Maya stared at the neatly packed clothes in her closet, all purchased from Shein over the past year. From vibrant dresses to trendy crop tops, Shein has been her go-to for every occasion. Maya wasn’t alone in her devotion to the fast-fashion giant; Shein’s sleek app and irresistible prices had become a staple for millions of shoppers worldwide. But then, in late 2024, headlines began flashing everywhere: “Shein to Shut Down Operations.” The fashion world was shaken. How could a brand that seemed to dominate the wardrobe of every fashion-forward young person possibly come to an end? For customers like Maya, it marked the end of an era. For the industry, it was a signal of deeper issues bubbling beneath the surface.
In the following article, we will explore why Shein—a brand that thrived on its rapid production model, savvy use of social media, and ultra-low prices—decided to shut down. We will dive into the factors that led to the decision, citing concrete statistics and expert analyses, and evaluate what this closure means for the future of fast fashion.
The Rise and Dominance of Shein
Founded in 2008 by Chris Xu, Shein quickly became synonymous with fast fashion. What started as a Chinese e-commerce platform selling wedding dresses and women’s fashion became a global sensation, especially during the 2010s. By 2021, Shein had overtaken more established brands like H&M and Zara, earning a spot as the world’s largest online-only retailer of fast fashion.
One of Shein’s key differentiators was its use of data and artificial intelligence (AI) to identify and respond to fashion trends. With the ability to churn out new designs in as little as three days, Shein’s production process was remarkably efficient compared to the industry standard, which typically ranges between two weeks to several months. According to a Business of Fashion report, Shein released a staggering 6,000 new styles daily by 2022—an astounding figure compared to H&M’s 25,000 new items annually.
By the end of 2022, Shein had a reported revenue of $16 billion and commanded a market share of 28% of all online fast-fashion sales in the U.S. alone, according to data from the Wall Street Journal. Shein had perfected the formula: combine micro-trend spotting with ultra-low prices and leverage social media influencers to create a potent marketing force.
However, beneath this glossy surface lay significant challenges.
The Fast-Fashion Giant’s Growing Pains
As Shein grew, so did concerns about its business model. Critics pointed out several pressing issues: environmental degradation, labour exploitation, intellectual property theft, and a lack of transparency in its supply chain. By 2023, these concerns had gained enough momentum to provoke a public outcry, with numerous reports and investigations into the company’s practices.
Environmental Impact
One of the most pressing criticisms against Shein was its environmental footprint. Fast fashion is notorious for being one of the biggest contributors to global pollution, with 10% of global carbon emissions and 20% of wastewater coming from the fashion industry, according to the United Nations Environment Programme (UNEP). Shein’s hyper-fast production and disposable fashion ethos exacerbated these issues.
The company’s overwhelming volume of new styles encouraged overconsumption. A 2022 report by Greenpeace found that Shein garments, produced at such low cost, were often worn only a few times before being discarded, contributing significantly to landfill waste. Shein was criticized for “planned obsolescence,” essentially creating clothes that were so cheaply made that they would fall apart after just a few uses, pushing consumers to buy more. Additionally, the overproduction of synthetic fibres, such as polyester, used in Shein’s clothing added to the microplastic pollution in oceans, harming marine life.
Labor Concerns
Behind Shein’s lightning-fast production were poorly paid workers, many of whom operated in unregulated factories. In 2022, a documentary by Channel 4’s “Untold” revealed that workers in Shein’s supply chain were working 18-hour shifts, earning just $0.27 per garment. The expose shocked many Shein customers, sparking calls for boycotts and a broader conversation about labour exploitation in the fast fashion industry.
The Turning Point: Public Outcry and Regulatory Scrutiny
As environmental activists and labour rights advocates ramped up their campaigns against the brand, governments around the world began taking notice. In 2023, the European Union passed the Textile Waste Reduction Act, which included stringent regulations aimed at curbing fast fashion’s environmental impact. Shein, with its prolific waste generation, faced increasing pressure to reform its business practices. The new regulations required companies to disclose their waste generation and commit to reducing carbon emissions, creating a regulatory nightmare for fast fashion giants reliant on massive production.
By 2024, the pressure culminated in a series of high-profile lawsuits. Intellectual property theft claims began to pile up, with independent designers accusing Shein of copying their designs without compensation. A lawsuit in the U.S., filed in mid-2023, saw $100 million in damages awarded to a collective of independent designers, further tarnishing Shein’s public image.
Concurrently, Shein was also facing growing scrutiny from consumers. A 2024 survey by Morning Consult found that 42% of Shein’s primary customer base—Gen Z—had reduced or stopped shopping from the platform due to ethical concerns. This shift in consumer sentiment, paired with mounting regulatory and legal challenges, put the brand in an increasingly precarious position.
The End of an Era: Why Shein Decided to Shut Down
Faced with intensifying scrutiny from regulators, lawsuits, and a shifting consumer base more concerned with sustainability, Shein made the unprecedented decision to shut down operations in late 2024. While the company could have attempted to pivot toward more sustainable practices, its rapid-fire production model was too deeply entrenched in its DNA to overhaul effectively.
Insiders pointed to a series of last-ditch efforts made by Shein to improve its image. In early 2024, Shein announced its “Sustainability Action Plan,” which pledged to use 50% recycled materials by 2030 and improve labour conditions in its supply chain. However, many saw these moves as too little, too late. The company had built its empire on ultra-cheap production, and shifting toward sustainability would have dramatically increased costs, undermining the very competitive advantage that had made it successful.
With plummeting sales, increasing regulation, and significant public relations challenges, the board ultimately decided that shutting down was the most viable option. In a statement released in September 2024, Shein cited “unforeseen challenges in meeting evolving global standards and consumer expectations” as reasons for its closure.
What’s Next for Fast Fashion?
The closure of Shein marks a significant turning point in the fast fashion industry. Its rise and fall illustrate the complexities of a business model built on rapid consumption, environmental degradation, and labour exploitation. Shein’s shuttering signals a potential shift toward more sustainable, ethical fashion—something consumers are increasingly demanding.
In the aftermath of Shein’s closure, many fast-fashion companies are being forced to reevaluate their practices. Brands like Zara and H&M have already pledged to reduce their environmental impact by incorporating more sustainable materials and increasing transparency in their supply chains. Newer, more sustainable competitors, such as Reformation and Everlane, have gained traction by marketing their commitment to ethical production.
A New Consciousness?
While it remains to be seen how the fast-fashion landscape will adapt in the long term, one thing is clear: consumers have more power than ever before. The increasing demand for transparency, ethical production, and sustainable fashion practices may drive meaningful change in an industry historically resistant to it.
The shutdown of Shein serves as a reminder that even the most dominant players can fall when they fail to evolve with the times. For Maya, and millions of others who once relied on Shein for cheap, trendy clothing, the message is clear: fashion may be fast, but the consequences of not keeping up with the world’s changing values can be even faster.
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