Although the clothing industry suffered during the pandemic, the period represented a change in consumer habits, who started to buy clothes online, even if they were not going to wear them anytime soon due to social isolation. And it was precisely in mid-2020 that Shein, a retailer of clothing and accessories, began to sell its products to the Spanish market. Now, the brand has announced that it will open another pop-up store in Brazil.
Founded in 2008 in China under the name ZZKKO by entrepreneur and digital marketer Chris Xu, the brand specialized in wedding dresses. Then it started selling women's clothing in general and later adopted the name "Sheinside". It was from 2010 onwards that the company expanded its sales outside the Chinese market, starting to operate in countries such as Germany, Russia, Italy, Spain and France. Gradually it expanded and today sells to more than 150 countries.
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The brand started producing its own items and, in 2015, adopted the name “Shein”. A survey by Piper Sandler showed that Shein is only behind Amazon in the ranking of most consumed brands among young people of generation Z.
Currently, the brand is a reference in fast-fashion, it stands out for the price of items that are usually more accessible – even if they are exported from China – than other similar stores. In addition, the creation of pieces based on trends in social networks and even Google Trends helps the brand to define new products and strategies that will be based on consumer demand.
Upon entering the retailer's website, the consumer will come across an impressive variety of products and accessories aimed at different styles and personalities of consumers. Most of the clothes are marketed in sizes that suit users ranging from slim to plus size.
Unlike many clothing and fashion accessories retailers, Shein does not have a stock of products, after all they are produced according to the quantity requested by consumers. Even without stock, the brand updates its product catalog with around 6 new items daily, all advertised in very well-produced photos.
Accusation of labor exploitation
Despite the positive points, the company also has some negative events in its trajectory. In 2021, a Reuters report showed that the brand did not publicly disclose the working conditions to which employees are subjected, and this statement is required by the United Kingdom.
Also according to the August 2021 report, Shein's website states that the company complies with social responsibility requirements and has never engaged in exploitation of child or forced labor.
The company does not usually disclose its financial information, but, according to Bloomberg, analysts estimate that Shein's market value was valued at US$ 100 billion in April 2022. Reports in recent years show that part of this profit is obtained through of labor exploitation.
The records of the documentary “Inside Shein Machine: UNTOLD”, produced by Channel 4, show some precarious working conditions. In production, a reporter shows that workers arrive at a work routine of 18 hours a day with only one day off per month. And they receive a salary of 4.000 yuan a month, about US$552 (R$2.850) at current exchange rates, with the first salary being retained by the factory.
As reported in The Cut's article, in addition to labor issues, the company has also suffered criticism for high levels of toxic products in its clothing, plagiarism in the design of independent pieces and poor handling of customer data.
Shein in Brazil
According to a survey by BTG Pactual, Shein managed to sell US$ 2 billion last year. Another point that attests to the success of the brand in Brazil is the number of downloads. In 2021, Shein's app was the most downloaded in the fashion industry with 23,8 million downloads.
As previously mentioned, Shein will open a temporary store in São Paulo, between November 12th and 16th, at Shopping Vila Olímpia. However, this will not be the first time that the brand will have a store in Brazil, in March of this year, Shein installed a temporary store in the Village Mall, in Rio de Janeiro.
Similar to the pop-up stores in Rio and São Paulo, the company also announced that Belo Horizonte will feature a temporary facility later this year. Date, opening hours and location have not yet been announced.
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