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Consumers' preferences, priorities, and values are reshaping industries.
Published April 8, 2021Last updated on April 27, 2021
If you’re not familiar with Shein, an online fast-fashion retailer based in China, odds are you’re not a teenage girl.
The company has attracted a young and growing fanbase with the constant deluge of trendy, inexpensive new clothes it releases online and through its app, as well as with its aggressive social-media marketing. It advertises heavily on platforms such as Facebook, maintains a network of influencers who promote it on TikTok and Instagram, and regularly reposts photos from customers to keep them sharing its clothes online. In the past year, celebrities such as Katy Perry and Lil Nas X have performed at events Shein streams to shoppers.
Whatever tensions exist between the US and Chinese governments, American shoppers are not shying away from the retailer. Shein has twice ranked second only to Amazon as the favorite shopping site of upper-income US teens in a biannual survey of US teens by Piper Sandler, an investment firm. In the most recent installment, which included some 7,000 American teenagers, 7% of upper-income teens picked Shein as their favorite website for shopping.
That’s well behind the 56% who chose Amazon. But Shein came in ahead of household names such as Nike and Urban Outfitters, and its share keeps growing. For the first time it also broke into the top-10 favorite clothing brands listed by teens.
Shein claims to release hundreds to thousands of new items daily, leveraging China’s fast manufacturing to offer a huge variety of styles at low prices. It sells clothes like halter tops and cropped tees for less than $10 and floral-print dresses for under $30.
It makes clothes for men and kids too, but women are its core audience. Its Instagram feed is almost exclusively women, frequently with bare midriffs. While customers sometimes complain online about late deliveries and poor quality, the issues haven’t scared shoppers away.
Shein was founded in 2008 by Chris Xu, described as an American-born-Chinese graduate of Washington University in a 2013 press release, when Shein was still going by its original name, Sheinside. (It changed the name in 2015.) A recent profile of Shein (paywall) in trade outlet Business of Fashion noted he also goes by Sky Xu or Yangtian Xu.
The privately owned company is notoriously opaque and provides little insight into its sales. But in a 2019 WeChat post, it said sales for the year reached 20 billion yuan (about $2.8 billion), the South China Morning Post reported. Last year, Chinese tech news site LatePost said Shein revealed in an internal meeting that sales had surpassed 40 billion yuan (link in Chinese). It also closed a funding round that valued it at more than $15 billion.
Despite being based in China, Shein’s focus is outside the country. It “mainly targets Europe, America, Australia, and the Middle East along with other consumer markets,” according to its site. In October, Reuters reported that Shein was now the biggest online-only fashion company in the world measured by sales of self-branded products, citing data from market-research firm Euromonitor.
The company’s lack of stores has perhaps been an advantage in the past year, when the pandemic shuttered shops around the world. While many fashion companies with large brick-and-mortar businesses suffered, sales at online retailers soared. Shein is among those that look set to capitalize on the pandemic’s supercharging of e-commerce, especially if US teens are any indication.
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Facts and figures to help you put this story in context.
Gen Z is the first generation to bypass traditional cultural gatekeepers. They are accustomed to defining their own tastes, trends, and values. That has major implications for the way this generation shops and spends, even as the coronavirus pandemic shifts the stakes.
40%: Percentage of global consumers made up by Gen Z, according to McKinsey & Company
$150 billion: Gen Z’s spending power in the US alone, according to the consulting firm 
45%: Number of US teens who now say that they are online “almost constantly,” according to a 2018 Pew Research Center survey.
70%: Number of teens who say that they use social media multiple times a day, compared to 34% in 2012, according to a 2018 Common Sense Media survey
Not so long ago, magazines, advertisers, and other media had a big role to play in shaping youth culture. But today, thanks to YouTube, Instagram, TikTok, and other social-media platforms, young people spend the bulk of their time with content created by their peers. That has big implications for the future of Gen Z’s consumer habits.
Teens may not be running for office or heading up Fortune 500 companies just yet. But social media has enabled them to exert an unprecedented amount of influence over one another—and, as a consequence, over companies, too. They’re using that influence to reshape the consumer landscape of the future, with attitudes toward the environment and gender identity that set them apart from their older peers. And companies are responding to their demands.
“Millennials use social media as a platform, but with Gen Z, it’s woven into the fabric of their very beings. They spend more time with online communities than they do with real-life friends. There is no separation between the online self and self. They are the first generation who create what they consume and consume what they create.”
The key to being successful on TikTok is to grab your audience’s attention—fast. For teenage chef and social media star Eitan Bernath, that means chucking various items over his shoulder. A coffee mug, say, or a package of Oreo cookies. An iPhone, once, when he was presumably feeling confident in his case of choice.
Having gotten his start in the food-media world at age 11 while competing on a kids-only episode of the Food Network show Chopped, Bernath’s success on TikTok seems to come down to a unique mix of cooking chops, business acumen, and a merrily frenetic style.
“The way most people go through the app, they’re just kind of scrolling,” he explains. “If it doesn’t catch their interest in the first five seconds, they’re not going to give the video a chance. So I try to do something in the first five seconds that grabs the audience’s attention.” This strategy has propelled him to an audience of more than 815,000 followers in just a few months.
Today’s young people have an unprecedented amount of power over the many companies hoping to court them—using their power to push companies forward on big social concerns. They include: 
Greenwashing refers to a company’s inaccurate claim that an investment, product, or program is sustainable or climate-friendly. “Gen Z is very in tune with ‘greenwashing’ and seeing when brands are just pretending or throwing out a little bit of a capsule collection but won’t do anything else,” says 20-year-old Maya Penn, an entrepreneur and animator who founded the eco-conscious clothing company Maya’s Ideas when she was just eight years old. 
Already, several brands have experienced the risks of greenwashing firsthand. H&M attracted unwanted attention in 2019 when it was grilled by Norwegian regulators over the marketing of its Conscious collection as sustainable. As Quartz’s Marc Bain has written, while the clothing in question was made from materials like recycled polyester or citrus peel, “its low-cost, high-volume business model is arguably at odds with its sustainability goals.”
That disconnect doesn’t sit well with Gen Z consumers, who are an inherently skeptical bunch when it comes to corporate intentions; and largely do not trust businesses to act in the best interests of societ
What impact will the coronavirus pandemic have on Gen Z?
The pandemic’s ultimate impact on young people is still uncertain. That said, historical evidence and psychological and economic research hint at a few possibilities as to how this crisis could impact young people in the years to come. Possibilities include: 
➡️ An already thrifty generation doubling down on prudent financial decisions,
➡️ Or, an increase in consumer spending after months of restrictions.
➡️ New and greater demands on governments and companies, 
➡️ Greater and more radical politicization, 
➡️ An increase in distrust of institutions and other people,
➡️ But perhaps also a greater appreciation for social safety nets.
➡️ More desire to fight inequality and racism,
➡️ And greater resilience to traumatic events becuase of what they have already weathered
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Consumers' preferences, priorities, and values are reshaping industries.
Does anyone stand a chance against Amazon?
In the US at least, the company has been gobbling up an increasing share of retail, and with Covid-19 pushing more shoppers online, Amazon has only gotten stronger. Once famous for prioritizing growth over profit, the company is now enjoying both. Meanwhile, US regulators fear Amazon is so dominant it should be regulated like a railroad.
Amazon still has tough competition though. Walmart, for one, remains much bigger, and its network of more than 5,000 US stores has proved to be an advantage during the pandemic.
2.3: Physical retail space per capita, in square meters, in the US
0.7: Physical retail space per capita, in square meters, in China
75%: Asia-Pacific region’s share of the world’s retail growth
81%: Share of e-commerce forecast to take place on phones in Asia-Pacific by 2023
43%: Share of e-commerce forecast to take place on phones in the US by 2023
$780 million: The approximate drop in market capitalization of AMC Entertainment, owner of the biggest theater chain in the world, between October 2019 and October 2020. The pandemic has shut theaters in huge numbers, hammering their operators’ profits. AMC, which operates more than 1,000 theaters across 15 countries, was hit so hard it has warned of the possibility of bankruptcy—and just in time for its centennial. The box office isn’t suffering everywhere though. While Hollywood idles, Japan’s movie market is breaking records.
Though Disney built its mouse house on parks and box-office hits, streaming looks to be its future. The company was already headed in that direction, but the pandemic accelerated things. Disney’s theatrical and theme park businesses have been devastated by the pandemic, and neither will recover to prior levels of profit anytime soon (if ever). Streaming, however, has remained the company’s lone bright spot: Disney+ attracted more than 60 million global subscribers less than a year after launching.
“By means of glasses, hotbeds, and hotwalls, very good grapes can be raised in Scotland, and very good wine too can be made of them at about thirty times the expense for which at least equally good can be brought from foreign countries. Would it be a reasonable law to prohibit the importation of all foreign wines, merely to encourage the making of claret and burgundy in Scotland?” —Adam Smith, The Wealth of Nations
Once the pandemic is over, will we still do all our shopping online?

From the first quarter of 2020 to the second, the US Census found e-commerce grew as much as it had in the past four years. Digital sales have similarly jumped in regions such as Asia, where online shopping was already more prevalent. Some of that growth will inevitably moderate, but experts believe more online shopping is just part of the new normal. Consumers are creatures of habit, and Covid-19 has forced big changes in those habits. Shoppers who never before bought items such as groceries, clothes, or workout equipment online are now doing so. At least some of that behavior is likely to stick.
Whether you treat yourself to a Louis Vuitton bag, a bottle of Hennessy, Dior shoes, skincare from Sephora, or a Tag Heuer watch, you’re feeding the pockets of this man: Bernard Arnault, CEO of LVMH, the world’s largest luxury group. Arnault’s empire includes a dizzying number of brands—75 in total across the group, with combined sales of more than $60 billion in 2019. Known as the “wolf in cashmere” because of his merciless business maneuvering, he built LVMH into the company it is today and led a lucrative shift in luxury that made it a commodity accessible to the global middle classes, not just the rich. He ranks among the wealthiest men in the world, and may soon have another jewel in his crown if LVMH’s pandemic-interrupted purchase of famed jeweler Tiffany is completed.
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The first item sold securely online was Ten Summoner’s Tales, a Sting CD, which was bought on Aug. 11, 1994 when the World Wide Web was in its infancy. While internet precursors had been used before to sell items—including, famously, a bag of weed sold by Stanford students to their counterparts at MIT—those sales were consummated in person. The CD purchase was the first transacted over the internet using a credit card, on Netmarket, one of the few dozen websites that then existed. From that $12.48 sale (plus shipping) was born a $3.46 trillion industry.
Would you invest in a handbag? You might if it was a Birkin, the much sought-after, iconic accessory made by Hermès that retail for as much as $200,000.

Unlike most consumer goods, there is a robust secondary market for Birkins, and they appreciate in value quickly. According to one analysis, Hermès bags increased in value 13% over 12 months, beating other collectibles like stamps, wine, and even fine art.
Where clothes are concerned, we’re buying more, spending less, and wearing items for shorter periods before discarding them. One way to slow the deluge of used clothing pouring into landfills every year, or at least extricate yourself from it a bit, is to buy more of your fashion used. Because of the internet, it’s never been easier to do so. The past decade has seen a flourishing of secondhand retailers, from online marketplaces to luxury resale sites that have drawn big brands like Gucci to participate.
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Raped, beaten and sold in China: Vietnam's kidnapped young brides
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More young girls from Vietnam are ending up in forced marriages in China, where the gender imbalance has created a demand for foreign brides, as Insight discovers.
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HANOI: Linh, a high school student, thought nothing of accepting a family friend’s casual invitation to visit the neighbouring district of Muong Khuong.
That family "friend" turned out to be a lying crook – he was in fact working for a human trafficking ring, and had taken a year to slowly befriend the 17-year-old.
En route to Muong Khuong, the teenager was kidnapped and brought to China, where she was forced to marry a stranger.
“If you are trafficked, of course you will be raped. Probably everyone was raped,” she recalled. 
“I became a wife there (in China). At that house, I had to obey everything they said or else I would be beaten. They beat me without fear because I am not Chinese.”
In the scenic rural highlands of northwestern Vietnam, girls like Linh, and as young as 13, have been disappearing from the remote villages at an alarming rate.
Kidnapped and sold to human traffickers, many of these young girls end up re-sold as brides in China, a country grappling with a gender imbalance in which men greatly outnumber women, as the programme Insight discovers. (Watch the episode here.)
Among the Hmong people of Vietnam, "wife snatching" is a relatively innocent age-old tradition, which has since taken an ominous turn with women now being kidnapped and sold as brides in China.
Vietnam and China share a long mountainous and porous border, which has made it easier for traffickers to snatch girls from the villages and move them across the border.
“There’s a lot of money in human trafficking. The people who sell girls can make tens of thousands of dollars on a sale,” pointed out Michael Brosowski, founder of Hanoi-based charity Blue Dragon Children’s Foundation which rescues Vietnamese trafficking victims.
Between 2012 and 2017, more than 3,000 people, mostly women and children, were trafficked, according to the Vietnamese Ministry of Public Security. But these are just the official figures - the number of unreported cases is widely thought to be significantly higher.
Caitlin Wiesen, country director of the United Nations Development Programme (UNDP), pointed out that Vietnam is known as a source country for labour exploitation, sexual exploitation and forced marriages.
Poverty in remote areas, low education levels and a lack of jobs have created an environment where women feel they need to go out and find work, she said. Some, lured by promises of jobs, end up being trafficked by unscrupulous agents.
And these agents, or traffickers, explained Brosowski, are willing to invest weeks and sometimes months in getting close to a victim, so that they can make that "sale".
There’s no typical profile of a trafficker; he or she can be anyone
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