Welcome to the realm of “ultra-fast fashion,” a convergence of technology, marketing strategies, consumer influence, and production tactics aimed at boosting sales. Shein, a Chinese retail giant, stands at the forefront of this fast fashion trend, raking in billions as an e-commerce powerhouse. However, the allure of inexpensive clothing and a constant stream of new styles comes with hidden costs.
In the investigative documentary called “Inside the Shein Machine,” journalist Iman Amrani delves into the inner workings of Shein to shed light on how this enigmatic brand ascended to global domination. The film delves into Shein’s ability to introduce a staggering 2,000 to 10,000 fresh styles daily on its platform, utilizing cutting-edge technology to keep consumers engaged. Amrani dispatches an undercover agent to Shein’s factories to probe rumors of exploitative working conditions that take advantage of laborers.
“I aim to comprehend how, despite facing these criticisms, Shein has captivated shoppers like you and me,” Amrani expresses.
Shein may outwardly resemble a typical fashion retailer, but the documentary reveals that the brand, founded by SEO expert Chris Xu in 2015, operates more akin to a tech firm than a traditional fashion entity. The key to Shein’s success lies in its data-driven approach. Unlike its competitors, Shein doesn’t adhere to conventional fashion calendars to predict trends. Instead, it scours social media trends and leverages its vast reservoir of internal customer data, employing AI algorithms to forecast product demand.
By deviating from the conventional fashion cycle, Shein has revolutionized the industry. Rather than forecasting trends, the brand focuses on current customer preferences and purchasing behaviors. Marketing specialist Andy Woods describes Shein’s operations as operating on an entirely different level in the documentary.
Shein employs various “dark patterns” on its website to drive sales, including tactics like artificial scarcity, fake popularity indicators, and time-sensitive offers — commonly used strategies in e-commerce. A study by Fédération romande des consommateurs (FRC) and Swiss watchdog Public Eye in 2022 revealed that Shein topped the list of online retailers employing 18 out of 20 common e-commerce manipulation tactics.
Drawing lessons from the tech sector, Shein has emerged as the fifth largest private company globally, valued at $66 billion. In 2022 alone, Shein amassed $23 billion in revenue. The brand aims to further boost its revenue by 40% in 2023, as reported by the Wall Street Journal.
Utilizing Xu’s tech background, Shein has developed a robust online marketing strategy, leveraging social media, influencer partnerships, and affiliate programs to engage its audience. TikTok serves as Shein’s primary social media platform, with influencers showcasing Shein hauls to their followers, inadvertently promoting the brand.
To counteract allegations of labor exploitation at their partner factories, Shein recently organized a tour for influencers at a production facility in Guangzhou, China. Despite the attempt to deflect negative publicity, Shein continues its rapid expansion, establishing distribution centers outside China and venturing into the physical retail sphere through pop-up shops and partnerships with established brands.
As Shein charts its course for the future, expanding its market reach and exploring new avenues for growth, the fashion industry closely monitors its evolution, waiting to see if the brand will address concerns regarding its business practices.