Shein ecommerce - evolution of fast fashion

5 Ways Shein Ecommerce is Leading the Evolution of Fast Fashion

If someone asked you what the world’s most popular fashion brand is in 2025, you might cite iconic brands like Chanel, Nike, or Adidas. These brands have global name recognition and have been around for decades, even centuries (well, one century, but that’s still a long time).

It makes sense to name popular brands like these, but despite their retail dominance, name recognition, and longevity, none of these are the one, the top fashion brand. At least, not according to Time Magazine. The coveted honor of “most popular fashion brand” in 2025, according to Time, is Shein.

Launched in 2008 by U.S. born Chris Xu, Shein’s sales soared from $10 billion to $100 billion in just two years. Those two years, however, weren’t normal. Shein’s sales exploded between 2020 and 2022, a time when bricks and mortar stores were closed to foot traffic thanks to a global virus that had us all hunkering down and migrating all our shopping to online channels.

Today, Shein connects over 6,000 clothing factories directly to consumers through its AI-powered platform. The company releases up to 10,000 new styles daily using a direct-to-consumer model that leans into personalization across the entire buying journey. Now, that’s the language we speak. Here’s a deeper look at five of the strategies that have helped catapult Shein to the top of the ecommerce ecosystem.

1. Hyper-Focused on Data-Driven Design

Shein’s approach to fashion design starts with data. The company’s proprietary AI software analyzes real-time customer behavior, social media trends, and purchase patterns. It uses this information to predict which styles will be a hit with shoppers, effectively spotting emerging trends faster than traditional retailers, who typically plan collections months in advance.

The technology powering Shein’s design process, while ideal for trend spotting, goes way beyond predictive analytics. Their large-scale automated test and reorder (LATR) model uses machine learning algorithms to analyze the performance of new products, with initial production runs of just 100-200 pieces. The system monitors customer engagement, sales velocity, and social media mentions to determine which items should be mass-produced and which should be discontinued. It’s personalization at the product level, not just the marketing level, and it’s been an instrumental ingredient to Shein’s success.

2. Agile Supply Chain Management

Shein’s tech-forward approach makes it possible for the retailer to release between 2,000 to 10,000 new items daily. This is far more than traditional fast-fashion retailers like H&M and Zara that launch about 4,500 new products annually. Letting data drive design decisions, minimizes inventory risk while maximizing the big wins—the pieces that customers love (and are likely to buy).

Shein’s ability to offer new designs in response to the changing whims of its fashion-conscious customers, makes the company incredibly competitive. The more traditional approach, even with fast fashion retailers like Zara, requires months of planning and large production runs. By comparison, Shein’s network of thousands of manufacturers can pivot production in near real-time.

They test the small batch items we noted above, and scale production for the items that are already trending or selling well. This has two key benefits: it reduces warehouse storage costs and minimizes dead stock. Personalizing item production based on trends and consumer demand, then testing in small batches, works in reverse too. It means less popular items can be discontinued before significant resources are invested.

3. Mastering Digital Marketing 

Shein embraces influencer marketing on social platforms like TikTok and YouTube and this has been a key component to the company’s name recognition and overall success. The company partners with thousands of content creators—from micro-influencers to reality show contestants—to promote its brand and its products.

These creators post “haul” videos showcasing massive purchases and often receive commissions for sales. Thanks to the generous use of hashtags like #shein and #sheinhaul, the videos generate billions of views. They’ve helped Shein capture the attention of Gen Z shoppers and (young)  millennials, and audience that ranges from ages 18-44, who make up nearly 70% of the retailer’s customer base.

Shein also relies on its app to keep customers engaged and interested. They use gamification elements like rewards for purchases and reviews, entice users with incredibly compelling flash sales (up to 80% off), and tempt first-time shoppers with steep discounts. They’re not afraid to push the limits when it comes to reaching out to their customers, sending up to 10 push notifications per day.

The combination of influencer partnerships, app-based engagement, perpetually changing inventory, and low prices is powerful. It’s turned Shein into an effective digital marketing engine that keeps shoppers coming back.

4. Affordable and Accessible Fashion

While the above strategies are clearly part of why Shein has risen to the top of the popularity list, as least as far as Time Magazine is concerned, Shein’s success is also about offering trendy items at incredibly low prices.

The low-price points keep Shein’s clothes accessible to a global audience—one that traditional retailers have largely overlooked. An average item from Shein costs around $10, putting stylish and trendy clothing within reach of their fashion-conscious global trend setters.  

Their dynamic (read: personalized) pricing approach caters to the individual, with offers customized based on what a given customer responds most to (flash sales, shopper discounts, reward points, etc.). Shein’s ecommerce-first approach demolishes the traditional geographical barriers that once limited fashion accessibility.

They serve customers in more than 150 countries, dispensing with the luxury-brand strategy that focuses on high prices and limited distribution. Instead, the company makes style available to everyone. A teenager in Brazil can access the same trends as someone in Paris or Tokyo, at prices that work with their budget. 

5. Evolving Toward Sustainability

Despite its massive success, Shein faces mounting criticism over its environmental impact, nearly doubling its carbon dioxide emissions between 2022 and 2023. But the company is trying to change this.

In response to the discontent around unsustainability, Shein announced a $7.6 million partnership with the Apparel Impact Institute, aiming to reduce supply chain emissions by 25% by 2030.

While skeptics might view initiatives like this as greenwashing, Shein’s on-demand production model actually helps reduce unsold inventory waste compared to traditional retailers. The company claims its small-batch testing approach means fewer clothes end up in landfills. 

However, with the fashion industry responsible for releasing more than 10% of global carbon emissions, [JD3] Shein’s commitment to sustainability will need to extend beyond modest improvements. As environmental regulations tighten, particularly in the EU where the company faces increased scrutiny, Shein’s continued success may depend on balancing its fast-fashion model with genuine environmental responsibility.

Actionable Learnings from the Shein Ecommerce Business Model

Shein’s meteoric rise to success offers retailers a masterclass in how data-driven personalization can revolutionize ecommerce. Personalization is at the heart of Shein’s strategy. Their focus remains on connecting customers to items they love at prices they can afford. A robust personalization platform like Monetate can facilitate a Shein-like strategy by:

  • Analyzing real-time customer behavior and preferences to predict trends and inform product decisions, similar to Shein’s LATR model
  • Testing and optimizing the digital experience continuously through A/B testing and AI-driven experimentation
  • Delivering one-to-one personalized product recommendations and customized search results that adapt to each customer’s unique journey
  • Scaling personalization efforts to every single customer across multiple channels while maintaining consistent experiences

As Shein continues its tech-first approach, the company will likely keep shaping ecommerce trends and shopper expectations. Their data-driven model has fundamentally changed everything connected to digital shopping including how products are produced, the experiences customers expect, price points, choice, and global accessibility.

Your ability to harness customer data and deliver tailored experiences at scale is the best way to compete with Shein, but you have another card to play as well.

Focusing on sustainability and demonstrating a real commitment to consumer safety and the environment, can help you compete with companies like Shein.

Learn More About Retail Personalization