The most quickly expanding e-commerce platform is SHEIN, a major online retailer. Are you curious about why is Shein so cheap?
Their prices are low because they practice fast fashion, use cheap labor, and have a lot of sales and discounts.
To do just that, I’m going to delve deeply into SHEIN’s inner workings today. Read on if you want to learn if Shein is a good investment.
What is Shein?
Founded in 2008, Shein (pronounced SHE-in) is a fast fashion company based in China that sells men’s and women’s clothing exclusively online. It makes use of social media and influencers to market its massive selection of incredibly affordable clothing.
Originally known as ZZKKO, the business began as a website that sold only wedding dresses that were bought in bulk from Guangzhou, China.
In 2011, the website’s creator Chris Xu changed its name to Sheinside and added women’s clothing to its selection, though it was still less of a fashion company and more of an e-commerce platform, leaving the design and manufacturing to other companies.
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Why is Shein So Cheap?
So why is Shein so cheap? This is due to a few factors. Together, let’s look at this!
Fast Fashion
One of the reasons why Shein’s clothes are so cheap is because they practice what is called “fast fashion.” Clothing that is intended to be purchased quickly and for a low price is referred to as fast fashion. Many fast fashion companies steal the designs of luxury companies and sell them for much less.
Fast fashion retailer Shein is the ideal illustration. Although they sell their clothes for much less than luxury brands, many of their designs are inspired by them. On Shein, for instance, you can get a lot of dresses that are inspired by designers for under $20.
The lack of top-notch clothing in fast fashion is a drawback. Fast fashion companies frequently skimp on manufacturing because their products are meant to be purchased quickly and for a low cost. This may result in clothing that is made of flimsy materials or that easily falls apart.
That said, it’s not always the case. Particularly considering their low prices, Shein’s clothing is typically of high quality.
Additionally, you have 35 days from the date of purchase to return the items for a refund if you are unhappy with the quality of their clothing.
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Cheap Labor
Another reason why Shein’s clothes are so cheap is that they use cheap labor to manufacture their clothes. Many of their clothes are produced in China, where labor costs are much lower than in industrialized nations like the United States.
Shein can therefore offer its clothing for much less than competing brands. For instance, a dress that sells for $50 on Shein would likely cost over $100 if it were made in the US.
Of course, using inexpensive labor has some drawbacks. One of them is the frequently subpar working conditions in these factories. The workers typically receive low wages as well.
However, it’s critical to keep in mind that lots of brands produce their clothing using low-cost labor. This is not just something that Shein does. In fact, in order to keep their prices low, the majority of fast fashion brands employ low-cost labor.
Outsourcing Products at a Low-Cost
SHEIN outsources their products from different regions around the world, which includes American and Chinese governments.
They contract with outside manufacturers and make direct purchases from them. This indicates that they use wholesale pricing, which lowers their overall costs.
Lower expenses also helps them price their products at much lower prices than their competitors.
Sales and Discounts
They frequently have sales, as we previously mentioned, where you can receive discounts of up to 50% off. To get even bigger discounts, they also provide a ton of coupons and promo codes.
For instance, they frequently offer discounts to first-time buyers. Additionally, they offer discounts to those who subscribe to their emails. So if you’re looking to save even more money on Shein’s clothes, make sure to sign up for their email list!
Convenient Warehouse Locations
Shein’s first warehouses were all in China when they were just getting started. However, as they grew internationally, they now have warehouses around the world to keep up with the demand and improve shipping times.
For American customers, for instance, they have a warehouse in Los Angeles. Additionally, they have warehouses in the Middle East, Australia, France, Switzerland, Russia, Italy, Spain, and Germany.
This allows them to ship products and packages from their main headquarters in China to local warehouses near you, which increases efficiency.
Free Shipping
The company also provides free shipping on purchases over a certain threshold. As a result, their prices are kept low. Therefore, be sure to benefit from their free shipping policy if you’re looking to save money on your purchase.
Lower Overheads
Unlike other brands, Shein does not have brick-and-mortar stores. They are thus exempt from paying rent or property taxes.
They are also exempt from paying for maintenance and utilities. Because of this, the business is able to maintain low prices and give the savings to its clients.
Influencer Marketing
Lastly, Shein’s clothes are so cheap because they use influencer marketing. Influencer marketing is a type of advertising in which companies use social media influencers to market their goods.
Influencer marketing has the benefit of being relatively inexpensive. This is due to the fact that brands are only required to pay influencers for each post or video they produce. Influencer marketing is also very successful. This is so because consumers tend to place more faith in influencers’ opinions than they do in conventional advertising.
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Is Shein Reliable?
Shein has been in business since 2012 and has established sufficient trustworthiness and excellence.
Shein is currently the most popular and well-known shopping website. They have built strong trust among customers all over the world as a result of their credibility.
In the end, we believe Shein to be a reliable online retailer who offers excellent value.
It would nevertheless be beneficial to be aware that the sizes and quality of your orders could vary. Thus, it is essential to read reviews and contrast sizing charts before making a purchase.
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Bottom Line: Why is Shein So Cheap?
As you can see, there are a few reasons why are Shein clothes so cheap.
Shein’s low overhead, high sell-through rate, and inventive use of influencer marketing allow the Chinese company to maintain extremely low prices.
Shein has reached the top of the fast fashion pyramid thanks to this business model, which puts an emphasis on quantity and speed rather than quality and oversight.
Have you ever shopped at Shein? What do you think of their attire? Comment below and let us know!
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FAQs about Why is Shein So Cheap
Why is Shein So Popular?
There’s no doubt that Shein is successful worldwide due to its competitive pricing strategy.
Is Shein Cheaper Than Primark?
In some occasions Primark can be cheaper than SHEIN, however, SHEIN prefers traditional fundamentals while SHEIN favors the most cutting-edge designs.
Is Shein Good Quality?
Though generally not high quality, Shein can be of good quality for the price.
Does Shein Use Child Labor?
The business asserts that it never uses child or forced labor.
