Explore the controversies surrounding Shein's fast fashion business model, labor practices, and concerns about sustainability and human rights issues in the supply chain. Discover the behavior of Shein, including accusations of design theft and potential congressional action. Hear about a crochet designer's experience of having her design stolen and the lawsuit against Shein for design theft.
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Quick takeaways
Shein uses reactive technology-based algorithms to quickly pick up on social media trends and produce garments accordingly, but faces criticism for labor practices and lack of sustainability.
Shein's business model relies on design theft and mass production of similar designs, leveraging technology to stay ahead of competitors, but lacks transparency and faces demands for investigations.
Deep dives
The Phenomenon of Xi'in: Beloved and Hated
Xi'in is rapidly growing and valued at $66 billion, larger than H&M and Zara combined. It achieves this by leveraging reactive technology-based algorithms to quickly pick up on social media trends and produce garments accordingly. Xi'in uploads around 10,000 products a day. One example of their trend-spotting is the popularity of parachute pants among Gen Z, which they quickly embraced and mass-produced. However, Xi'in faces criticism for its labor practices, with accusations of forced labor and sourcing from regions associated with human rights abuses. Sustainability is another concern, as the company's fast and cheap fashion approach undermines environmental considerations.
Design Theft and Controversy
Xi'in has been accused of stealing designs from smaller designers, leading some to file lawsuits. While design theft is not uncommon in the fashion industry, the allegation against Xi'in suggests that design theft is an integral part of its business model. The company's use of technology to gather data on customer trends and then mass-produce similar designs allows it to stay ahead of competition. Xi'in's lack of transparency and questionable labor practices have drawn scrutiny and demands for investigations into their practices.
The Impact of TikTok and Influencers
Xi'in's rise in popularity in the US has been closely correlated with the growth of TikTok. Influencers on the platform often promote Xi'in through hauls and showcasing their purchases. This exposure has contributed significantly to the brand's visibility and sales. However, the influencer trip organized by Xi'in to its manufacturing plants has been criticized for presenting an idealized view of the company's labor practices and workplace conditions. Meanwhile, Congress has taken an interest in Xi'in, raising concerns about data privacy and potential regulatory actions.
The Chinese apparel company Shein, a favorite of Gen Z shoppers and the latest frontier in US-China tensions, has indicated it plans to go public in 2024. In an episode we first released earlier this year, Vogue Business editor Hilary Milnes explains all the drama surrounding the ecommerce giant.
This episode was produced by Haleema Shah, edited by Matt Collette and Amina Al-Sadi, fact-checked by Laura Bullard, engineered by David Herman and Patrick Boyd, and hosted by Noel King.