Please excuse the dramatic title for this post. As it currently stands there is as much chance of Mr Trump & Ms Swift collaborating together, as hell freezing over. (Although that does seem more likely than it did a month ago! )
The point is that if you want to curtail the ultra-fast fashion machine, namely Shein, it has to be done by suppressing the demand, which in turn will slow the supply, hopefully to a halt.
And for all their good and bad points we do need to have on board a Mr Trump and a Taylor Swift! We need powerful and influential figures. Let me explain…
Whilst a large part of the attraction of Shein to its millions of customers is low price. It isn’t everything.
Its wider proposition is to make the latest fashions quickly accessible to everyone. To do this it has developed a unique on-demand business model that reacts dynamically to latest trends and competitor best sellers. This is supported by a complex and layered manufacturing network delivering fast products at low cost.
So the attractive proposition; what fuels the unbelievable demand for Shein products is the ‘excellent value’ it represents. Excellent value of low prices and dynamic fashion trends. Excellent value = fashionability/price
The thing is that this type of proposition is wafer-thin on margins for error, in terms of either price or fashionability. Enter President Trump.
Amongst the initial turmoil of his 1st month of presidency, and his scattergun approach to policy, one decision has large repercussions for Shein in the US.
President Donald Trump’s administration are planning on closing the “de minimis” duty exemption that allows imports valued under $800 (£645) to enter the country duty-free.
Shein is notorious for separating orders and multiplying individual packages to ensure that packages stay under the limits, acquire no tariffs, and gain quick access into the US. They don’t break any rules, but they certainly take full advantage of current customs policy.
Estimates say that this means an ‘eye-watering’ 1 million Shein packages per day enter into the US, tax free. Not any more!
And to add to Shein’s tariff woes, the European Commission has also urged EU lawmakers to phase out its exemption on customs duties for parcels under €150 to tackle what it called “dangerous products” flooding the market. You know who…
Shein rightly claim that they do not rely on customs policy to be successful. But either an increase in prices passed on to its highly-price sensitive customers, or a reduction in Shein’s operating margins, will potentially have an serious impact on the profitability of their business model.
So, in terms of our customer value proposition of value=fashionability/price, the excellent value of Shein could slip to just good value in its customers eyes and demand will fall.
Despite this Shein will still be popular. The problem is that its customer base is generally unaware or unconcerned about the nightmare materials that their clothes are made from, the impact their purchases are having on the planet, or its alleged use of slave labour, and its workers’ rights and conditions.
Enter then Taylor Swift. That’s Taylor Swift with her 549 million Instagram followers. That’s the population of the US and enough left over for half of Europe as well.
That’s also Taylor Swift who’s concerts in the UK last year were the largest driver of fashion footfall and buying trends and volumes in the UK last year. Purchases of cowboy boots and sequined clothing entered the stratosphere.
What Taylor Swift says matters to your average Shein customer.
She could tell them about the product quality of Shein, she could tell them about environmental damage, she could lecture them on workers rights, but to be frank she just has to say ‘Shein is not cool. Don’t wear it!’
Now our value equation looks very different indeed: value=fashionability/price. Our price has gone up and now our fashion desirability has gone down significantly, depending on the Taylor Swift effect, or that of any other mega influencer.
Shein value=fashionability/price, is hitting rock bottom
The big message here, is that as always, success is defined by supply & demand. Suppress demand and the supply will dry up.
Secondly, that to suppress demand it is almost impossible to do this in fashion (and many other things) with common sense and factually correct data.
Thirdly. It needs just a few decisive actions from a few very influential people to suppress & collapse demand.
Those people can be polar opposites, in their politics, their lifestyles, their motives, and their singing abilities.
They just need to be united in a desire to see the end of Shein.
Will it ever happen..?