Shein says it’s able to make affordable apparel by monitoring user behavior to predict customer demand and producing items in small quantities. The Chinese e-commerce company known for its $5 T-shirts and $20 cocktail dresses controls 40% of the fast-fashion market share in the U.S., with an estimated $8 billion in sales in the country last year. Shein’s inventory turnover rate is twice as fast as other competitor retailers such as H&M and Zara.
WSJ explains how Shein has dominated the global fast-fashion market as it remains one of the least transparent fast fashion companies in the world.
Chapters:
0:00 Shein’s fast-fashion domination
1:02 Small batches and Shein’s online tech
2:24 Vast manufacturing network
4:26 Allegations of poor labor conditions
6:08 De minimis tax loophole
6:46 How Shein is managing its image
The Economics Of
How do the world's most successful companies generate revenue? In this explainer series, we'll dive into the surprising stories behind how businesses work--exploring everything from Costco's "treasure-hunt" model to the economics behind Amazon's AWS.
