[Market Trend] How Does Shein Maintain Such Low Prices? | The Wall Street Journal
📌 Has the boss gone mad?
Has the boss gone mad? In the online fast fashion industry, Shein has thrived in recent years, reaching a valuation of $66 billion in 2023 and capturing 40% of the U.S. market. Since its U.S. entry in 2015, Shein experienced rapid growth during the pandemic, with approximately $23 billion in sales in 2022. Behind Shein's low pricing are tax exemption benefits and instances of involuntary labor in its supply chain. Shein produces only 100-200 units per new item initially, altering designs based on user interest and reducing costs and inventory waste with a small-batch model. However, environmental activists point out that Shein's extremely low-cost garments could lead to post-consumption inventory waste. Shein utilizes China's cheap labor force and U.S. tax exemption benefits to lower prices. The company is making efforts to improve supply chain transparency and labor conditions. Recently, it has been attempting to enhance its image through investments in Brazilian manufacturers and a partnership with Forever 21.
