The Chinese-founded Shein has become one of the world’s most popular fashion websites, and it’s responsible for transforming how people shop online. The company is known for releasing a new crop of styles every day, turning out new trends even faster than competitors like Zara.
Shein’s success has a lot to do with its business model and the way it operates. Shein relies on an online marketing strategy that tracks consumer behavior with AI, allowing it to identify hot items and adjust production accordingly. This allows it to turn out new designs more quickly than legacy brick-and-mortar rivals, which typically have a three-week turnaround time.
It’s also got a unique clout among Gen Z shoppers, who have become the company’s biggest customers. These teens and 20-somethings are notoriously stingy with their spending habits, but Shein’s low prices have allowed them to buy clothes and accessories without breaking the bank.
They share their finds on social media and often post “haul” videos to TikTok, another Chinese app that’s become popular with young people. These video posts help Shein build a following of young, online shoppers who love its fast-fashion offerings.
But while Shein’s growth has fueled a wave of positive publicity, there are still concerns about the company’s impact on workers and the environment. In particular, it’s being scrutinized for its use of cotton from the Xinjiang region, where US officials have accused China’s President Xi Jinping of human rights abuses.
In an effort to make itself more transparent, Shein has opened pop-up shops in cities across the globe. While these aren’t a common occurrence, Shein is attempting to make its brand more visible in local communities and engage with people outside of the traditional online-only world.
The Shein pop-ups aren’t just in New York or Singapore, they’re also being held in smaller towns, such as Montebello, a suburb of Los Angeles. The aim is to reach potential customers and to inspire them to share their Shein-purchased outfits on social media.
Shein’s CEO, Chris Xu, has been cutting some of his business ties with his native China over the past year. He started transferring Shein’s management and legal roles overseas in late 2020, and has been relocating some of the business assets to New York and Singapore.
Despite these changes, a November 2021 report by the watchdog group Public Eye found that some Shein suppliers had been exploiting workers at their factories. Several workers had worked 12-hour days and were not provided with the right equipment. Others had blocked corridors and stairways in their workshops, according to the report.
As a result, some of Shein’s garments aren’t up to international labor standards. A number of Shein’s suppliers have been subjected to audits by the company, but some have not.
The company has a strong belief in ethical labor practices and claims that it strictly abides by laws against child labor. Its Supplier Code of Conduct states that it “strictly complies with all local laws and regulations regarding labor practices, including the elimination of forced labor.”
A spokesperson for Shein told the Guardian it takes its suppliers’ welfare extremely seriously, but it does not condone any form of slavery or human trafficking in its supply chain or partner factories. Shein identifies these issues and is working with partners to address them.