Why Is Shein So Cheap

Are you a fan of Shein but wonder why their products are so cheap? Let’s delve into why Shein offers such budget-friendly prices and more.

This article begins by explaining what this fast-fashion clothing brand stands for. Next, we’ll explore why this brand’s products are incredibly cheap.

Toward the end, we included an FAQ section. Here, we address some of the most commonly asked questions about Shein.

What Is Shein

Shein (pronounced SHE-in) is an international e-commerce platform specializing in budget-friendly fast-fashion clothing and accessories. Founded in 2008 by Chris Xu, Shein started as a small online store named “SheInside” in Nanjing, China.

The company started as a business-to-customer (B2C) platform, focusing on selling women’s clothing. However, its product range expanded to include men’s and children’s clothing, shoes, and accessories over time.

Also, the brand now operates on a direct-to-consumer (D2C) model. Hence, By eliminating middlemen, it can offer its products cheaper, appealing to a broad global customer base.

Shein mostly uses social media and digital marketing strategies to build its brand and attract customers. The brand has a strong presence on social media platforms like Facebook, Instagram, YouTube, and TikTok.

It utilizes influencer marketing by partnering with popular social media influencers to endorse its products. Therefore, expanding its reach to a broader audience.

Why Are Shein Products So Affordable

Shein is a famous brand that people admire due to the extreme affordability of their product. However, the brand has had a fair share of controversies as people speculate some unethical reasons for their extreme affordability.

Nonetheless, this section explains various reasons Shein products are so cheap.

1. Cheap Labor

One of the significant reasons Shein’s products are so affordable is that they use cheap labor to manufacture them. Many of their clothing items are made in China, where the minimum wage is cheaper than in developed countries like the US or the UK.

Due to that, the brand can sell its products at a lower price and still make a profit. However, there are downsides to cheap labor, including poor working conditions.

Besides, while Shein says they pay their workers fairly, many believe Shein exploits them. In fact, some employees have stated that they often work 18 hours a day and make just 0.27 yuan (0.038$) per product.

2. They Use Cheap Materials

Shein updates its website with almost 1,000 new clothing items daily. They initially produce only 50 to 100 pieces of new style and observe their online performance before mass production.

However, to mass-produce clothes quickly, Shein mostly uses cheaper lower-quality materials. Besides, the brand is infamous for recreating the designs of luxury brands.

Basically, they sell similar or almost direct copies of luxury clothes at much lower prices.

3. Direct-to-Consumer Model

Shein follows a direct-to-consumer (D2C) business model. Doing that removes the need for intermediaries like wholesalers and physical retailers.

Hence, Shein sells their products only online. This makes them unique compared to other fast-fashion brands like Zara.

Due to that, they don’t pay rent, utilities, or employees to manage any stores.

This keeps the daily operational costs low, allowing them to sell their clothes as cheaply as possible. However, Shein occasionally has pop-up stores or events where people can shop for clothes in-person.

4. Influencer Marketing

Shein uses influencer marketing, one of the most affordable forms of marketing. Influencer marketing is a marketing technique where companies use social media influencers to advertise their products.

Furthermore, this form of marketing is effective because influencers already have loyal audiences who trust their opinion. Besides, it is typically cheaper than commercials, social media ads, and celebrity endorsements.

Thus, Shein saves money on marketing while getting more clicks and purchases, which equates to inexpensive products.

5. Discounts

This low-cost online fashion brand offers discounts. This encourages customers to buy more as discounts further make the product affordable.

As a matter of fact, some discounts can be up to 50% off!

Besides, if you go to Shein’s official website, you will probably see at least one discount code on the front page. Also, they mainly offer discounts for first-time buyers.

Additionally, they have discounts for people who sign up for their email marketing program. Moreover, influencers who promote Shein products usually receive promo codes.

The influencers can share the promo codes with their followers for a certain percentage off their order. Aside from that, Shein offers free shipping on certain orders, encouraging people to buy more.

Frequently Asked Questions

Conclusion

Shein is a fast-growing fast-fashion brand that offers cheap clothing items. The brand is able to maintain affordable prices due to various factors.

However, the brand has received a lot of criticism over the years about some unethical methods used to cut costs. These include cheap labor and the use of cheap materials.

Nonetheless, some impressive factors contribute to Shein’s affordability. Some of these factors include their direct-to-consumer business model and influencing marketing.

Moreover, the affordability of the brand’s product makes it famous and beloved by many people.

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References And Further Reading

1. makeuseof.com – Where Does Shien Ship From and How Is it So Cheap?
2. thelist.com – The Real Reason SHEIN Clothes Are So Cheap
3. greenmatters.com – Shien May Charge You Low Prices — but the Fast Fashion Brand’s Laborers Are Paying
4. mission-statement.com – Why Is Shein So Cheap? (An In-Depth Look)
5. wikihow.com – How Shein Charges Such Low Prices
6. blog.cheapism.com – Why Is Shien So Cheap — and Is It Ethical?