Follow the Money: The Podcast

Shein’s toxic business model

14 snips
Jul 15, 2025
Join investigative journalist Yara van Heugten as she dives deep into the murky waters of Shein's business model. With a keen eye for ethics, she unravels the manipulative tactics that lure young consumers and discusses alarming labor practices. Yara exposes the illusion of sustainability behind Shein's rapid production and the company's struggles with rising regulatory scrutiny in Europe. This insightful conversation reveals the challenges facing ultra-fast fashion and the shifting dynamics in the industry.
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INSIGHT

Shein's On-Demand Pitch

  • Shein claims an on-demand model with tiny batches to avoid excess inventory and lower costs.
  • The company links this model to innovation and sustainability as key competitive advantages.
INSIGHT

Why Shein Is So Cheap

  • Shein's low prices rely on no stores, micro-influencer marketing, and exploiting a de minimis tariff loophole.
  • Avoiding import duties on many small parcels is a major factor enabling ultra-low retail prices.
ADVICE

Consider Per-Item Tariffs To Curb Imports

  • Policymakers should consider imposing a per-item levy to reduce ultra-cheap imports and level the playing field.
  • Such a levy would likely raise prices and reduce mass bulk purchases from platforms like Shein and Temu.
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