Shein: The fall and rise of a fashion big

Like millions of others, she’s a big fan of the ultra- strong style large, mostly because of how cheap it is.

She enjoys how YouTube influencers who she watches present Shein discount code, which encourages her to “buy more.”

Shein has evolved over the past ten years from a little-known company to one of the biggest rapid fashion retailers on the planet.

The Chinese-founded business, which also sells a sizable range of home and beauty products, doubled its profits last year to more than $2 billion ( £1.6 billion ), surpassing the Swedish fashion house H&M and the UK’s Primark and Next.

Now, it boats to customers in 150 locations across the world.

However, the business continues to face disagreement over its working conditions and environmental impact, including complaints of forced labor in its supply chain, as it looks into a program to list its shares on the London Stock Exchange.

Michaela is aware of the controversy, and she is mainly concerned about how much vinyl Shein uses in its container.

She believes that not everyone can afford high-end clothing, and that most fashion models are also subject to similar criticism.

“But at the back of my head I feel pretty bad when I purchase items, but at the same moment it’s convenient”, she tells the BBC.

Shein, pronounced “she- in”, was set up in China in 2008 by businessman Xu Yangtian and started out selling bridal dresses electronically.

Since then it has grown into a global powerhouse, finest known for selling on- pattern attire, mainly to a Gen Z customer base.

A large part of the appeal? The rate.

The average price of a Shein- branded apparel product is only £7.90 and at any one time, it has as many as 600, 000 items for sale on its website platform, dwarfing rivals like Zara or Boohoo.

It’s even snapped up rivals like Missguided, while Xu Yangtian, who seldom gives discussions, is then said to be one of China’s richest people.

The real turning point for the product came during the epidemic, when net shopping took off and Shein’s selling soared, says Louise Déglise- Favre from economists GlobalData.

The company has also made wise use of social media, hiring well-known influencers and college students to showcase its garments on TikTok and Instagram.

“The brand’s success coincided with a boom in TikTok usage in Europe and the US”, says Ms Déglise- Favre. “The Shein’s ultra-cheap proposition was greatly promoted by the Chinese social media platform.”

It draws in a lot of organic user-generated content because Rita Ora and Katy Perry perform at its virtual concerts.

You might have watched a few “haul” videos of young women giving their honest opinions of crop tops, dresses, or beauty blenders from the website.

Shein’s business model is similar to Amazon’s, in that it partners with thousands of third- party suppliers- many of them in China, Brazil and Turkey- to manufacture its clothes and then ships them from giant, centralised warehouses.

The “test and repeat” model, which other fast fashion giants like H&M and Zara owner Inditex, has also been sped up.

This sees Shein suppliers produce items in small numbers, of between 100- 200 pieces, and then produce more of any style that is a hit.

In contrast, other retailers would take months to complete a new item in just 25 days.

It also employs “gamification” tactics to increase user engagement with its global shopping app, which is used by millions of people.

Users earn points and discounts for daily logging in, social media sharing, and referring friends.

“That encourages users to repeat such behaviours to earn more rewards and, as a result, they keep coming back, engaging with the app, and making purchases”, says Vilma Todri, an associate professor at Emory University’s Goizueta Business School in the US.

However, it has been difficult to shake the criticism Shein has received regarding its operating practices.

And now that the Chinese company is considering listing its shares in London in a public offering that it might be worth at a reported$ 50bn, those concerns are back in the spotlight.

There are concerns about the waste it produces and the environmental effects of mass producing low-cost clothing.

Shein should also be investigated over claims that some of the clothes it sells are made by Uyghurs forced labor, according to a group of US lawmakers last year.

“We have zero tolerance for forced labour”, Shein told the BBC at the time.

The company has promised to look into these issues and says it strictly adheres to a code of conduct that all of its suppliers must adhere to.

Additionally, it has established a resale platform for customers in the US and France to help it improve its environmental credentials, and it claims that making clothes smaller amounts means very little material goes rott.

But some say it is not enough.

Jess Gavin, a student at Shein, undoubtedly used to shop there, getting the bug during the pandemic when online fashion shopping was a fun way to pass the time.

She liked the low prices and good quality of the website for swimwear. But she started to worry about her ethical concerns, so she decided not to shop there and instead chose to use second-hand websites Vinted and Depop.

“I think you care a little less about these things when you’re younger, for sure. But I guess we’re now more aware of the issues and feel more responsible”, she tells the BBC.

Shein initially planned to list its shares in the US, but due to political tensions, these plans were postponed.

It’s now facing qualms in the UK, with some saying worries over environmental, social and governance standards could put off investors.

However, some claim that a large listing in London would be very helpful. It may encourage more people to learn about the company’s operations and boost the UK economy, especially since the London Stock Exchange has been having trouble attracting fast-growing businesses.

Michaela hesitantly approves of the notion that the fast-paced fashion industry would have to make money in Britain.

As long as they demonstrate that they are making an effort to improve their environmental and work practices, “I think it’s good.”