If you're fond of shopping online for clothes, then you likely heard about Shein. After all, it was the subject of a previous TikTok trend where influencers would present hauls from the online fashion shop, expressing how cheap it can be compared to competitors.
Shein's Plans in the US
Shein is one of the fastest-growing fashion platforms to date as customers are enticed by its affordable prices and accessibility. The Singapore-based company has seen an increase in US customers over the years and plans to officially go public in the US.
The apparel company has already raised its valuation by $2 billion this year, which is now at $66 billion. However, Shein is expected to go public with an even higher valuation number at $90 billion, as reported by Tech Crunch.
Even without the company going public in the US, it has already proven itself to be a successful business, with a higher valuation of $100 billion back in April 2022. It is also expected to grow even further in the coming years.
With similar designs from H&M and Zara, shoppers were drawn to the online retailer. Since they don't exactly have physical stores, the prices can go as low as $3 per item, which is one of the reasons why customers continue to shop there to this day.
While the success of the company is evident, it has also been linked to many controversies over the years, and they go from copyright infringement to something as bad as overworking and underpaying its employees in factories.
Read Also: TikToker Believed to be Used by Shein to Fix Its Reputation
Why Shein Was Deemed a Problematic Company
TikTok may have been instrumental in pulling in buyers for the fashion giant, but it has also been the platform where users came to voice out their concerns regarding the practices within the company. That, and the environmental impacts of Shein.
Some TikTok users revealed that Shein stole their designs without their permission, but mostly, many are calling out Shein's fast fashion practices that cause harm due to massive amounts of textile waste ending up in the environment.
Expert in energy and sustainability, Jasmine Schmidt said that one of the biggest issues with Shein is their lack of disclosure, wherein as one of the biggest private companies, they aren't as transparent with their volume of production, where they're sourcing materials from, and their emissions.
Clothes that are bought cheap don't usually hold too much value for customers, and they end up throwing away the clothes when they have outgrown the style or purpose. This results in disposed clothes ending up in landfills, as per CBS.
It was also brought up that the reason Shein is such an affordable brand is because of its improper labor practices, which have been the subject of many complaints and reports. The company can release around 2,000 pieces of clothing per day.
It helps that Shein is equipped with all the resources it needs along with the personnel. It has an in-house design team, the ability to produce new products, and the resources to ship their own items out. This eliminates the transaction fees for third-party businesses and is a quicker process.
Related: SHEIN To Spend $15 Million for Its Supply Factories After Questionable Labor Practices Found
