Shein, a leading fast fashion brand, has swiftly captured global attention. Accelerated by the COVID-19 pandemic’s impact on online shopping, Shein’s dynamic business strategy has propelled them to remarkable competitiveness in today’s marketplace (Fong et al., 2022).
Chris Xu founded Shein in Nanjing, China in 2008 (Ria, 2023). Originally, Xu created the company because he saw a demand for Chinese goods abroad (Ria, 2023). After market research, Xu realized that overseas consumers highly desired wedding dresses, especially for their low prices (Ria, 2023). The goal of Xu was to make products in China and then sell them to a primarily American market that was looking for lower prices (Ria, 2023). However, the biggest issue Xu faced was logistics.
He faced two major problems. One, most overseas consumers did not ‘trust’ Chinese brands (Ria, 2023). Two, currency discrepancies were difficult for overseas consumers to understand (Ria, 2023). Xu focused on creating an online platform to make these concerns less of an issue, then began selling wedding dresses worldwide (Ria, 2023).
Eventually, Xu recognized an opportunity in the greater women’s fashion industry (Fong et al., 2022). He saw issues in the lead times between recognizing a fashion trend and finally selling it to consumers (Fong et al., 2022). He thought if Shein could speed up these lead times and cut costs, then Shein could finally become a dominant force in the industry (Fong et al., 2022).
So, Xu began adding more and more women’s clothing, slowly growing Shein in the shadows of other big brands (Fong et al., 2022).
However, Shein’s true surge in growth was witnessed during the COVID-19 pandemic (Fong et al., 2022). This growth can be attributed to Xu’s significant investment in cultivating a resilient online platform, a strategic move that yielded substantial returns amid periods of social distancing and isolation (Fong et al., 2022).
But, with all this positive growth and sales, Shein has faced some serious backlash over their lifespan. Shein has faced controversy regarding copyright infringement, environmental concerns, labor misuse, and lack of cultural awareness (Fong et al., 2022).
Some of the worst cultural offenses are from new products released (Fong et al., 2022). One of Shein’s biggest assets is how many stock-keeping units (SKUs) they have (Fong et al., 2022). Typically, they make more in two months than Zara makes in a year (Fong et al., 2022). However, this asset can be detrimental because they rarely put their stuff through a checking process before releasing the items (Fong et al., 2022).
For instance, in 2020, Shein accidentally sold Islamic prayer rugs as Greek carpets (Fong et al., 2022). This resulted in heavy backlash from the Islamic community, who felt the brand lacked respect for their customs (Fong et al., 2022). Shein eventually apologized and pulled the product but failed to learn from the mistake.
About one year later, in 2021, Shein released a phone case with a black man in handcuffs surrounded by a chalk outline (Fong et al., 2022). During a time when black lives mattered and was at the forefront of American culture, a phone case depicting the movement’s opposite motives was not well received. While the company meant the artwork to be in solidarity with the movement, it was not taken as such, and they were forced to withdraw the product (Fong et al., 2022).
However, the most egregious incident occurred in July 2021 when Shein introduced the ‘Metal Swastika Pendant,’ featuring a gold chain with a swastika pendant (Fong et al., 2022). This item faced swift and severe backlash from the predominantly Western consumer base, viewing it as deeply anti-Semitic and offensive (Fong et al., 2022). Despite Shein’s prompt removal of the product and attempts to explain, the damage had already been inflicted (Fong et al., 2022).
Many Westerners are unaware that the swastika holds significance as a common symbol in numerous Eastern faiths, such as Buddhism, Hinduism, and Jainism (Bharath, 2022). In Buddhism, it represents the Buddha’s steps along the Path, while in Hinduism, it symbolizes peace (Bharath, 2022). The swastika is also prevalent in various Native faiths (Bharath, 2022). However, for a company primarily targeting an American audience, the symbol carries an overwhelmingly negative connotation, leading many to perceive the company’s usage as a strongly anti-Semitic statement (Fong et al., 2022).
While the company continues to navigate these challenges, its success underscores the importance of implementing rigorous quality control measures to uphold consumer trust and mitigate potential backlash. As Shein solidifies its position in fashion, it must prioritize cultural awareness and ethical practices to sustain its growth trajectory and maintain consumer confidence in an increasingly competitive market landscape.
Works Cited:
Bharath, D. (2022, November 27). Asian Faths Try to Save Swastika Symbol Corrupted By Hitler. Associated Press. https://apnews.com/article/religion-germany-race-and-ethnicity-europe-2c28b5892381cd4148dfde5bc4fbb004
Fong, Y., Wan, Z., & Huang, M. (2022, August 12). Shein: An Ultra-Fast Fashion Retailer’s Digital Strategy. The Asia Case Research Center at the Hong Kong University Business School.
Ria, A. (2023, November 6). A Brief History of Shein. Future Startup. https://futurestartup.com/2023/11/06/a-brief-history-of-shein/#:~:text=Founded%20in%20China%20in%202008,the%20world%20of%20online%20fashion.