What is Shein? The Chinese fast fashion retailer explained China Britain Business Council

“I’m shocked when people say they bought shoes from Shein like bby with that quality y’all are brave lol,” one person tweeted. In September 2021, Shein updated its website to include a “Supply Chain Transparency Statement” and a code of conduct that its suppliers and manufacturers must agree to. Producing clothes, in itself, negatively impacts the environment in a number of ways. For one thing, polyester — a material that Greenpeace predicts is used in 60% of modern clothing — emits more greenhouse gases (like CO2) than alternative materials, like cotton (via World Research Institute). Also, when washed, polyester releases microplastics (which can take decades to centuries to break down) into the ocean, harming marine and human species when ingested, per The Guardian.

Critics question Shein’s manufacturing and supply chain practices

Shein has more followers on TikTok than any other apparel retail brand and is the most Google-searched apparel retailer in the US, according to UBS data. Ultra-fast-fashion brand Shein has become one of the most divisive brands in fashion due to its carbon heavy production style and overall lack of sustainability credentials. In December, it was reported that Shein is now exploring moving to an online marketplace platform to enable other merchants to sell directly to customers, rather than under Shein’s label, according to a memo to investors viewed by The Wall Street Journal.

2012: founding and early business model

It discovered that Shein’s suppliers often subcontract orders to small workshops inside rundown buildings to cut costs. Because these businesses don’t deal directly with Shein, the company cannot verify their working conditions. Shein has headquarters in Singapore and in the manufacturing hub of Guangzhou, China. The company has been accused of using manufacturers that have violated labor rights.

It’s cheap – the average item costs £7.90

One woman filmed a box truck delivering a giant box to her driveway after she said she bought $2,000 worth of Shein products. In 2015, Xu shifted the business to focus on fast-fashion apparel and rebranded as Shein, pronounced “she-in.” But the company’s rise didn’t come until 2020, when quarantined shoppers gave a boon to e-commerce. He said that because their supply chains originate from China, Shein and Temu are “likely to receive even greater scrutiny and suffer higher tariffs” compared to other businesses that manufacture in Bangladesh and Morocco, for example.

• She accuses the company of “preying on the fears of outfit repetition syndrome”, with Shein pieces in haul videos “likely to be discarded to landfill after just a few wears and washes”.
• The $12.99 premium T-shirt was made of richer material, a firm cotton, though it didn’t fit quite right.
• The survey found that Shein customers buy or resell secondhand clothing online one to four times a year on average.
• But by virtue of Shein’s location and software technology, the retailer developed a speedy edge on its competitors.

It has drawn in shoppers by getting pop stars like Rita Ora and Katy Perry to perform at its virtual concerts, but it also attracts a vast amount of organic user-generated content. It’s also snapped up competitors like Missguided, while Xu Yangtian, who rarely gives interviews, is now said to be one of China’s richest men. “So at the back of my mind I feel quite bad when I purchase things, but at the same time it’s convenient,” she tells the BBC. Fifty-two percent of Shein shoppers said they considered caring for the environment to be a big part of their personal identity, compared to 47% of overall respondents. And 67% of Shein shoppers said they were willing to pay more for environmentally sustainable goods, compared to 53% overall.

Since Shein ships its orders directly to customers from Chinese warehouses, packages worth less than $800, or small-value shipments, generally remain duty-free. In other words, Shein has managed to circumvent roboforex review paying both export and import taxes for about three years, something brick-and-mortar retailers aren’t able to avoid. But by virtue of Shein’s location and software technology, the retailer developed a speedy edge on its competitors.

Shein apologises for selling Muslim prayer mats

In August, Reuters reported that Shein has yet to disclose information about its working conditions and supply chain to the British government, which the retailer is required to do under UK law. Shein had also previously falsely stated on its website that its factories were certified by international labor standard bodies, according to Reuters. Like Temu, Shein keeps prices low by selling products directly from a network of third-party manufacturers in China. The real key to its success, however, lies in its ‘on-demand’ model, which leverages user data to thinkmarkets forex broker review quickly boost or shut down production of items based on how well they’re selling or what people are searching for.

However, in the long term, it may need to reflect on its business practices if it wants to stay on the good side of legal and regulatory bodies in countries like the UK and the US. Beyond copyright, like other Chinese platforms, Shein is also facing scrutiny for its collection and use of data, especially in the US. A report published by the US-China Economic and Security Review Commission in April 2023 accused platforms such as Shein of “posing risks and challenges to… regulations, laws, and principles of market access”.

In the meantime, influencers are also under increasing criticism from environmental and workers’ rights organizations for working with Shein—with some even deciding to part ways as a result. It’s a huge challenge, with the fashion industry accounting for up to 8% of global carbon emissions, according to one UN study. It has also been accused of copyright infringement and faces lawsuits from the likes of the maker of Dr Martens boots, although the e-retailer has previously denied any wrongdoing. Cline told me that when companies such as Shein brag about how efficient they are, her thoughts leap to the people, often women, whose bodies and minds wear out so that the company can maximize revenue and minimize costs. “They’re the ones who have to be flexible and work all night so the rest of us can press a button and have a dress delivered to our door for $10,” she said.

Shein, pronounced “she-in”, was set up in China in 2008 by entrepreneur Xu Yangtian and started out selling wedding dresses online. While it’s expected for Shein’s quality to be subpar based on the website’s prices, some Shein fails have been so shocking that they have actually proved newsworthy, such as one story about a woman’s shoes melting while she attended a music festival. In May 2022, Emma Carrasco attended the Lovers & Friends festival in Las Vegas. She bought a new pair of shoes — Shein’s Minamilist Platform Chunky Pumps — for the occasion, but they didn’t end up lasting long. Carrasco told Insider that her heel melted and “deflated,” as is shown in her viral video of the experience.

She also saw children’s clothing that seemed not to meet safety standards set by the US Consumer Product Safety Commission. In July 2021, following testing, the commission announced a recall for thousands of Shein-branded children’s sleepwear sets that violated the federal flammability standard, leaving children exposed to potential burn injuries. In December, a Canadian health agency recalled a Shein children’s jacket after a Canadian Broadcasting Corporation investigation found that it contained dangerous amounts of lead. When she raised concerns, the former employee said, her supervisors didn’t respond.

She noticed that offensive items, such as a swastika necklace and a Muslim prayer mat sold as a decorative rug, were removed only after customers complained. Shein isn’t the only company that makes small initial orders with suppliers, then re-ups when products do well. But Shein has an advantage over Western competitors; while many brands, including Boohoo, use suppliers in China, Shein’s own geographical and cultural proximity allows it to be extra nimble. “It’s very difficult to build this kind of company and almost impossible for a team that’s not based in China to do this,” Chan, from Andreessen Horowitz, said. Our digital supply chain is not just a feature of our business; it’s the nerve center that powers our operation.

Now, though, an emerging generation of “ultrafast-fashion” companies has come along, and many are doing little, if anything, to adopt better practices. In a study, computer vision libraries external, it analysed 30 of the biggest fast fashion retailers in the UK and scored their websites according to how many of these prompts customers saw before making a purchase. In January 2021, after repeatedly being accused of ripping off independent designers, Shein launched Shein X, a program intended to “inspire and support young designers to chase their dreams,” according to the company’s website.