Shein

Shein
Company type	Private
Industry	E-commerce, Fast fashion
Predecessor	ZZKKO
Founded	October 1, 2008; 18 years ago in Nanjing, China
Founder	Chris Xu
Headquarters	Singapore, Singapore
Area served	Europe, America, Australia, Middle East, global
Key people	Chris Xu (Founder), Marcelo Claure (Chairperson for Latin American operations)
Products	Women's apparel, men's clothing, children's outfits, accessories, cosmetics, footwear, handbags, fashion products
Number of employees	Approximately 900 (2016)
Website	shein.com

Shein (stylized as SHEIN; ) operates as an international e-commerce platform specializing in fast fashion. While its primary focus is on women's apparel, the company also markets men's clothing, children's outfits, accessories, cosmetics, footwear, handbags, and various other fashion products. Shein serves customers across Europe, America, Australia, the Middle East, and beyond.

Established in Nanjing, China, in October 2008 under the name ZZKKO by entrepreneur Chris Xu, Shein had grown to become the largest fashion retailer worldwide by 2022. The company’s main office is located in Singapore.

Renowned for offering affordable clothing, Shein’s expansion has been fueled by its appeal to younger Millennial and older Generation Z demographics. Initially functioning similarly to a drop shipping operation that procured wholesale goods from Guangzhou, Shein began developing its proprietary supply chain in 2012, transforming into a fully integrated retail business. By 2022, its supply network comprised over 3,000 suppliers primarily situated in Guangzhou. The company has faced criticism related to allegations of Chinese sweatshop conditions and child labor.

In 2022, Shein relocated its headquarters from China to Singapore to enhance regulatory adherence, facilitate global growth, and optimize financial management while keeping supply chains and warehouses operational in China. The firm reported revenues of US$32 billion in 2023, with projections estimating US$50 billion for 2024—nearing the combined sales figures of established retailers such as Zara and H&M. After reaching a valuation of $100 billion in April 2022, the company's estimated worth was $30 billion by early 2025.

Shein's business strategy has capitalized on benefits arising from the China–United States trade war, particularly regarding customs tariffs. The company has encountered trademark conflicts, legal battles with rivals, concerns over product safety, accusations of tax avoidance, and issues related to labor and human rights.

2008–2012: inception and initial business approach

Originally launched as ZZKKO in China during 2008 by entrepreneur and SEO marketing expert Chris Xu (Xu Yangtian), Shein’s founder has a somewhat ambiguous background; some accounts describe him as a Chinese-American alumnus of George Washington University, whereas others indicate he was born in 1984 in Shandong province and attended Qingdao University of Science and Technology. Chinese media depict Xu as an average student from humble beginnings, with Shein confirming his Chinese birthplace.

The website SheInside.com debuted in March 2011, initially positioning itself as a leading wedding dress retailer while also offering general women's fashion. At this point, Shein sourced merchandise from Guangzhou’s wholesale garment market—a central hub for its clothing producers. During this period, the business model resembled drop shipping by selling third-party wholesale goods directly to international buyers without engaging in design or manufacturing processes.

2012–2019: rebranding and transition to retailer

In the early 2010s, Shein expanded its presence into Spain, France, Russia, Italy, and Germany while diversifying its offerings to include cosmetics, footwear, handbags, and jewelry. The company launched its current website in 2012 and utilized social media marketing by partnering with fashion influencers on platforms such as Facebook, Instagram, and Pinterest.

By acquiring Chinese e-commerce brand Romwe in 2014, Shein evolved into a fully integrated retailer. In 2016, it employed around 100 staff members with headquarters established in Guangzhou. The brand simplified its name from Sheinside to Shein in 2015 to create a more concise and memorable identity.

By 2016, founder Chris Xu had built a creative team of approximately 800 designers and prototype developers producing garments under the Shein label. The company refined its supply chain management by eliminating suppliers associated with poor-quality products or substandard imagery.

Registration in Singapore

In 2019, Roadget Business Pte, a company registered in Singapore, listed Chris Xu along with other individuals as its representatives. By 2021, Shein had officially deregistered its primary Chinese business entity, Nanjing Top Plus Information Technology Co Ltd. Documents filed in Singapore reveal that Roadget manages Shein's global website operations and holds ownership of its trademarks.

2020–present

Throughout the COVID-19 pandemic year of 2020, Shein reportedly achieved $10 billion in revenue, continuing a streak of seven years with sales growth exceeding 100% annually. By October of that year, it had become the largest online-only fashion retailer worldwide. Its early and strategic use of TikTok as a platform for viral marketing played a crucial role in expanding its customer base.

By November 2021, Shein's market valuation had surged from $15 billion to $30 billion. According to Ernest Analytics, it was recognized as the leading fast fashion retailer in the United States and had also launched e-commerce services in Mexico.

From July to December 2021, Shein introduced between 2,000 and 10,000 new product styles daily on its mobile app. A survey conducted in 2022 ranked Shein as the second most popular e-commerce platform among American teenagers.

In 2022, Shein moved its corporate headquarters to Singapore. In April of that year, it secured private funding ranging from $1 billion to $2 billion and reported holding a 28% share of the U.S. fast fashion market. By May 2022, Shein had become the largest fast-fashion company globally with a valuation estimated at $100 billion. Fortune magazine emphasized Shein’s focus on Generation Z consumers and its effective combination of big data analytics with rapid manufacturing capabilities in China to produce affordable fashion designs.

In October 2022, The Wall Street Journal reported that Shein’s revenue had reached $24 billion—approaching the earnings of established fast fashion giants such as Zara and H&M. Its main competitors include ASOS, Fashion Nova, Forever 21, PrettyLittleThing, Temu, and Topshop. In August 2023, Shein entered into a joint venture with SPARC Group (the owner of Forever 21), whereby both companies acquired minority stakes in each other to broaden their market presence.

Expansion in North America and potential IPO

In May 2022, Shein launched its marketplace platform featuring third-party sellers in Brazil and the United States. That same year, it established a distribution center in Whitestown, Indiana, with plans underway for additional warehouses in southern California and the northeastern United States. In November 2022, Shein inaugurated a corporate office along with a distribution center in Markham, Ontario, which serves as its primary hub for Canadian operations. The company reported sales totaling $23 billion for the year 2022.

By July 2023, Shein announced record profits for the first half of the year and held a valuation of $66 billion, down from $100 billion in the previous year. In February 2023, Marcelo Claure was named chairperson for Latin American operations. Although headquartered in Singapore, Shein continued to rely predominantly on Chinese manufacturers throughout 2023. The company operated approximately 100 factories within Brazil and aimed to expand this number to 2,000.

In June 2023, Shein encountered criticism after influencers promoted its manufacturing facilities located in China. That year also saw informal discussions between Shein and major U.S. technology firms Amazon and Google regarding potential investment opportunities. The company anticipated a future listing on the New York Stock Exchange. In August 2023, Shein obtained a temporary restraining order against competitor Temu over allegations of trademark infringement amid ongoing U.S. legal disputes accusing each other of monopolistic practices. Additionally, Shein announced plans to open a warehouse facility in Mexico to enhance its presence across Latin America. In December 2023, Temu filed a lawsuit against Shein accusing it of unlawful interference with suppliers.

In June 2024, Shein submitted an application for an initial public offering on the London Stock Exchange, drawing criticism from various human rights organizations. By April 2025, the Financial Conduct Authority had approved its IPO prospectus. However, Bloomberg News reported that efforts by Shein to diversify supply chains away from mainland China were obstructed by the Chinese government. Simultaneously, tariffs implemented during the Trump administration resulted in higher prices within the U.S., hindering IPO progress. Furthermore, Shein failed to obtain approval from the China Securities Regulatory Commission for listing in London and is reportedly considering pursuing a listing on the Hong Kong stock exchange instead.

Legal Disputes with Temu

In December 2022, Shein initiated legal action against Temu, alleging that the rival company enlisted online influencers to disseminate false and misleading claims about Shein in order to promote Temu’s merchandise.

By August 2023, Shein sought an injunction from the High Court in London, asserting that numerous product images used by Temu’s sellers were direct copies of its own listings. Shein demanded the removal of these infringing materials and sought damages amounting to at least £100,000.

In February 2024, Temu responded with a counterclaim, accusing Shein of breaching UK competition laws through the enforcement of exclusive supplier contracts. This counterclaim was valued at £4.2 million ($5.5 million), a charge Shein has denied. Additionally, Temu alleged that Shein engaged in "mafia-style intimidation," including coercion and detainment of suppliers in China. Both cases are slated for trial toward the end of 2026.

Marketing

Shein’s retail operations are conducted via its website and mobile applications available on platforms such as Google Play Store, App Store, Galaxy Store, and Huawei AppGallery. A significant portion of its traffic is driven by TikTok trends featuring bulk purchases and haul videos. On May 17, 2021, downloads of Shein’s app surpassed those of Amazon; it ranked as the second most popular shopping application worldwide in 2021 and was the most downloaded app in May 2022.

The company utilizes generational psychology as a core component of its marketing tactics to stimulate expansion. In 2020, Shein was the most frequently discussed brand on TikTok and YouTube and ranked fourth on Instagram. Its affordable pricing appeals to budget-conscious teenagers who often showcase their purchases on social media platforms.

To encourage user acquisition and retention, Shein offers competitively low prices alongside incentives such as discounts for increased spending on future orders. The platform employs an algorithm-based recommendation engine and motivates frequent user engagement through activities like adding products to carts, viewing live streams, submitting product reviews, and participating in contests that reward points redeemable for discounts.

Manufacturing

Originally, Shein sourced apparel from wholesale markets in Guangzhou, China, without designing its own collections. By 2014, it transformed into a fully integrated retailer by taking control over its supply chain. Currently, Shein relies on a network of manufacturing partners responsible for producing and delivering its merchandise.

The company excels at rapidly identifying trends and can manufacture items within three days after spotting new styles. It adopts a small-batch production approach by initially ordering approximately 100 units to gauge consumer demand before scaling up orders if interest proves strong. This strategy contrasts with competitors like Zara, which typically place larger orders around 500 units, increasing the risk of excess inventory. Bloomberg News highlights Shein’s small-batch production model as a critical element of its success that also benefits suppliers as the company grows.

Lobbying

In 2022, Shein enlisted lobbying firms including Akin Gump Strauss Hauer & Feld and engaged lobbyist Ben Quayle, as revealed by U.S. federal disclosures. According to Politico, this lobbying initiative aims to enhance Shein’s reputation in Washington amid increasing scrutiny regarding its business operations.

Tax Treatment

Shein benefits from exemptions on export and import duties that improve its profit margins. Under Section 321 of the U.S. Trade Facilitation and Trade Enforcement Act of 2015, imports valued up to $800 per individual are exempt from customs duties, allowing Shein to ship goods into the U.S. without paying taxes and thereby gaining an advantage over domestic retailers. However, in September 2024, the Biden administration proposed eliminating this $800 "de minimis" exemption specifically for Chinese e-commerce companies such as Shein.

In April 2023, Brazilian authorities accused Shein of exploiting a legal loophole to avoid paying taxes and engaging in what they described as "smuggling" activities targeting Brazilian consumers.

Allegations of Tax Avoidance

The UK mandates that international sellers dispatching goods valued below £135 must register for UK VAT, collect it from customers, and forward it to HM Revenue and Customs. According to reports, Shein did not adhere to these requirements for at least nine months following the regulation’s implementation; furthermore, its website omits the necessary UK corporate registration number and fails to display VAT charges as legally required.

Environmental Concerns

In 2021, Deutsche Welle published a video critiquing Shein’s ultra-fast-fashion business model, emphasizing its appeal to teenagers and young adults prone to impulsive buying, alongside its substantial environmental repercussions. Additional media outlets have highlighted the app’s addictive qualities, with low-cost products encouraging excessive purchasing. Because of their affordability, Shein’s garments often lack longevity, leading to increased textile waste. A 2023 report by Time revealed that Shein generates over 6.3 million tons of CO2 annually—an amount comparable to emissions from roughly 180 coal-powered plants—largely due to extensive use of virgin polyester and high oil consumption.

To address these issues, Shein introduced a resale feature on its US app allowing users to buy and sell pre-owned Shein apparel. Nonetheless, skepticism remains as many consumers might still favor new items given the company’s low price points.

Hazardous Chemical Exposure

An investigation by Marketplace, led by University of Toronto professor Miriam Diamond, identified Shein selling toddlers’ jackets containing lead at levels nearly twenty times above Health Canada’s limits. Additionally, a red purse was found with five times the allowable lead concentration. Shein pledged to withdraw these products and suspend associated suppliers until the matter is resolved. In May 2024, South Korean regulators discovered certain Shein items contained unsafe concentrations of phthalates.

Violations of Labor Regulations

A 2021 report from Public Eye exposed that workers at six Shein subcontractors in Guangzhou were subjected to 75-hour workweeks, breaching Chinese labor laws. The investigation also uncovered workshops with obstructed corridors and stairways. Channel 4’s documentary Inside The Shein Machine further revealed factory employees compelled to endure 17-hour shifts producing hundreds of garments daily for a base wage of $20 per day, with deductions of $14 imposed for mistakes.

In 2024, Shein disclosed two instances of child labor within its supply chain during enhanced oversight measures, including one case involving an 11-year-old worker. Yinan Zhu, Shein’s general counsel for EMEA, briefed UK parliamentarians on these matters in 2025. The company has since formed an internal team dedicated to supplier monitoring and collaborates with independent organizations such as Intertek to perform routine, unannounced inspections.

Assertion of ISO Certification

In August 2021, Shein stated on its website that its factories held certifications from the International Organization for Standardization (ISO) and complied with standards including SA8000. However, ISO develops standards but does not directly certify companies. The SA8000 standard is overseen by Social Accountability International, which confirmed that Shein did not possess this certification. Following inquiries from Reuters, the claim was subsequently removed.

Reporting on Anti-Modern Slavery Efforts

The UK's Modern Slavery Act 2015, along with comparable legislation in Australia, mandates that major corporations disclose their measures against modern slavery. In 2021, Shein opted not to provide revenue details to Reuters but indicated it was in the process of preparing such transparency reports.

In June 2023, Shein appeared in a report issued by the United States House Select Committee on Strategic Competition between the United States and the Chinese Communist Party entitled "Fast Fashion and the Uyghur Genocide."

Inquiry by the European Commission

By February 2025, the European Commission had requested access to Shein’s internal records concerning potential risks associated with illicit products on its platform, as part of an investigation under the Digital Services Act. In May 2025, the Commission accused Shein of violating EU regulations.

French Government Probe

In November 2023, France’s Ministry of Economics and Finance initiated an investigation into Shein’s adherence to both international standards and French legislation, following allegations from the Socialist Party related to human rights violations, environmental issues, and consumer protection breaches. Shein pledged full cooperation with this inquiry.

Use of Cotton from Xinjiang

A November 2022 report by Bloomberg News revealed that Shein's clothing line included cotton sourced from Xinjiang, raising concerns about forced labor practices linked to that region. Subsequently, U.S. senators sought detailed information regarding Shein’s involvement with Xinjiang cotton.

Legal analysts suggest that Shein might evade consequences under the Uyghur Forced Labor Prevention Act because most shipments destined for the U.S. fall below the $800 threshold (de minimis shipments), which often avoids customs scrutiny.

In May 2023, members of the U.S. Congress requested that the U.S. Securities and Exchange Commission delay Shein's initial public offering until confirmation that its supply chain is free from forced labor. By August 2023, sixteen U.S. states formally asked the SEC to conduct a comprehensive review of Shein’s supply chain compliance before proceeding with the IPO.

During a parliamentary hearing in January 2025, Yinan Zhu, Shein's general counsel in London, declined to confirm whether cotton sourced from Xinjiang is utilized by the company.

Intellectual Property Violations

Shein has been subject to legal actions initiated by independent designers and corporations such as Deckers Outdoor Corporation and Levi Strauss & Co. over allegations of copyright and trademark violations, with most disputes resolved through out-of-court settlements.

In 2021, AirWair International Limited, known for producing Dr. Martens boots, filed a lawsuit against Shein and its affiliate Romwe for marketing replicas named "Martins" at discounted prices while using genuine Dr. Martens imagery to attract buyers. Shein denied these allegations.

That same year, Ralph Lauren brought a trademark infringement and unfair competition suit against Zoetop Business Co., Shein’s parent company, accusing it of selling apparel bearing marks confusingly similar to Ralph Lauren’s trademarks to capitalize on its brand equity.

In 2022, Mexico’s Secretariat of Culture expressed concerns about Shein’s incorporation of Mayan cultural motifs in one clothing design, representing the "collective creativity" of the Mayan people. Following this, Shein removed the item from its online store.

Allegations of Design Appropriation

Shein has been repeatedly accused by individual artists, independent fashion sellers, and brands such as Reclamare PH and Sincerely RIA of replicating their creative works, including enamel pin designs. Legal safeguards are often limited because products serving basic utilitarian purposes typically fall outside the scope of copyright protection, requiring plaintiffs to demonstrate distinct original elements. According to legal experts, fast-fashion companies may replicate designs "just enough" to avoid violating protected intellectual property rights.

In 2018, Ilse Valfre from the Los Angeles-based brand Valfré reported that Shein was marketing "exact replicas" of her creations. Similarly, Quinn Jones, co-founder of Kikay, identified earrings on Shein resembling their designs, which resulted in product removal and termination of the supplier relationship. The hashtag "boycottShein" gained momentum on platforms like TikTok and Twitter in 2020 to raise awareness and support independent creators. In 2021, Mariama Diallo of Sincerely Ria publicly accused Shein of appropriating her designs.

A civil lawsuit filed in July 2023 in the United States alleged that Shein’s copyright violations constituted racketeering under the Racketeer Influenced and Corrupt Organizations Act (RICO). Initiated by three designers, the suit claims Shein manufactured and retailed direct copies without authorization and may have utilized artificial intelligence in the process. Industry observers suggest that Shein’s aggressive expansion strategy fuels rapid product turnover despite the inherent intellectual property risks.

In January 2024, Japanese apparel leader Uniqlo initiated legal action against Shein Japan and its affiliates over imitation crossbody pouches, demanding an immediate halt to sales and compensation for damages incurred.

Concerns Regarding Data Security

Shein experienced a data breach in 2018 that exposed email addresses and encrypted passwords belonging to approximately 6.42 million users. Subsequent investigations revealed the breach actually impacted around 39 million accounts and included compromised credit card information, with many affected users neither notified nor required to change their passwords. In 2022, Zoetop, Shein’s parent company, was penalized $1.9 million by New York state authorities for insufficient response measures following the breach.

In 2023, US regulators raised concerns about data security risks associated with Shein and Temu amid heightened scrutiny of applications linked to Chinese ownership. By December 2023, the United States House Committee on Energy and Commerce formally requested information regarding Shein’s data privacy protocols and its connections to the Chinese Communist Party. Reports from The Wall Street Journal in January 2024 indicated that China’s Cyberspace Administration was investigating Shein’s data protection practices ahead of its planned initial public offering.

Ban of App Usage in India

In June 2020, India's government prohibited access to the Shein app due to privacy issues. Following border conflicts between China and India during 2020–2021, India’s Ministry of Electronics and Information Technology blocked Shein along with 59 other Chinese applications under Section 69A of the Information Technology Act, citing threats to national sovereignty and territorial integrity. This legislation authorizes blocking public access to information through any computer resource. Nonetheless, purchasing Shein merchandise via alternative websites not governed by Section 69A remains lawful within India.

Controversy Over Offensive Imagery

In July 2020, after facing public criticism, Shein removed a necklace featuring a swastika symbol; the company explained that it was intended as a Buddhist emblem rather than the Nazi swastika.

In May 2021, Shein attracted backlash for selling a phone case depicting a chalk outline of a handcuffed Black man—a design created following Michael Brown’s death. The company issued an apology for the unintended offense caused and acknowledged unauthorized use of the artwork. The original creator requested that proceeds from sales be donated to Black Lives Matter.

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