Explainer: What went wrong with Shein’s marketing campaign flying American fashion influencers to tour its China factory?

SINGAPORE: Six American fashion influencers who went on a trip to fast-fashion giant Shein’s factory in China have come under fire for posting videos praising the company, which has been accused of using forced labour and environmentally damaging practices. 

Social media users reacted to the videos with scepticism, with some calling them “propaganda” and describing them as painting an overly rosy view of the factory.

Shein has become extremely popular among Gen Zers and millennials due to the large volume of clothing types available — all at low prices. 

For instance, cotton tank tops for women cost as low as S$4 (US$3), while a polyester maxi dress could cost S$13. 

This makes it easy for young people to try out different styles without breaking the bank.

However, Shein’s manufacturing process has also raised concerns among a different group of youths who point out that its business model is detrimental to the environment.

Questions have also been raised about its labour standards, with several reports in 2022 revealing the company’s track record of human rights violations. 

TODAY takes a closer look at why Shein’s influencer marketing campaign went wrong and what could have been done instead. 

WHAT IS SHEIN?

Describing itself as a global fashion and lifestyle e-retailer “committed to making the beauty of fashion accessible to all”, the company employs around 10,000 employees worldwide and ships to over 150 countries. 

Founded in Nanjing, China, in 2008, Shein is currently headquartered in Singapore with factories in China. 

Over the past four years, its popularity and revenue surged, jumping from a 12 per cent share of the United States fast-fashion sales in early 2020 to 50 per cent as of November 2022.

Its rise, in tandem with the rise of e-commerce due to the COVID-19 pandemic, was also propelled by its marketing tactics.

These involve paid partnerships with social media influencers, who post “haul videos” showing off their purchases from the brand on TikTok and YouTube. 

However, over the past year, the company has been embroiled in allegations of unethical manufacturing practices as well as an unsustainable business model. 

For instance, a British news channel investigation in 2022 found some of its workers were illegally working more than 18 hours a day to keep up with the volume of production. 

According to fashion sustainability report Synthetics Anonymous 2.0, Shein’s rapid use of virgin polyester and large consumption of oil churns out the same amount of carbon dioxide as around 180 coal-fired power plants. 

WHAT WENT WRONG?

Though such allegations have not stemmed its immense popularity, people did not take Shein’s recent marketing campaign well.

The company has been seeking goodwill in recent months as it is expected to file for an initial public offering as early as 2024.

As part of its efforts, Shein flew six content creators to China, where they visited one of the company’s factories in Guangzhou. 

They then uploaded videos about the experience, talking about how clean and technologically advanced the factories were, but were criticised by social media users instead for spreading “propaganda” about the brand. 

Associate Professor Seshan Ramaswami, who teaches marketing at the Singapore Management University, told TODAY that Shein’s strategy in using fashion influencers is understandable given its target market of young shoppers. 

However, these are not the kinds of influencers who would be perceived as the most credible in answering the serious charges about the company’s labour practices, he said. 

Associate Professor Ang Swee Hoon from the National University of Singapore business school added that such factory visits can be orchestrated.

“Hence, posts by influencers would have lost credibility if readers believe that the factory visits and employee interviews were staged,” she said. 

Calling it a “publicity stunt gone wrong”, Assoc Prof Ang added that the influencers may have been paid handsomely in cash or in kind, affecting what they write about Shein.

Dr Dianna Chang, a senior lecturer of marketing at the Singapore University of Social Sciences, said: “Because it’s a sponsored trip, it is expected that the brand would show the positive sides of stories, like what we could do when we invite people to our houses as guests.”