{"id":13726,"date":"2024-02-29T06:30:02","date_gmt":"2024-02-29T06:30:02","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=13726"},"modified":"2025-05-08T09:49:02","modified_gmt":"2025-05-08T09:49:02","slug":"what-is-shein-the-chinese-fast-fashion-retailer-explained","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/what-is-shein-the-chinese-fast-fashion-retailer-explained\/","title":{"rendered":"What is Shein? The Chinese fast fashion retailer explained"},"content":{"rendered":"

In the latest in Focus\u2019 series on \u201cCan Chinese brands go global in 2024?<\/a>\u201d, we take a look at online retailer Shein, which has found itself at the centre of a debate about fast fashion and expanding Chinese influence abroad<\/h3>\n

Since exploding in popularity in the late 2010s\/early 2020s, fast fashion retailer Shein has captured the attention of millions of shoppers worldwide with its rapid trend cycle and rock-bottom prices. However, its exponential growth has raised concerns within the business community and among consumers.<\/p>\n

In this article, we delve into the background of Shein, its remarkable growth, concerns surrounding its business model, and the implications of its expansion for British companies in China and beyond.<\/p>\n

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What is Shein?<\/h4>\n

Shein (pronounced \u2018shee-n\u2019 or \u2018shee-in\u2019) is an online fast fashion retailer with an app and website. It predominantly sells clothing, as well as homewares, beauty products, and an increasing range of miscellaneous items. Sales are driven by heavy discounts \u2013 which pop up as soon as a user accesses the website or app \u2013 and extensive influencer marketing, as well as the sheer number of products available to browse.<\/p>\n

Like Temu<\/a>, 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 \u2018on-demand\u2019 model, which leverages user data to quickly boost or shut down production of items based on how well they\u2019re selling or what people are searching for. By placing small orders from suppliers who both design and manufacturer items, it can get items on its virtual shelves in as little as a week, allowing it to capitalise on so-called micro-trends and encourage people to keep buying.<\/p>\n

Shein then ships products directly from China in individual shipments that have a low enough value that they avoid customs duty in countries like the US and UK. It ships to over 150 countries.<\/p>\n

Shein became the largest fashion retailer in the world in 2022 after securing a US$100 billion valuation in a funding round, and it achieved more than \u00a31.3 billion in sales in the UK alone in 2023 according to GlobalData. Although much of this growth has been attributed to Gen Z TikTok users, the average Shein user actually skews a bit older, at about 35 years old, and their average monthly spend is about US$100. This suggests that many consumers aren\u2019t using Shein as an option to buy affordable essentials but rather are using its bargain prices to pad out their wardrobes with impulse buys.<\/p>\n