That’s Why SHEIN is so CHEAP

If you’ve started shopping at Shein, you already know that their clothes are extremely cheap.  What’s the secret? Does this low price mean poor quality? We answer all of these questions below.

What is Shein?

Shein is a fashion brand founded by a Chinese American in 2012 and currently shipping to more than 150 countries around the world. It is selling more and more thanks to its low prices, fashionable clothes and large presence on social networks like TikTok.

If we were to define Shein in a few lines, these would be its main characteristics:

  • Her clothing items come in a variety of styles, from the latest trends to alternative style clothing. That is why more and more young people and influencers are shopping here.
  • The catalog offers a wide range of sizes from XS to 5XL with its own plus-size collection.
  • It has a huge presence on social networks and its mobile application is one of the most downloaded shopping apps.
  • Shein clothing is very easy to buy and return, with free or very low shipping and return costs.

It has become one of the best site to go shopping for cheap clothes. Their prices are so low that many people are reselling Shein clothes to start a local business.

This is your business model

In our countries we are used to spending a lot of money on clothes, so we are initially surprised to be able to buy almost the same for less than half in Shein. However, it is a very popular business model in China that follows the line of other brands such as Xiaomi: to offer a basic product at an unbeatable price.

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For this to pay off, certain factors must be met without sacrificing quality. These are the reasons why shein clothes are so cheap.

There are Fewer intermediaries

The big clothing brands have their clothes produced in different factories around the world, then distributed to warehouses on different continents and from there brought to stores or your home when you order online.

However, Shein avoids middlemen and the garments go from the factory to a warehouse, from where they are managed and shipped around the world. By avoiding middlemen, costs are saved.

They don’t have any physical stores

It is very pleasant to try on clothes in a store. However, it has a high cost: rent, staff, maintenance. Since Shein has no physical stores, they can afford to have the cheapest clothes.

To compensate for this, Shein provides detailed information on its garments (materials, workmanship, size table …) and offers free returns in many countries. So you can shop from the comfort of your own home without any worries. In some countries with high demand, Shein has opened pop-up stores to promote the brand to its buyers, but the cost of these campaigns is minimal compared to a traditional store.

Their Warehouses are Smaller

You have already seen that there are deals every day in Shein: There are not only discounted clothes, but also discounts and coupons so that you can shop for less. Because Shein is always looking for a warehouse rotation: it is better to sell everything at a lower profit margin than to have the clothes in a warehouse. Flash sales eliminate overstock in warehouses.

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They spend less on advertising

Instead of applying through billboards and television commercials, Shein has focused on digital marketing. Thanks to word of mouth and social networks.

This has resulted in the brand having a sufficiently strong community today to be naturally acquainted with very little investment. And that’s why you can also offer cheaper prices.

Its goal is to be inexpensive

There are fewer and fewer cheap clothing brands in the fashion world: Zara and other companies in the Indetex Group are increasing their prices while increasing the value of their brand. Although Shein has launched several lines of high quality clothing, the foundation of its business is the low cost clothing model that is accessible from anywhere in the world.

They base their profit on volume

Hence, Shein’s goal is not to sell more expensively, just to sell a lot, and that is why it is so cheap. We all know that making clothes is very cheap, but then the brand raises prices for better profit margins. However, Shein wants to earn less per item of clothing, but rather to have more people who can source its products regardless of the price.

Shein’s dresses are cheap, but are they worth buying?

You can find many sites with cheap clothes online, but Shein managed to offer a high quality product for a low price. The quality of their clothing is very similar to that of other global brands such as H&M or Zara, but their prices are very low. All of their garments come with detailed information on measurements, sizes, materials, care as well as comments and photos from other buyers.

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In addition, thanks to their promotions and low prices, they have reached a portfolio of reliable customers who buy regularly. Entering fashion is no longer a question of money thanks to Shein thanks to its prices, discounts and promotions. As if that wasn’t enough, unlike other online sales platforms, Shein places a high value on caring for its customers and its customer service center will always help you resolve your doubts and problems effectively.