Shein’s massive success is no accident and not just the result of a more innovative business model. The company’s exponential growth depends on the Chinese Communist Party (CCP) trade behavior, America’s De Minimis loophole, and U.S. hubris regarding the international tax code.
Secretive Shein’s success relies primarily on cheap deals for American consumers who don’t care how, where, or what quality of goods they order online. Shein learned to advertise through TikTok, reaping the benefits of its robust data collection. But even with those advantages, the company could not gain such vast market share and price advantages without operating exclusively from China under specialized trade and tax rules.
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