Shein, a fast-fashion store from China, is one of the most talked about and Googled fashion names right now. It’s also one of the most controversial. It became the biggest fashion store in the world in 2022 when it was valued at $100 billion in its last round of fundraising. This made it bigger than Zara or H&M.
People over 30 may not know much about the store, but Gen Z loves the brand and has quickly made it one of the most famous shopping apps in the world. Chris Xu, a Chinese businessman, started Shein in 2008. One of the biggest reasons for its success has been its huge social media presence and the fact that celebrities love to show off their “Shein Hauls.”
Everyone likes a great deal, but why is Shein so cheap? Swipe up for a reason…..
Reasons Why Shein Is So Cheap
Shein hires workers from places where wages are lower
Most of Shein’s plants are in China, where the minimum wage is lower than in countries like the US and UK. Because Shein pays their seamstresses and factory workers less, they can sell their clothes at lower prices and still make a profit.
Even though Shein says it pays its workers properly, many people think it takes advantage of its workers. Employees have said that they often work 18 hours or more a day and only get 0.27 yuan, which is only a few cents, per product they make.
Shein uses less expensive materials for its brand
Shein is one of the most well-known fast-fashion brands. Every day, they add about a thousand new clothes to their website. At first, they usually only make 50–100 of each new style and see how well they sell online. Then, they make a lot of the most popular clothes, generally with cheaper materials that aren’t as good.
- Fast fashion brands like Zara, H&M, and Fashion Nova make trendy clothes more quickly than traditional stores.
- Shein is one of the most famous and easy-to-get-to fashion brands because they are the only one that makes clothes on demand.
- Shein is also known for copying the designs of expensive brands and selling clothes that look like or are almost exact copies of those brands’ clothes for much less money.
Shein Has No Physical Stores; It’s an Online Brand
- Shein is different from other fast-fashion brands like Zara and H&M because they only sell their clothes online.
- They don’t pay rent, utilities, or workers to run their stores because they don’t have physical stores.
- This keeps the company’s daily costs low so that they can sell their clothes for less money.
- Shein has pop-up stores and events where people can try on clothes and buy them in person.
Shein sends goods directly to customers, which saves money on shipping
- Some clothing brands sell their clothes to retailers, who then sell them to buyers.
- Shein only sells clothes online, so they don’t have to pay another company to handle and sell them.
- Shein is also based in China, which doesn’t charge export taxes to businesses that sell directly to consumers.
- This makes it possible for Shein to cut their shipping costs even more.
Shein uses influencer marketing, which is a cheaper form of advertising
- You’ve probably seen a celebrity on Instagram, TikTok, or YouTube talk about how much they love their Shein haul.
- Most of Shein’s marketing is done by paying social media “influencers” to talk about their goods on social media.
- Influencer marketing is often cheaper and more effective than social media ads, commercials, and star endorsements. So, Shein spends less on advertising and gets more hits and sales.
- Influencer marketing works well because influencers already have loyal followers who accept what they say.
Shein always offers deals, which makes people want to buy more
- If you go to Shein’s website, the front page will probably have at least one discount code.
- Influencers who support Shein usually have discount codes that give their followers a certain percentage off their orders.
- Even though this makes prices cheaper for shoppers, the deals make people want to buy more. Since Shein makes a lot of money, they can sell their clothes at even lower prices.
- Most sales over $49 at Shein get free shipping. This also makes people more likely to buy more, which helps keep prices low.
What Is Shein?
Shein is a China-based online store that sells clothes. Shein was started in China in 2008 in the city of Nanjing. It mostly sells clothes, shoes, and items for women, but it also has clothes for men and kids. Shein sells its goods in more than 150 countries around the world. It is now one of the biggest online clothing stores, with sales expected to reach $100 billion in 2022.
Shein is said the same way as “she in.” This is because the company used to be called SheInside.
Why is Shein So Popular?
Shein recently shared a tweet-
“We’re excited to share our evoluSHEIN roadmap, our new framework to drive change within SHEIN and across our industry.”
We’re excited to share our evoluSHEIN roadmap, our new framework to drive change within SHEIN and across our industry. Together, we can create a more sustainable future for all. Read more: https://t.co/4Dsyc1ujMr pic.twitter.com/J9vSWbv3LG
— SHEIN News (@SHEIN_News) June 1, 2023
Shein is so well-known because it sells fashionable clothes at low prices. Shein is able to keep up with Gen Z and Millennials’ fast-changing fashion tastes. Shein’s many supplier links immediately let them know which styles are popular and which aren’t. Because they have a large network and can turn things around quickly, they can make new styles every day that keep their customers on the cutting edge. And most importantly, they do all of this without charging a lot.
Shein also has a great social media presence. They use famous influencers to promote their products, make limited edition collections with celebrities, and stay on top of social media trends, which Gen Z loves.
Shein’s constant sales and coupon codes also encourage people to keep returning for more, making them even more famous.
Should I Buy From Shein?
Shein is a great way to save money, but some people disagree with its quality and business practices. Most of the time, you get what you pay for when you shop at Shein.
- Some clothes are well-made, while others are made with cheap materials that fall apart after 3 washes.
- The amount of clothes they make aren’t sustainable or good for the earth, so shopping at Shein is also a personal choice.
- Shein’s ethics are also questionable because people say they get low pay and work in bad conditions.
- Before you buy something from Shein’s website, you should always read the reviews. The reviews will tell you how the product looks in person, whether it is of good quality, and whether it runs small or big.
- ‘If you want to shop more ethically and environmentally friendly, you can go thrifting at resale shops and vintage stores or use apps like Depop and Poshmark to buy and sell used items. Or, you could put your money into clothing names that are good for the environment, such as Reformation, Everlane, and Girlfriend Collective.
- If you want to return an order from Shein, your first return is free. After your first return, which is free, Shein will charge you $7.99 for shipping.
What Are The Drawbacks of Using Shein?
- Even though Shein is so well-known, it has been at the center of many arguments. Shein uses a lot of synthetic fabrics, which can take anywhere from 20 to 200 years to break down. The clothes are made to be worn a few times, then replaced and thrown away. This isn’t good for the earth and isn’t sustainable.
- Second, Shein takes advantage of its employees by making them work about 75 hours a week and only paying them what they make. They don’t know how much they’ll make each week, so it’s a risky job.
- Many stores have also said that Shein stole their designs, which has led to lawsuits and upset designers.
The real reason Shein’s goods are so cheap is that the way it does business contributes to textile waste and global warming, has a sketchy supply chain, and takes advantage of its workers to offer prices that are too low to be true.