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Discover what Shein is, how it became a global retail giant and why its business model revolutionized fast fashion.
Shein, a clothing and accessories retailer originally from China, has become a true global phenomenon in the fast-fashion sector. Founded in 2008 under the name ZZKKO, the company initially focused on selling wedding dresses. However, it was its ability to adapt to consumer behavior and intensive use of technology that transformed Shein into one of the largest retailers in the world.
Shein's exponential growth is directly linked to the Covid-19 pandemic, a period in which the traditional fashion industry faced difficulties, but which also marked a paradigm shift in online consumption. With physical stores closed, consumers started buying clothes online, often just for the feeling of novelty and digital belonging. Shein knew how to take advantage of this moment like no other brand.
Shein's Journey: From Chinese Startup to Global Giant
Founded by entrepreneur and digital marketing specialist chris xu, Shein began its journey with a niche focus — selling exclusively wedding dresses. In the following years, the company began to expand its portfolio, especially with casual women's clothing, and changed its name to “Sheinside”.
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The turning point came in 2015, when the brand officially changed its name to “Shein.” Since then, its internationalization process has gained momentum, reaching markets such as Germany, Russia, Italy, Spain and France. Today, Shein operates in more than 150 countries, with a strong presence in regions such as Latin America, Europe and North America.
Read: Bargains are over: Shein, Temu announce price hikes in response to Trump's new tariffs
Innovative business model: fast-fashion with artificial intelligence
One of Shein's biggest differentiators is its business model. The company operates on demand, meaning it does not keep large volumes of stock. Items are produced according to consumer interest, based on real-time data analysis. This allows for agility in creating new products and an impressive update rate: the site receives around 6 thousand new items per day.
In addition, Shein monitors behavior trends on social networks such as TikTok, Instagram and Google Trends, which ensures launches aligned with the target audience's desires. This combination of data analysis and agile production has consolidated the brand as a reference in accessible and digitalized fashion.
Shein and Generation Z: the formula for success with young audiences
According to a survey conducted by Piper sandler, Shein is among the most consumed brands by Generation Z, second only to Amazon in popularity. This preference is explained by the offer of stylish pieces, affordable prices and a shopping experience designed especially for the digital native audience.
The app's intuitive interface, filters by style and body type (from slim to plus size), as well as daily coupons and gamification of purchases, make Shein extremely attractive to young consumers, who are looking for constant new products at a low cost.
Shein in Brazil: strategic expansion and pop-up stores
Shein arrived in the Brazilian market in mid-2020, in the midst of the pandemic. The company saw an audience in Brazil that was engaged on social media and interested in affordable fashion. The numbers leave no doubt: according to BTG Pactual, the brand sold US$2 billion in the country last year.
In addition to online sales, Shein has begun to explore the concept of pop-up stores — temporary physical spaces. One of the most recent was announced for Shopping Vila Olímpia, in São Paulo, between November 12 and 16. Before that, in March, the brand had already tested the model at Village Mall, in Rio de Janeiro. The strategy reinforces the branding and allows for greater proximity to the Brazilian consumer.
Why has Shein become one of the largest retailers in the world?
Several factors explain Shein's meteoric success, and they are all interconnected:
- Production on demand: Reduces waste and allows agility in launching trends.
- Low prices: Even with imports, products reach the end consumer with more competitive prices than local brands.
- Data technology: Shein invests heavily in artificial intelligence and machine learning to understand purchasing behavior.
- Variety of products: The diversity in the catalog is immense, with options for all styles and bodies.
- Effective digital marketing: The company invests in influencers, targeted campaigns and social networks.
This combination allows Shein to constantly reinvent itself, keeping consumers' attention and growing its customer base on a global scale.
Controversies and criticism of Shein
Not everything is rosy in Shein's trajectory. The company has been the target of severe criticism regarding its labor practices.
A documentary by the British broadcaster Channel 4, called Inside the Shein Machine: UNTOLD, revealed alarming reports about the precarious conditions in the factories that produce for the retailer. Workers reportedly face workdays of up to 18 hours a day, with only one day off per month, in addition to low wages and withholding of their first payment.
In 2021, an investigation by Reuters showed that the company did not publicly disclose information about the working conditions of its employees — a requirement of countries such as the United Kingdom. In response, Shein claims that it complies with social responsibility requirements and denies the use of child or forced labor.
Sustainability and environmental impact: another challenge for Shein
Another sensitive issue for Shein is sustainability. The business model, which relies on daily launches and high turnover of items, raises concerns about its environmental impact. Critics argue that encouraging rapid consumption encourages premature discarding of clothing and the accumulation of textile waste.
Additionally, some independent analyses have found high levels of chemicals in certain items sold by Shein, leading to discussions about safety and quality control.
Plagiarism, intellectual property and data usage
Shein has also faced accusations of plagiarism in design of parts from independent designers, which has led to lawsuits and online protests. In some cases, small brands have reported that their designs have been copied without permission.
Furthermore, the handling of user data on the app has already been questioned, especially in relation to privacy and the use of cookies to track purchasing habits.
Shein's Market Value and Future Projections
Despite all the criticism, Shein continues to grow. According to Bloomberg estimates, the brand has reached an estimated market value of US $ 100 billion in 2022. This is a figure that puts the company side by side with global retail giants.
Analysts say Shein's next step will be to strengthen its operations with factories in strategic countries, including Brazil. This would reduce delivery times and criticism related to logistics and carbon emissions, as well as potentially alleviate questions about working conditions in China.
Shein vs. the competition: what are other retailers doing?
Shein's impact on the market is so great that other companies are already reacting. Brands such as Zara, H&M and C&A have started to accelerate their launch processes and diversify their digital channels. At the same time, new startups are emerging with promises of sustainable and ethical fashion, seeking a competitive edge.
Shein represents a milestone in the transformation of fashion retail, especially in the way it combines technology, scale and digital influence. At the same time, its trajectory also raises urgent questions about work ethics, sustainability and transparency.
With a solid foundation built on data and trends, Shein is set to continue growing in the years to come. However, its long-term success will depend on its ability to adapt to social and environmental pressures—the growing demands of a consumer who wants to not only consume, but also know how, where, and by whom their clothes were made.
How many physical stores does Shein currently have in Brazil?
Although its operation is mostly online, Shein has explored the model of temporary physical stores, known as pop-up stores, to get closer to the Brazilian public. These units operate for a limited period of time, usually in shopping malls in large capitals, as part of promotional strategies and engagement with local consumers.
So far, Shein does not have fixed physical stores in Brazil. However, it has already been carried out two temporary activations confirmed:
- March 2023: pop-up store at Village Mall, in Rio de Janeiro.
- November 2023: pop-up store at the Vila Olímpia Shopping Mall, in São Paulo.
These experiences demonstrate the brand's interest in testing physical retail and strengthening its presence in the country. The trend is for new temporary units to open in other cities, especially during commercial dates such as Black Friday and Christmas.
