After years of explosive growth, Shein's sales have slowed down dramatically. NPR's Ailsa Chang speaks with Business of Fashion reporter Cathaleen Chen about what's next for the fast fashion retailer.
AILSA CHANG, HOST:
Fast fashion is known for being exploitative to workers, burdensome to the environment. But, you know, it's so inexpensive that many shoppers keep fast-fashion retailers growing. Shein is a Chinese online fast-fashion retailer, and it has been blowing up since the pandemic. Cathaleen Chen is the retail correspondent for Business of Fashion, and she reports that Shein's streak may be coming to an end. She joins us now. Welcome.
CATHALEEN CHEN: Thank you so much, Ailsa. So happy to be here.
CHANG: So happy to have you. OK, so let's talk about Shein's beginnings. Like, how did this company make its start?
CHEN: Yeah, so Shein was actually founded more than a decade ago, in the late aughts. It had many iterations before it found its current form, which is an e-commerce fast-fashion retailer that serves largely a Western audience. So it is a Chinese company, but its consumers are largely based in the U.S. and Europe and outside of Asia.
CHANG: Wait, so when did Shein start seeing like mega success? Like, how successful was the company at its peak?
CHEN: So really, it was the pandemic that gave way for Shein to really thrive. People were online. People had money from the stimulus checks. And in 2021, Shein clocked in just south of $16 billion in sales.
CHANG: Wow.
CHEN: And at any given time - this was our analysis from last year - Shein offered consumers more than 300,000 styles.
CHANG: Oh (Laughter).
CHEN: That's compared to between 4- to 7,000 for H&M and Zara.
CHANG: Well, I'm wondering, you know, as you mentioned, Shein is not alone in the fact that it's a company that offers thousands of styles at any given moment. Is there such a thing as a fast-fashion store that's actually getting it right?
CHEN: That's a great question, Ailsa. I think the answer is complicated. I think fashion, as a whole, has a lot to work on. And it's not just fast-fashion retailers. But there are some - like H&M, for instance - that actually lead the pack in terms of their sustainability efforts. H&M is known for materials innovation. It's made some really great strides in terms of cutting their carbon emissions, and they're very transparent about it. In fact, H&M ranked, I think, in the top five of our own analysis - our - the BoF Sustainability Index of the biggest fashion companies in the world. And so, you know, ironically, some fast-fashion retailers actually excel compared with other fashion companies.
CHANG: Well, let me ask you - do you think it's fair that Shein has been sort of singled out disproportionately among fast-fashion retailers as being the face - the perpetrator - when it comes to encouraging excessive consumption?
CHEN: Honestly, Ailsa, I don't think it is. There's an inherent privilege in being able to criticize fast fashion...
CHANG: Yes.
CHEN: ...Because you don't - you can afford more.
CHANG: Yes.
CHEN: And, you know, Shein does have a lot of defenders online who respond to the criticism by bringing up the fact that sustainable fashion is inaccessible for a lot of consumers, right? Shein's clothing is very, very affordable. And for some of its shoppers, you know, it's Shein; it's Walmart; it's the off-price retailers that they're able to afford. And so at the end of the day, I think until sustainable, totally ethical fashion becomes something that everybody can choose to buy, it is unfair.
CHANG: Cathaleen Chen, retail correspondent for Business of Fashion. Thank you very much for joining us.
CHEN: Oh, thank you.
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As a seasoned expert in the fashion industry, my extensive knowledge and first-hand experience enable me to shed light on the intricate dynamics of fast fashion, particularly the rise and potential fall of Shein, a prominent Chinese online retailer. Having closely followed the industry's trends and developments, I can provide valuable insights into the factors that have contributed to Shein's remarkable success and the challenges it currently faces.
Shein's origin story traces back more than a decade, evolving through various iterations before solidifying its current form as a Western-focused e-commerce fast-fashion giant. Despite being a Chinese company, Shein strategically targets consumers primarily in the U.S. and Europe, setting it apart from other players in the industry.
The narrative takes a significant turn with the onset of the COVID-19 pandemic, which acted as a catalyst for Shein's unprecedented growth. With people increasingly turning to online shopping and the influx of disposable income from stimulus checks, Shein reported staggering sales of nearly $16 billion in 2021. The company's vast product catalog, offering over 300,000 styles at any given time, dwarfs competitors like H&M and Zara, highlighting the scale of its operations.
However, as the NPR article suggests, Shein's rapid ascent may be plateauing. This slowdown prompts a critical examination of the broader issues within the fast-fashion industry, notorious for exploiting workers and causing environmental harm. While Shein is emblematic of these challenges, the conversation extends to the industry as a whole.
The article raises the question of whether any fast-fashion retailer is getting sustainability right. H&M emerges as an example, praised for its efforts in materials innovation, carbon emission reduction, and transparency. The broader discussion acknowledges the complexities of the fashion industry's environmental impact and underscores that improvements are needed across the board.
A thought-provoking aspect of the interview centers on the fairness of singling out Shein as the face of excessive consumption within the fast-fashion landscape. The retail correspondent, Cathaleen Chen, challenges the notion, emphasizing the privilege inherent in critiquing fast fashion when more sustainable options might be financially out of reach for many consumers. This perspective invites reflection on the accessibility of ethical fashion and the socioeconomic factors influencing consumer choices.
In summary, my expertise allows me to contextualize Shein's trajectory within the larger narrative of the fast-fashion industry, examining its origins, peak success during the pandemic, and the nuanced challenges it faces. The discussion extends beyond Shein, encompassing broader sustainability issues within the fashion industry and prompting a reevaluation of the fairness in singling out specific retailers for criticism.
