Why Is SHEIN So Cheap? Know Their Secret!

Fashion 31-01-2024

SHEIN has rapidly ascended to prominence in the fashion world, especially among millennials. Launched in 2008, the fast-fashion store now has become an eCommerce giant. Its vast array of trendy, affordable apparel, makes it a go-to destination for those seeking the latest styles. Having an inexpensive clothing line means customers upgrade their wardrobes without breaking the bank.

But why is Shein so cheap?

Well, the answer is very simple. SHEIN resonates with the millennials and it fulfills their desires for instantaneous, budget-friendly fashion. To further sweeten the deal, the online clothing store offers Shein coupon codes.

In this article, we’ll discuss:

Why are Shein clothes so cheap?
Is Shein cheap quality?
Reasons why is Shin so cheap

So, stay tuned to find out the reasons behind its affordability and reasonably priced products.

Table of Contents

1. Is SHEIN cheap quality?
2. Why are SHEIN clothes so cheap?
3. Why Is SHEIN So Cheap? 8 Major Reasons
4. The Bottom Line

Is SHEIN cheap quality?

Shein is not cheap quality as their clothes and products provide value for money. However, the quality of SHEIN clothing can vary depending on the items. Given the brand’s low prices, some items might be of lesser quality compared to more premium brands. But over the years, consumers have come to the agreement that their products offer good value for the price.

Still, it’s recommended that you read reviews and view customer photos before shopping for an item. The idea is to get a sense of the quality of specific products.

Why are SHEIN clothes so cheap?

SHEIN clothes are cheap due to their direct-to-consumer online model, efficient production processes, and manufacturing. They buy raw materials and stitch clothes in regions where labor costs are lower. Also, Shein leverages bulk buying for materials, opt for more affordable fabrics and minimizes advertising expenses by using social media.

The online fast-fashion store prioritizes trend-driven designs over long-lasting quality. All these combined strategies allow SHEIN to offer competitive prices to consumers.

Why Is SHEIN So Cheap? 8 Major Reasons

For a better perspective, let’s look deeper into the factors that contribute to SHEIN’s competitive pricing.

Direct-to-Consumer Model

The traditional retail model comprises multiple levels, including manufacturers, wholesalers, distributors, and physical retail stores. Each level adds its own margin, thereby increasing the final cost for the end customer.

SHEIN’s direct-to-consumer (DTC) model eliminates many of these stages. By selling directly to its customers via its online platform, SHEIN removes additional costs associated with physical stores. Since they don’t have to pay rent, utilities, and staff wages, the store can offer clothes at cheaper prices.

Their streamlined model is not only efficient but also enables quicker response to consumer preferences and market trends. Since online shopping is becoming the norm, DTC brands like SHEIN can provide significant cost savings to consumers.

Discounts and Gift Cards

Shien offers discounts and deals, a lot of them, for its customers on a regular basis. The good thing is that you can stack Shein coupons to get even bigger discounts. Online fashion store also offers Shein gift cards and has a college ambassador program.
Related: How to get free Shein gift card.

This provides customers with an opportunities to buy products at lower prices. Shoppers get the best deals and a chance to apply coupons, and this is why Shein is so cheap.

Read: How to apply reference code on Shein

Efficient Production Processes

Fast fashion’s primary characteristic is its ability to move rapidly from design to retail. SHEIN has capitalized on this by employing a ‘quick response’ manufacturing strategy. Reducing lead times means that the company can react quickly to changing fashion trends and manufacture items in demand. This, ultimately, reduces the chances of overproduction or holding unsold inventory.

By minimizing wastage and optimizing production schedules, SHEIN ensures that they aren’t burdened with excess stock. Less deadstock means they can invest more and offer better discounts and deals to their customers and ambassadors.

Low Labor Costs

The emergence of globalization is allowing companies to seek production efficiencies across borders. SHEIN, like many fast-fashion brands, produces a significant portion of its items in countries where labor costs are lower. This manufacturing strategy, while sometimes controversial due to concerns about labor conditions, undoubtedly reduces the cost of each garment.

When labor wages are low, the overall production cost for items drops. And less manufacturing costs mean SHEIN can price its products more competitively.

Minimal Advertising Expenses

Marketing norms are quickly changing, especially after the popularity of social media channels. Brands no longer need to invest heavily in traditional advertising avenues like TV or print media. Instead, they are using platforms like Instagram, TikTok, and YouTube to get direct access to vast audiences.

SHEIN taps into this by collaborating with social media influencers. These partnerships often come at a fraction of the cost of traditional celebrity endorsements or large-scale advertising campaigns. On the bright side, influencers provide Shein with authentic engagement with their followers.

Furthermore, influencer marketing ensures that Shein’s brand message reaches potential customers more effectively.

Bulk Buying Strategy

Economies of scale play a pivotal role in the pricing strategies of large companies. SHEIN, given its vast production quantities, can purchase raw materials in significant volumes. When suppliers receive large, consistent orders, they’re more likely to offer volume discounts. This bulk buying advantage reduces the base cost for fabrics, embellishments, and other essential materials.

The brand buys and produces in bulk to ensure they offer lower prices to the end consumer.

Quality of Materials

Material choice significantly impacts the cost of a garment when it comes to the fashion industry. We know that silk, organic cotton, and other high-quality materials come with a premium price tag. But there are plenty of cheaper alternatives that can mimic their appearance and feel to some extent.

SHEIN often opts for these more affordable materials to manufacture their products. Selecting alternative materials might not offer the same longevity or comfort as their premium counterparts but provide a similar aesthetic appeal. At the same time, they provide a cost-effective solution for manufacturing garments.

This material cost-saving is a hallmark of the fast fashion industry. Brands like Shein follow the same strategy to recreate high-end looks for a fraction of the price.

Trend-Driven Approach

The fast fashion industry thrives on capturing and commodifying the latest trends. SHEIN prioritizes being at the forefront of these shifts, ensuring its offerings are always in line with current consumer desires. However, this rapid cycle means that longevity is often sacrificed for relevancy.

Garments are made to be fashionable now, but not necessarily to last for years. This approach allows SHEIN to focus on design over durability, reducing the need for rigorous quality control. So, the brand doesn’t focus on expensive production techniques aimed at longevity but follows a trend-driven approach.

The Bottom Line

SHEIN’s ability to offer products or clothes at such competitive prices can be attributed to a combination of strategies. The brand follows modern business approaches to take advantage of global production and the digital consumer landscape. We hope you are now aware of why Shein is so cheap and able to provide quality products.