A young woman of 25 scrolls through her social media for inspiration for an upcoming tech award ceremony. All she desires are a Chanel tweed jacket, a shiny Valentino bag, and Manolo Blahnik pumps, but all she can afford are imitations of cheaply available on Shein.
Since her desires are far beyond her means, the woman searches for similar items and immediately she' with a wave of similar items with options from Shein, Temu, Pretty Little Thing, and even the TikTok Shop.
Online fashion retailers have seen significant growth in recent years, fueled by rapid digital transformation.
Shein, a global online retailer was downloaded 238 million times in 2023, making it the most downloaded fashion app of that year according to Statista.
But many have questioned whether Shein is a scam and if it's safe to use.
This article will explore the legitimacy of Shein and how the online shopping platform impacts user safety and personal data.
What is Shein?
Shein is a global online retailer platform that sells fashion and lifestyle products. Chris Xu, a Chinese entrepreneur founded the company in Nanjing, China, in October 2008 as ZZKKO.
The fashion retailer has grown to become one of the world's largest fast-fashion retailers and is popular with millions of consumers.
Despite surpassing established giants like Nike, Adidas, Zara, and Macy's in online searches and sales as reported by Money.co.uk, Shein's rapid growth has come with significant challenges. The company has been criticized for human rights violations and an environmentally damaging model.
The Chinese online fast-fashion retailer also leverages technology to optimize its operations and meet the demands of consumer trends.
Shein, like many retailers today, has adopted a data-driven approach to swiftly identify trends and produce these trendy styles at a massive scale.Their supply chain is highly efficient, with short lead times between design and production.
The company employs social media marketing and influencer partnerships to engage with its target audience and drive sales, demonstrating how technology plays a key role in their success.
This article will explore the legitimacy of Shein and how the online shopping platform uses consumer data to expand operations.
Is Shein Safe?
Shein is a legitimate business that allows its customers to safely purchase lifestyle products from its website and mobile application.
While it's a legitimate business, many have voiced concerns over production, environmental issues, human rights violations, and data breaches.
Foley reported in June this year that the New York Attorney General (“NYAG”) fined Shein Distribution Corporation, $1.9 million for failing to properly handle a data breach in late 2022.
“Hackers attacked SHEIN and stole the credit card and personal information of nearly 40 million SHEIN customers.”
The fast-fashion company was fined for mishandling a data breach that exposed the personal information of millions of customers. It was also accused of misleading customers about the extent of the breach and was ordered to implement stricter data security measures.
This is why the data collection approach of a rapidly growing company like Shein has been questioned lately.
Cisco's 2021 study about consumer confidence found that nearly half of consumers, 46%, do not feel they can effectively protect their personal data. Consumers are concerned about their personal data being misused or compromised.
With the vast amount of data Shein collects, including customer information, purchase history, and browsing behavior, there is a heightened risk of data breaches or unauthorized access.
Additionally, the company's rapid expansion and global operations may make it difficult to ensure consistent data protection standards across all regions.
How Does Shein Use Customer Data?
Shein uses customer data to enhance the shopping experience for customers by translating it into its production strategy. It scrutinizes customer purchase history, browsing behavior, and preferences so Shein can tailor its product options.
The data-driven approach allows the company to spot emerging trends, anticipate demand, and allocate resources accordingly and effectively.
The Chinese fashion retailer also uses customer data to personalize marketing campaigns, delivering targeted advertisements and promotions that increase customer engagement and loyalty.
Times magazine reported in January 2023 that Shein has poured millions into Google and Facebook campaigns, advertisement deals, and even a social media reality show co-hosted by Khloé Kardashian.
Shein's marketing strategy is multifaceted and aggressive with major investments expanding to influencer partnerships. Countless micro-celebrities, fashion bloggers, and reality show contestants have been enlisted to showcase their Shein hauls, creating a viral sensation.
This strategy has been particularly effective, as evidently depicted in the company's reports of collaboration with approximately 2,000 Indian influencers alone before the app's ban in 2020.
In 2021, the Daily Mail reported that Shein tracks how consumers arrive at the site, including search terms that send them there, the pages they view and in which order, the time they spend on each page, and which images they click on.
How Shein Uses AI?
Shein uses AI to manage its supply chain demands in real-time and automate tasks accordingly. The fashion company also says that AI is being used to solve labour issues and the environmental impact of fast fashion.
For instance, Shein leverages AI to scan for demands of particular styles and trends and manufactures these high-in-demand products but in smaller batches. This reduces the overbearing workload of its employees, a practice it has been criticised for.
Peter Pernot-Day, Shein’s head of global strategy and corporate affairs said at a retail conference in Berlin earlier this year that over 5k Shein suppliers now use AI software platforms to analyse customer preferences. According to the Times, these companies use the information provided by AI software to manufacture small batches of merchandise to match supply in real-time.
“We are using machine-learning (ML) technologies to accurately predict demand in a way we think is cutting-edge,” says Peter Pernot-Day. “The net effect of this is reducing inventory waste.”
Read: New Machine Learning Model Spots Real-Time Fake News With 69% Accuracy
How to Delete Shein Account?
Deleting a Shein user account mandates users to contact Shein’s customer service. Customer support assists users with the process and removes all personal information from their system.
Shein says upon deleting an account, users will lose all data and content in their account, including communication records, files, and images. They will not be able to access their account to browse SHEIN's website and make purchases.
Here’s how to delete your Shein account if you’re based in the EU, UK, or USA:
- Log in to your Shein account and go to My Account
- Click ‘Account Security’
- Click ‘Delete Account’
For customers outside of the EU, UK, or USA, contact customer service by locating it in the ‘Contact US’ section of your account.
