A significant reason behind SHEIN’s cheap prices is the fact that the company is almost entirely dependent on online sales. According to an investigation by Wired, SHEIN works primarily with independent designers and producers, placing an initial order of 100 to 200 pieces for an item. The company uses sophisticated software that identifies popular items and automatically reorders them while stopping the production of pieces that don’t sell. Even with this conservative practice, SHEIN adds up to 6,000 new styles to its website daily.
It takes under two weeks for clothing to be produced, but this fast turnaround time comes at the expense of poor working conditions. A documentary by the UK’s Channel 4 called “Inside the Shein Machine: UNTOLD” details horrific working conditions, with factory workers subjected to 18-hour work days and only one day off per month. In addition, it alleges that workers are paid approximately $550 per month to make at least 500 pieces of clothing per day. By cutting labor costs, SHEIN is able to price its products more competitively than other fashion brands that comply with labor regulations.
Another way SHEIN saves money is by relying on influencer marketing, which is cheaper and often more effective than traditional marketing. Influencers post their SHEIN hauls on platforms like Instagram and TikTok, directing people to sales and offering discount coupons. In return, SHEIN pays them a fee for making these videos, as well as a commission on sales.
