*This article is from Glossy, a media that reports on the latest trends in the wellness industry from a global perspective.
Ultra-fast fashion brand SHEIN is one of the most controversial brands due to its carbon-intensive production style and overall lack of sustainability certification. It has now surpassed Zara and Nike to become the most Googled brand in the world.
China-based Shiin’s valuation reached $100 billion in April 2022. A whopping 40% of fast-fashion sales in the U.S. in March 2022 will come from see-in, according to a study by Bloomberg Second Measure. The 14-year-old company’s revenue is growing at 57% annually, according to data from Coresight Research. Meanwhile, Seein’s 20-year-old competitor, ASOS, is growing at about 20% a year.
There are several factors in See-in’s success, as outlined below. But the strategy that has made the company so successful is plagued by issues such as workers’ rights, overproduction and a lack of commitment to sustainability.
Seein uses AI to predict changes in consumer interest
See-In produces 700 to 1,000 new garments daily in small batches, allowing them to be tested for popularity before being mass-produced. Customers will always have popular products because AI will create trendy and popular replicas every day. Many of Shiin’s garments have been criticized for copying designer clothing, the work of young designers, and religious motifs.
Emphasis on speed and low price, product quality comes second
Most of See-in’s clothing is made from polyester, nylon and other synthetic fabrics with cheap virgin plastic materials. This makes the product less expensive to produce, but it’s not built to last. Many things become tattered when washed, so they go straight to the garbage disposal site.
The company will launch a buyer-to-buyer resale platform in October 2022. But experts fear the clothes are of such poor quality that they won’t survive resale. “I wonder how much Sein’s used clothes are worth,” said sustainability expert and writer Sophie Benson.
“Most of the company’s clothing is cheaper than used clothing and of lower quality, so it’s unlikely that it will hold up to multiple owners. The fact that See-in uses resale data to determine which products to remanufacture. So it’s clear that the company has no intention of slowing production momentum – it’s just market research under another name.”
Garments made of polyester can be sold at low prices. See-in items can usually be bought in bulk for less than $100, which is a Gen Z trend on TikTok. The number of views for the hashtag “#Sheinhaul”, which introduces products purchased at Seain, exceeds 7.5 billion.
A subcontractor that supports cheapness and speed
Subcontractors are responsible for the production of See-in, and it operates like the food delivery industry. First, it sends product requests to a huge network of small subcontract factories. Many of these factories are located in overcrowded residential areas within China and are not safe. And whoever can fulfill the order the fastest gets the subcontracting fee.
This arrangement has resulted in Guangzhou, Shiyin’s main production hub, and a vast production network spanning other provinces. And Seein does not monitor these production sites or working conditions.
The documentary Inside the Shein Machine, which aired on October 17, highlighted the long hours, low wages and harsh conditions at these factories. Then, in December, See-in spent $15 million to improve working conditions in its supply chain. Given the scale of the company’s production, there is no doubt that more improvements will be needed in the future.
See-in websites and apps use dark patterns
Dark patterns are user experience marketing tactics that mislead or trick users into taking specific actions on a website or app. In particular, young users, who are the core layer of See-in, have the characteristic of quickly scrolling through websites and apps and not paying attention to the content, and they are adopting tactics that take advantage of this.
The company’s app and website repeatedly remind users of multiple offers that can be applied at the same time. It also incorporates game-like elements, such as presenting individual offers to users who visit many times. By promoting such prices, Seein is playing with consumer psychology, selling excessive amounts of product, and actively contributing to the culture of howl videos. Noda.
Young designers on the platform are brand ambassadors
Many young designers are stuck in the fashion industry. Seain sells the products designed by them on its EC site, and offers opportunities to participate in various exclusive programs, TV programs, and fashion shows.
Becky Ball, a young British designer who works with the company, says:
“In our hearts, we all want to be sustainable and do something good for the planet. My future goal is to have a brand that incorporates sustainable elements. , the industry is already tough enough and we feel like we can’t pass up this opportunity.”
[original text]
(Text: ZOFIA ZWIEGLINSKA, Translation: Ryoko Tasaki / Editing: Yukako Yamagishi)
Source: BusinessInsider
Emma Warren is a well-known author and market analyst who writes for 24 news breaker. She is an expert in her field and her articles provide readers with insightful and informative analysis on the latest market trends and developments. With a keen understanding of the economy and a talent for explaining complex issues in an easy-to-understand manner, Emma’s writing is a must-read for anyone interested in staying up-to-date on the latest market news.