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Shein’s Controversial Business Model Keeps Prices Low

Ultra-fast fashion giant faces criticism over labor and environment.

  • Labor Relations
  • Retail, Marketing and Advertising
  • Ethics
  • Business Law & Economics
  • Manufacturing & Packaging
  • Pricing
  • Product Development
  • Product Distribution
  • Supply & Demand
  • Chapter 1 Taking Risks & Making Profits
  • Chapter 2 Economics
  • Chapter 3 Globalization
  • Chapter 4 Ethics & Social Responsibility
  • Chapter 9 Production & Operations Management
  • Chapter 10 Motivation
  • Chapter 11 Human Resource Management
  • Chapter 12 Labor Management & Unions
  • Chapter 13 Marketing
  • Chapter 14 Product & Price
  • Chapter 15 Distribution
  • Chapter 16 Place & Promotion
  • Bonus Chapter B
  • Video
  • Blog
  • Understanding Business
  • Higher Education

The Chinese e-commerce giant Shein (pronounced Shee-In) controls more than 40 percent of the U.S. fast fashion market, with more than $8 billion in sales last year. This video explores how the retailer consistently churns out cheap shirts and dresses, which includes accusations of labor exploitation that has tarnished Shein’s image with some shoppers.

Questions:

  1. How does Shein’s “small batch” production strategy differ from other clothing companies? 
  2. How has Shein tried to recover its reputation with U.S. consumers? Do you think the company will ultimately be successful in its efforts? Why or why not?
Author: NickelsMcHughMcHugh