Shein's rise: How the wildly popular but controversial Chinese brand became the most feared fast-fashion retailer in the world

Jennifer Ortakales DawkinsJul 1, 2023, 18:13 IST

TV personality Sofia Suescun attends a Shein event in Ibiza, Spain. Influencers have helped boost the fast-fashion brand's popularity.Xavi Torrent/Getty

Shein is a fast-fashion retailer that produces thousands of garments and accessories at a rapid pace.
In 2022, the company was worth $100 billion — more than fast-fashion predecessors H&M and Zara combined.

Shein took less than a decade to emerge from relative obscurity to become the dominant player in fast fashion and a favorite online shopping destination for Gen Z. But the company is as famous for its controversies as for the trendy, super-cheap clothing that it churns out to the delight of TikTokers everywhere.

In its latest PR stunt, Shein invited influencers to visit its innovation center in China. After posting glowing reviews of their trips, the influencers faced a lot of backlash for ignoring mounting allegations of questionable labor ethics and concerns about Shein's role in climate pollution.

For those unfamiliar with the brand, here's how it chartered a meteoric rise.

Shein sold wedding dresses before it became a fast-fashion retailer

Before it became Shein, the e-commerce website was known as SheInside and sold wedding dresses.Crystal Cox/Insider

Fast fashion took off in the 1990s

Pedestrians walk past Spanish fast-fashion retailer Zara in Shanghai in 2019.Alex Tai/SOPA Images/LightRocket via Getty Images

Shein's AI technology creates new clothing at a record pace

Shein uses AI technology to identify fashion trends and churn out thousands of garments in record time.Kristy Sparow/Getty

Customer hauls on TikTok made Shein a huge success

Shein has gained popularity in large part due to shoppers on TikTok creating hauls to show off what they purchased from the online retailer.TikTok/Alexis Biltz/ashlyn_gv

The average Shein shopper spends $100 a month on clothing

The average Shein shopper is nearly 35 years old.Xavi Torrent/Getty

In 2022, Shein was worth more than H&M and Zara combined

As of this writing, H&M's market cap was $20 billion and Zara's parent company Inditex was valued at $117 billion.Ann Matica/Insider

Shein has faced a lot of backlash for its role in climate pollution

Women search for unused clothes in the Atacama Desert in Chile. The heap is so large that satellites can easily spot it. Fast fashion contributes between 2% and 8% of the world's carbon emissions, the United Nations found in 2018.MARTIN BERNETTI/AFP via Getty Image

Critics question Shein's manufacturing and supply chain practices

Workers manufacture blue jeans in a textile factory. Shein has told the media it does not use manufacturers in the Xinjiang region of China.Lucas Schifres/Getty

Last year, Shein's sales took a tumble

In 2022, Shein's sales declined, according to online spending data from Earnest Analytics.Jade Gao/AFP

The company's IPO plans could be delayed

Sources told Reuters that Shein is eyeing an IPO.(Photo by Spencer Platt/Getty Images)

Analysts say Shein could continue to grab market share

UBS analysts say part of Shein's success comes from its in-person marketing events.David M. Benett

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