Few companies have commanded as much curiosity and criticism in the fast-fashion world as Shein.
“I really want to address some of the misunderstandings. We have received a considerable amount of criticism on our business model because people don’t really understand it,” said Adam Whinston, Shein’s global head of ESG.
Whinston — who joined Shein in December 2021 — was one of many speakers at Sourcing Journal’s sustainability summit held Wednesday. Leaning heavily into Shein’s data, he aimed to lay to rest some misconceptions about the company.
Speaking to Shein’s small batch production (only 50 to 100 pieces) and real-time feedback loop from customers, Whinston argued the model is a “transformative” approach that “reduces our overall production and creates less waste.”
Related Articles
Shein styles, he said, have a 98 percent sell-through rate. “We believe that if the rest of the industry follows this model, it would immediately result in 20 percent less production, which is what experts estimate to be the amount of system waste — the amount of waste that people build into their purchases with their orders with their suppliers.”
You May Also Like
Referencing customer data including a 15,000-person survey, Whinston said only 1 percent (or one in 100) Shein customers are only wearing their Shein pieces once. Along with a 7 percent return rate, the company also found evidence of its customer engaging in circular habits (about 16 percent engage in peer-to-peer resale with Shein products) despite the alleged quality indifference of fast fashion goods.
“The longer products can stay in circulation and get a second life — the better,” said Whinston. “These numbers are good but they’re not as good as they could be, so we’re looking forward to working on programs that will [increase] the longevity, the circulation.
“What we’re trying to do is show that we’re developing programs to address customer concerns. More and more when it comes to customers they want trendy, affordable clothes but they also want sustainable fibers, sustainable packaging,” he continued. “We have work to do in that space, but we’re already making progress.”
He addressed the mission to expand Shein’s “EvoluShein” capsule line, which is a sustainably-billed line using recycled polyester, into the company’s broader sustainability aims. One goal is to convert its entire viscose base to CanopyStyle sourcing standards. But while Shein released its first transparency report to catalogue progress points in February, the company isn’t quite ready to broadcast its greenhouse gas reduction goals.
“We’re not ready to announce publicly what that goal is, but in the coming months, we will be prepared to do that,” he said, pivoting to the common misconception on air freight being Shein’s dominant shipping method and a method more readily chastised for its environmental load. “That’s just not true. There are winter products and jeans that have a higher degree of predictability that we can ship via ocean. That allows us to reduce the carbon footprint.…Things that are very personalized, very lightweight are better candidates for air freight. There is a lot we can do via ocean.”
As the projected $100 billion company furthers its domination, supply chain scrutiny is to be expected, as in the case with a Public Eye investigation (detailing workplace safety malpractice) or a report surfacing toxic chemicals laden in the clothing. To that, Shein stands by its supplier code of conduct, and in severe infractions, a zero-tolerance violation for suppliers which may include being barred from supplying to Shein.
Along with improved auditing standards, Shein is “exploring on-shoring,” according to Whinston, and already counts a new Indiana warehouse to reach the land-locked U.S. consumer.