What: The Shein business model, dissected.

Why it is important: It is a Chinese-inspired business model, applied to the rest of the world. Given the volumes and distances, concerns are increasingly growing over environmental problems it contributes to.

Media are discovering Shein and its innovative business model: after The Economist article , the BBC also reviews what makes this Chinese brand so special, apart from its remarkably low prices which can not entirely explain its massive success over TikTok and YouTube.

The company, which earnings are estimated to top USD 10bn in 2020, proposes 600K products for sale at any given moment, relying on thousands of third-party suppliers and 200 contract manufacturers. They constantly analyse in real-time sales, and can identify, among new products (launched in batches of 50-100 units) which ones have the most potential, also thanks to Shein’s partneship with influencers. New products can be launched in as low as 25 days. They are then shipped from China (which can be a drag given the delivery delays) to one of their 250 m followers.

Such a business model obviously raises questions on sustainability, be it environmental or social, with the psychological impact it can have on teenagers and children.

The secretive Chinese brand dressing Gen Z