizational boundaries, SHEIN deeply integrates supply chain members, global consumers, and data elements into a cohesive digital ecosystem, thereby unifying distributed production with centralized management. This has enabled the company to successfully exploit the "attitude-behavior gap" among Gen Z consumers regarding sustainability perceptions and consumption patterns. Theoretically, this study integrates the Resource-Based View (RBV) and the Dynamic Capabilities View (DCV) in the digital consumption context, thereby deepening the understanding of core competence. Practically, it provides an actionable strategic framework and implementation path for enterprises seeking digital transformation, particularly those in cross-border e-commerce and traditional manufacturing.

Keywords:

Data-driven, Core Competence, Ultra-fast Fashion, SHEIN, Dynamic Capabilities, Digital Ecosystem

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