Welcome to the realm of “ultra-fast fashion,” where a blend of technology, marketing strategies, customer influence, and production methods converge to drive increased consumer purchases. Leading the charge in this space is Shein, a Chinese retailer that has surged to the top of the ultra-fast fashion scene, raking in billions as an e-commerce giant. However, the allure of affordable garments and a never-ending array of styles comes with its own set of consequences.
In the investigative documentary titled “Inside the Shein Machine,” journalist Iman Amrani delves deep into Shein’s operations to shed light on how this enigmatic brand ascended to global dominance. The documentary explores Shein’s ability to introduce a staggering 2,000 to 10,000 new styles daily on its platform, as well as how its cutting-edge technology perpetuates consumer engagement. Amrani dispatches an undercover agent to Shein’s production facilities to probe the alleged harsh working conditions that exploit laborers.
Expressing her motivation, Amrani voices, “I aim to comprehend how, despite facing these criticisms, Shein has successfully captivated shoppers like us.”
Contrary to its outward appearance as a conventional fashion entity, Shein, founded by SEO expert Chris Xu in 2015, is portrayed in the documentary as more of a tech enterprise than a traditional retailer. The documentary underscores Shein’s distinctive use of data. Unlike its counterparts, Shein does not rely on conventional fashion calendars to identify trends. While brands such as Zara swiftly translate runway trends into retail offerings, Shein leverages social media trends and a vast reservoir of internal customer data, harnessing AI to forecast products for production.
By bypassing the traditional fashion system, Shein operates on a distinct paradigm. Instead of conforming to projected trends, the brand aligns its production with real-time consumer demands. Marketing specialist Andy Woods highlights in the film, “This mechanism functions on an entirely different echelon.”
Shein employs a myriad of tactics on its website to stimulate consumer purchases. Woods identifies several “dark patterns” in the documentary – strategies employed by websites to prompt users into unintended actions, extensively utilized in e-commerce. Notable examples include artificial scarcity, fabricated popularity, and contrived urgency.
In a 2022 study conducted by the Fédération romande des consommateurs (FRC) and Swiss watchdog Public Eye, analyzing 15 prominent online retailers including Shein, it was revealed that Shein topped the list by employing 18 out of 20 common e-commerce dark patterns. The brand’s strategies encompass incentivizing account sign-ups, inducing additional purchases for discounts, impeding cancellation processes, and deploying unconsented tracking cookies.
Leveraging insights from the tech domain, Shein has ascended to become the world’s fifth largest private company, boasting a valuation of $66 billion US. With a revenue of $23 billion US in 2022 alone, Shein aims to escalate its revenue by 40% in 2023, as per reports from the Wall Street Journal.
With Xu’s tech acumen, Shein has cultivated a robust online marketing ecosystem, employing social media, influencer partnerships, and affiliate programs to engage its audience. TikTok serves as the platform of choice for Shein’s marketing endeavors, where enthusiasts showcase their Shein hauls, fostering user-generated advertising.
Operating on an “on-demand” production model, as elucidated by Peter Pernot-Day, Shein identifies potential products, collaborates with smaller manufacturers to produce limited batches, and gauges their performance before scaling production. However, the documentary exposes the grim working conditions at some of these smaller production units.
In response to allegations of worker exploitation, Shein orchestrated a tour for influencers at a production facility in Guangzhou, China, which backfired, drawing criticisms for allegedly glossing over labor conditions.
Despite the controversies, Shein remains undeterred in its expansion endeavors. Establishing distribution centers beyond China, initiating Amazon-style marketplace ventures, foraying into physical retail with pop-up shops and partnerships, including a collaboration with Forever 21, underscores the brand’s exponential growth trajectory. As Shein’s footprint expands, industry observers keenly monitor its efforts to enhance its operational standards.
