Shein pop-ups are worrying for independent fashion retailers

Fast fashion giant, Shein, hit the headlines once again to announce the introduction of around 30 pop-up shops located in major cities across the UK, offering a variety of clothing items, accessories, and homewares that were traditionally sold via its popular online store. However, despite its widespread popularity among people between the ages of 18 to 40, it has been at the centre of many controversies; earlier in May of this year, there were claims that the brand was using forced labour from Uyghurs, Xinjiang, to make their clothing. This led to US lawmakers calling on the brand to be investigated on these claims. The World Trade Organisation reported that in 2020, China held the biggest share of the global textile exporting market at 43.5%, dwarfing the European Union’s (18.1%), India’s (4.2%), Turkey’s (3.3%), and the United States’ (3.2%). The detrimental impacts of fast fashion are well known at this point, from polyester pollution to the unfair exploitation of vulnerable people, yet it is still the most lucrative type of fashion out there. While it experienced a temporary 12.32% stall for total revenue of £23bn over the pandemic, fast fashion in 2023 is expected to bounce back to £28bn in revenue, according to GlobeNewswire. Josh Herbert, founder of Captain Creps, says: “Parting ways with fast fashion isn’t just about making a statement, it’s about making a difference. When we choose sustainable clothing, we’re investing in the longevity of our wardrobe and the health of our planet. “Each eco-friendly choice we make sends a powerful message to the industry that the era of disposable, exploitative fashion is over. It’s time we all step up and embrace alternatives that value both people and the planet.” Shein also poses a threat to independent boutiques and designers of clothing – from well-known fashion houses to niche creators – for plagiarising designs for clothing. Yet again in May 2023, Italian designer Giuliano Calza accused the company of blatantly ripping off his GCDS Morso heels from his Fall/Winter 2022 collection. The company has been involved in a long list of copyright infringement cases in the past, with independent designer Mariama Diallo also calling out plagiarism of her dress in January 2023. While Shein is the biggest offender as a fast fashion brand, PrettyLittleThing, Primark and Asos are also known for making cheap dupes of existing designs. They are also among the most mentioned brands on Instagram in the UK, according to analytics platform HypeAuditor, despite consumers rightfully having mounting concerns on their environmental impact. What’s more, Shein poses a threat for independent fashion retailers because they have numerous active paid collaborations with influencers and content creators – all of which act as advertising for potential shoppers, and so encouraging the cycle of buying fast fashion. HypeAuditor’s latest report on the role content creators play in amplifying fast fashion brands on Instagram also shows how their presence on social media boosts their sales and presence in consumers’ minds. According to this report, posts published by influencers naming the likes of Shein and PrettyLittleThing have an average engagement rate 15 times higher than the retailers’ own posts. According to the analytics platform, this means that when influencers mention and promote a brand on their accounts, it generates a higher level of interaction in the number of likes, comments, and shares from their followers and the wider audience. The impact partnerships with influencers can have for businesses are huge, with the influencer industry reaching $16.4bn (£12.7bn) in 2022, according to the Harvard Business Review. However, this also makes it much harder for small businesses to compete with conglomerates, which according to the same source, more than 75% of big labels have a dedicated budget for influencer marketing. When people are not buying new clothing, UK consumers are twice as likely to shop for fashion on preloved platforms (20%) rather than on social media (11%), according to data gathered from over 1,000 UK shoppers by shopper loyalty solution True Fit. This development was most likely born out of increasingly sustainably-minded and cost-conscious consumerism. Sarah Curran, global chief marketing officer at True Fit, says: “Second-hand is fast becoming first-choice for many consumers who seek to consume fashion in a more mindful way. This provides retailers with a tangible opportunity to acquire new cohorts or audiences who might experience their brand first in a pre-loved format, having not considered the brand previously. “The challenge then lies in bringing them back to the brand again to explore current collections or encourage repeat-custom within the retailer’s existing portfolio or product catalogue.” She adds: “We’re also seeing the green imperative now evolving the services consumers expect from retailers, with repair and rental indexing highly amid these new expectations, as well as the trend towards the ‘slow fashion’ movement gathering pace.” Depop reported that 90% of its active users are under the age of 26, meaning that Gen Z are the most likely demographic to buy and sell pre-owned clothing. Seeing how fast fashion is recovering at speed since the pandemic and how pre-loved fashion is still having its moment, it’s a polarising time for fashion retailers – and where do you fit if you’re neither fast fashion nor reputable vintage?