Fast-fashion brand Shein has taken retail by storm, and despite controversies, it's the most Googled clothing brand. Why is Shein so cheap?
By Kate Zuritsky
Jun. 2 2023, Updated 11:27 a.m. ET
In this article
Why is Shein so popular?
Why is Shein so cheap?
What are the negatives of Shein?
Chinese fast-fashion retailer Shein is one of the most buzz-worthy and Googled brands in fashion right now, and it's also one of the most controversial. In 2022, it officially became the largest fashion retailer in the world after it secured a $100 billion valuation in its last fundraising round, which made it bigger than Zara or H&M.
While the retailer may be a bit unknown to those older than 30, the Gen Z crowd practically worships the brand and quickly made it one of the most popular shopping apps in the world. Founded by Chinese entrepreneur, Chris Xu, in 2008, one of the biggest secrets to Shein's success has been its massive social media presence and influencers flaunting their "Shein Hauls."
Everyone loves a great deal, but why is Shein so cheap?
Why is Shein so popular?
Why is Shein so popular? Social media has been the secret to their success. They have over 29 million followers on Facebook and Instagram, and billions of views on TikTok and YouTube to watch influencers unpack Shein hauls and use campus advisors to recruit on college campuses.
Shein sped-up the fast fashion model using algorithms to create the latest trends in an instant, and with more than 2,000 designers on the team and over 6,000 suppliers, they can produce over 10,000 products a day.
Shein has mastered the art of FOMO. They produce lines in very small quantities, with fewer than 100 pieces ordered of each design, and use real-time data to see how well each item performs. Then they'll order more of the most popular SKUs and discontinue the others.
The other reason Shein is so popular is because the clothing and accessories are just so cheap!
Why is Shein so cheap?
Shein originally specialized in wedding dresses sourced from a Chinese wholesale clothing market in Guangzhou. In 2011, Chris Xu renamed it Sheinside and expanded to include women’s clothing.
Then it was shortened to Shein and expanded its reach after acquiring the Chinese e-commerce company Romwe. By 2016, Shein had its own team of 800 designers and prototype makers. With people stuck home during the COVID-19 pandemic, Shein reached everyone online and pulled in $16 billion in sales in 2021.
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Shein sells clothing at seriously discounted prices with tees, sweaters, and skirts selling for as low as $2. According to one of the founders, they're able to sell items so low because it sells 98 out of 100 pieces it buys from producers.
Shein has few overheads costs since they sell directly to consumers online. Plus, their marketing strategy is dominated by mid-tier influencers, which is a lot cheaper than running ad campaigns.
Most of their clothing is made of cheap virgin plastic materials like polyester, nylon, and other synthetic fabrics so they fall apart quickly. Plus, they subcontract production so whomever can fulfill their order the quickest gets the contract which leads us to one of the main reasons the clothing is so cheap ... it's outsourced.
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What are the negatives of Shein?
Despite being so popular, Shein has been the center of many controversies. For starters, Shein uses a lot of synthetic fabrics that can take 20 to 200 years to decompose. The clothes are made to be worn a few times, replaced and then thrown away which isn't sustainable and bad for the environment.
Secondly, Shein exploits their workers by making them work about 75 hours a week and they only pay them for what they make. It's an unstable job because they never know how much they'll make each week.
Shein has also been accused by many retailers of stealing their designs, which has led to lawsuits and outraged designers. The real reasons Shein's products are so cheap is because its practices contribute to textile waste and global warming, they have a shady supply chain, and they're exploiting the workers so they can offer unrealistically low prices.
Direct-to-Consumer Model: Shein operates on a direct-to-consumer model, which means they sell their products directly to customers without involving any middlemen. By cutting out the intermediaries, Shein eliminates additional costs associated with distribution, warehousing, and retail markups.
Shein outsources their labor where wages are cheaper.
Because Shein spends less money on paying their seamstresses and factory workers, they're able to charge lower prices for their clothes while still making a profit. While Shein says they pay their workers fairly, many people believe Shein exploits their workers.
The e-commerce brand, which is reliant on digital influencer marketing to generate the majority of its advertising, has been found to severely underpaid workers, exploit and plagiarize the designs of emerging creatives, has reportedly sold Nazi symbols and produces garments that contain an unsafe level of toxic ...
The company sells clothing that is cheaply and rapidly produced, then sold at incredibly low prices — many items are under $10. Shein gave fast fashion a whole new meaning by using AI technology to identify trends and an online-only model to churn out thousands of garments in record time.
Shein produces clothing in China to sell online in the United States, Europe and Asia excluding China. It does not own or operate any manufacturing facilities and instead works with around 5,400 third-party contract manufacturers, mainly in China.
Compromised Quality. The adage "you get what you pay for" rings true with Shein. Their extremely low prices often mirror the quality of their products. Many customers have reported poor fabric quality, inconsistent sizing, and clothes that quickly wear out or fade after a few washes.
In my experience, the clothing quality at Shein is as inconsistent as the sizing. For example, the leopard cardigan I ordered is thick and cozy and isn't at all scratchy or stiff. Additionally, it didn't shrink or stretch out even after wearing it for two straight days and washing it numerous times.
Is Shein legit or a scam? Shein operates as a legitimate online store on its website and app. With its roots in China and operational headquarters now in Singapore, Shein is known for an endless selection of stylish clothes and trendy accessories at appealing prices.
Shein clothing products are meant to be worn by the consumer, however since synthetic materials are not long-lasting, most Shein consumers' clothing last around 2 weeks before it usually ends up in the landfill.
These materials, while cost-effective, often detract from the tactile quality and longevity of the garments. As a result, many consumers find that SHEIN's clothing does not hold up well over time, leading to concerns about the brand's contribution to fast fashion's environmental impact.
Alicia Kearns of the Commons foreign affairs committee said “there are grave concerns about” the fashion giant's factory working conditions and in 2022 Shein admitted workers in two factories were working excessive hours. The environmental impact of its clothes has come under fire as well.
The average SHEIN salary ranges from approximately $27,452 per year for Human Resources Specialist to $167,413 per year for Business Development Manager. Average SHEIN hourly pay ranges from approximately $17.32 per hour for Cashier/Sales to $29.41 per hour for Maintenance Supervisor.
Is Shein legit or a scam? Shein operates as a legitimate online store on its website and app. With its roots in China and operational headquarters now in Singapore, Shein is known for an endless selection of stylish clothes and trendy accessories at appealing prices.
Shein clothing products are meant to be worn by the consumer, however since synthetic materials are not long-lasting, most Shein consumers' clothing last around 2 weeks before it usually ends up in the landfill.
After using them for a period, she said both Temu and Shein sold merchandise of good quality. But be aware that unreliable sellers on these platforms may lie about product quality in their stores. That is why some shoppers criticized the poor quality of Temu or Shein in their reviews.
Shein maintains that its low prices also reflect its “on-demand” production model, in which it manufactures items in small batches of just a few hundred items at once. That means the company does not have to store or manage unsold inventory in the same way that many competitors do. Temu uses a similar business model.
Introduction: My name is Patricia Veum II, I am a vast, combative, smiling, famous, inexpensive, zealous, sparkling person who loves writing and wants to share my knowledge and understanding with you.
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