SHEIN Statistics - The Brand's Place, Reach & Controversies (2024)

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SHEIN Statistics - The Brand's Place, Reach & Controversies? ›

In October 2022, Chinese fast-fashion conglomerate Shein once again found itself facing allegations of unethical business practices, just another on their long laundry list of wrongdoings that include copying small businesses, allegations of modern slavery and violating labour laws.

In October 2022, Chinese fast-fashion conglomerate Shein once again found itself facing allegations of unethical business practices, just another on their long laundry list of wrongdoings that include copying small businesses, allegations of modern slavery and violating labour laws.

Targeted Audience Shein heavily targets young women between the ages of 16 to mid 30s who have some form of fashion consciousness. In addition to this, their main selling point is their extremely affordable prices targeting those price-sensitive customers on a budget.

Affordability: Shein positions itself as an affordable fashion destination, targeting budget-conscious consumers and younger demographics. Its pricing strategy aims to offer trendy items at accessible price points.

According to media reports, the Chinese retailer has been accused of breaching its own legal settlements as it reportedly continues to offer “counterfeit” items that it had agreed to put a stop to, building on the persistent allegations and claims of repeat transgressions that have mounted over the years.

Why do people say Shein is unethical? People say Shein is unethical due to concerns about its environmental impact, labor practices, and alleged design theft. The brand's heavy use of harmful materials, rapid production, and lack of transparency raise ethical issues.

Shein has been criticized for its lack of transparency regarding its manufacturing processes. Without this information, it's difficult to determine if workers are being treated fairly or if sustainable practices are being used.

The biggest segment of SHEIN's audience is women aged 25-34. SHEIN was the fifth-highest-earning e-commerce store in 2022, as it made $26.15 billion in total worldwide that year.

Shein (/ˈʃiːɪn/ SHEE-in; styled as SHEIN; Chinese: 希音; pinyin: Xīyīn) is a fast fashion retailer. Founded in Nanjing, China, in October 2008 as ZZKKO by entrepreneur Chris Xu, Shein grew to become the world's largest fashion retailer as of 2022. The company is currently headquartered in Singapore.

What is the weakness of SHEIN? ›

Unavailability of warehouses: The SHEIN supply chain lacking a warehouse can be a severe weakness for the organization.

Shein has employed an encirclement attack strategy by launching on numerous fronts to encircle a large area of the market.

Outsourcing labor

One of the key ways that Shein and other fast-fashion brands keep prices low is by outsourcing manufacturing labor to cheaper markets, said Dana Thomas, a Paris-based fashion journalist and author of “Fashionopolis: The Price of Fast Fashion and the Future of Clothes.”

Artists have filed a racketeering lawsuit accusing it of stealing designs. A congressional report says Shein abuses a loophole in import tax laws. Lawmakers have called for an investigation into alleged use of forced labor.

There have been rumors all over social media that these lawsuits and allegations will cause Shein to shut down in 2024, but according to several recent news reports, these rumors seem to be false. Shein is currently privately owned, and in 2024 they are planning to switch to a public ownership.

Harmful Chemicals from Fast Fashion

The fast-fashion industry, of which SHEIN is a part of, has been criticized for using harmful chemicals in the production of its garments. These chemicals can have negative effects on the environment, as well as on the health of workers and consumers.

'We cannot stand idly by while citizens' health is at risk. ' Children's products sold by fast fashion behemoth Shein have been found to contain toxic substances hundreds of times above acceptable levels, researchers say.

Unfair Labor Practices

In its pursuit of cost-cutting production, SHEIN has faced allegations of exploiting labor in developing countries. Unsafe conditions, underpaid workers, and unchecked working hours paint a grim picture of this industry's underbelly.

At the same time, Shein and Temu have been accused by American lawmakers of failing to ensure their supply chains comply with the Uighur Forced Labor Prevention Act (UFLPA) passed last June to penalize Beijing's systematic rights abuses against the Muslim minority group in the western Xinjiang region.

It works with over 6,000 suppliers throughout China. The company has been accused of using manufacturers that have violated labor rights. A 2021 investigation by the Chinese digital publication Sixth Tone uncovered a pattern of "loose oversight and poor working conditions" at some of Shein's manufacturers.