Shein is invading the world’s fashion capital (apologies, NYC and Milan).
What happened: Shein, the Chinese online fast fashion giant, is opening its first-ever brick-and-mortar store in Paris next month. It will set up shops within locations of popular French department stores and soon expand the idea to five other French cities.
- The company told the BBC that France’s “influential global fashion market" made it a “natural choice” for its test-run in the physical retail world.
Why it matters: Aside from a few one-time pop-up shops, Shein hasn’t strayed from hooking users in with its addictive app. As it continues to pursue an IPO, these shops will show if its products and cheap prices alone are enough to create another revenue stream.
Yes, but: The French care about fashion, and the announcement was met with swift backlash from retailers and consumers offended by Shein’s ultra-fast fashion business model and alleged use of forced labour. It’s part of wider pushback Shein has faced in France.
- The Senate passed legislation earlier this year to ban advertising for sellers like Shein, as well as implement new environmental taxes and product disclosures.
- France’s competition and anti-fraud office also hit Shein with a record €40 million fine after it found the company deceived users about prices and environmental impacts.
Bottom line: That said, not all shoppers (not even all French shoppers) share this high-mindedness about fashion, and if physical Shein stores work in Paris, they’ll likely work elsewhere.—QH