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If you haven’t encountered Shein before, it’s probably because you’ve never been told.
The Chinese fashion site has grown exponentially in recent years with a hyper-targeted social media strategy that has attracted the attention – and portfolios – of Generation Z buyers and millennial buyers.
For younger consumers who want to be modern and often have less income, Shane feels almost irresistible.
“I don’t think there are many players in the world who are targeting younger consumers like Shane,” said Charles de Brabant, executive director of the Bensadoun School of Retail Management at McGill University in Montreal.
Toronto resident Jai Elanko says she buys from Shein when looking for basic or disposable clothing at an affordable price for an occasion.
“I said to myself, ‘OK, I’ll wear it once or twice or a few times, but I don’t really care much about the quality itself,'” Elanco said.
And although the material is not on par with other brands, the 27-year-old says the price compensates.
Shein is now said to be valued at a whopping $ 100 billion, ahead of big players in the industry such as Zara and H&M as it proves to be a leader in e-commerce. However, the company is facing criticism for concerns about sustainability, among other practices, the staggering pace of production.
While Zara has about 600 products marked as “new” on its website, Shein pumps over 6,000 new products a day at significantly lower prices than its competitors.
An investigation into the CBC Marketplace last fall also found that Shein was one of several online retailers selling products with elevated levels of toxic chemicals, which were then removed from its site.
Despite much attention over the years to the unsustainable practices of the fashion industry – and the youth demographic that claims to care for the environment – the rise of the site is proof that fast fashion is becoming even faster.
According to the United Nations Environment Program, the equivalent of a textile garbage truck is estimated to be deposited or burned every second. (Martin Burnetti / AFP / Getty Images)
Born online player
Shein was founded in 2012 by current CEO Chris Sue as a business-to-consumer retailer that acquires products from manufacturers in the country and sells them worldwide.
According to their website in the United States, their “flexible supply chain with digital capabilities” allows them to organize small batches of orders from manufacturers that can be delivered quickly to consumers to see what’s up to date.
Shein’s ability to run small production batches and test them with customers is beyond the capabilities of other retailers, said McKinsey’s senior partner in Montreal, Sandrine Devilard.
“Because you have all the advanced analysis, you are able to read the client and identify that it will be a smashing hit or a failure and then you are able to complete in less than three weeks,” said Devilard. .
“You’re on an incredibly winning formula and that’s what they are doing.”
Unlike other retailers who had to adapt to the rise of e-commerce, de Brabant said Shane’s operations were designed with a digital approach.
“The huge benefits you can sell almost anywhere, or what Shane has done incredibly effectively,” de Brabant said.
And while the lack of physical stores comes with drawbacks, Shein eliminates some of the fluctuations associated with online shopping by offering customers free returns and free shipping on orders over $ 49 Cdn.
But what stands out for experts watching Shein’s rise are the site’s algorithms, which serve virtual window buyers exactly what they want to see. According to McKinsey, Shein uses “behavioral economics and gaming principles” that make customers spend an average of 8.5 minutes on the website, longer than any other fashion site in the United States.
WATCH Brazilian musician Anitta collaborates with Shein for a collection:
Shein also excelled in its ability to direct customers to its site. The retailer cultivates a strong presence on social media through influential people who promote their products mainly on Instagram and TikTok, reaching the next generation of users.
“We believe this is the main driver of their growth,” Devilard said. “They are able to use their influence to reduce investment.”
Shein has partnered with all levels of influential people, from celebrities such as Brazilian singer Anitta to micro-influencers with thousands of followers. Some have even copied the same outfits, using products from Shein and traditional competitors to contrast the price and products.
“It simply came to our notice then [Shein’s] trust in fashion, “Devilard said.
Affordable, modern and sustainable
Shein’s success with young consumers is at odds with their strong values of the environment and sustainability.
According to the UN Alliance for Sustainable Fashion, the garment and textile industries are responsible for two to eight percent of global greenhouse gas emissions. This is in addition to the significant use of water by the production industry and the environmental impact of landfill products.
According to an Ipsos poll last fall, young Canadians listed threats to the environment and climate change as the top five problems. A sample of 501 Canadians aged 18 to 29 was surveyed from 3 to 6 September 2021. For comparison purposes only, a probability sample of the same size will give a margin of error of +/- 5 percentage points, 19 times 20.
Shelley Haynes, a professor at the Toronto Metropolitan Fashion School, published a study last year on the mismatch between consumers’ attitudes toward sustainability and their actions.
“I found this [the participants’] the wardrobe does not express the same level of sustainable interest that they express in terms of their interest and values, “Haynes said.
Some of the barriers to sustainable behavior the researcher found related to price, style and lack of knowledge on how to care for and repair clothes.
“I had a participant who told me that they bought the same skirt twice in a very short period of time, simply because the zipper on the first skirt they broke,” Haynes said.
Elanko says the price is really what makes young people turn to fast fashion, even though they know its impact on the environment. Those with less money should not be forced to choose between style and sustainability, she added.
“I really think it’s because they really can’t afford anything else,” Elanco said.
Today, consumers have more opportunities to shop consciously with independent sustainable brands offering alternatives to fast fashion. However, their prices are often much higher than large retailers for a number of reasons, including the cost of materials and the scale of production.
Haynes says sustainable fashion is more affordable for those with privileges. For shoppers who want to balance their finances with their values, Haines recommends setting aside part of your fashion budget to buy fewer but more sustainable items, wear fast fashion items for longer, or browse second-hand stores. .
WATCH Trying to get rid of fossil fuels behind fast fashion:
Violation of the impact of fast fashion on the environment
The clothing and textile industries are responsible for approximately 2-8% of all greenhouse gas emissions, but these Canadians are trying to distort the impact of fast fashion on the environment. 6:13
The future of fashion sustainability
Big brands have been investing more in sustainable products and practices in recent years. Zara has set out on its website a list of environmental goals, including a 25 percent reduction in the impact on water in the supply chain by 2025. And H&M recently announced that the baby line is completely compostable.
Shein has also dedicated a page to its website listing some of the ways in which its operations include sustainability, including the use of solar-powered vehicles to transport products and test small batches before mass-producing an item.
Shein’s success is likely to attract the attention of competitors and raise concerns about the future of the industry. Devillard predicts that Shein will continue to grow and that its success will encourage other retailers to “increase their game.”
But de Brabant is cool about whether their growth can be sustainable, especially given the thin line.
“I’m always a little wary of such exponential growth rates,” he said.
For traditional players in the industry, de Brabant does not recommend trying to compete on price with Shein and instead says they should focus on their business models that bring stable but good growth.
Shein’s success may give the impression that he has found a way to avoid any consequences for his role in accelerating fast fashion. However, both de Brabant and Devilard believe that the company will eventually face consumers in terms of environmental, social and governance issues.
“IN [some] point, the behavior will follow the way of thinking, “Devilard said.
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