Shein Ethnography

Project

This research uses observations and interviews to gain audience insight through a mini-ethnography study. Shein is an eCommerce B2C platform catered to the international fast-fashion market. This year, it is valued at $100 billion — the third most valuable eCommerce company worldwide, as its products focus on women, men, and children. Though Shein has displayed financial success since its inception in 2012, the brand has faced tremendous consumer backlash. By conducting direct observation, field notes, interviews, focus groups, and social network analysis, Shein will benefit from the audience insight gained from this research. The goal of this research is to conclude strategies that enable Shein to remain competitive in the eCommerce ecosystem and simultaneously address social-ethical concerns in society. As supply chain shortage concerns lessen, consumer objectives will expand as consumers have more options threatening Shein’s business continuity.

The importance of conducting ethnographies aligns with the insights needed to understand consumer experience. Like the World of Warcraft ethnography published by the Wiley Online Library, Shein will also uncover dimensions of the self and how identities are assembled at a community level (Costa et al., 2015). The objective of this research is to investigate a narrow area of inquiry, mainly when time or monetary constraints are evident (Fusch et al., 2017). In this instance, Shein needs to understand the culture quickly, which a mini ethnographic study can help achieve.

Participants

The participants involved in this research are Generation Z. A community worth looking at as it relates to deep cultural connectedness is Depop. Depop broadly represents Generation Z consumers who are involved in TikTok trends. According to a study by Depop, 50% of their users make purchases based on social activism. 70% of user purchasing decisions are based on fair wages and safety awareness (Bain & Company, 2020). In-person interviews and consumer observations will support or counteract this data. Overall, this triangulation will articulate whether this cohort is interested in messages that appeal to and implement new ethical standards. According to data published this year, the US makes up 42.85% of the traffic and engagement (SimilarWeb, 2022) in the Shein community. The audience is 68.04% female based, and the largest group of visitors is between the ages of 25–34 (SimilarWeb, 2022). Shein users are interested in fashion and attend a university. Secondary interests include video games, news, and current events. The video game interest relates to the evidence suggested to the social communities and experiential communities concerning the self (Costa et al., 2015).

Social Networks

Most of the social networking attention received by Shein takes place on Facebook at 64.87%. Campaigns should address existing consumers on those platforms. Facebook users tend to engage in deep conversations on user threads. Generation Z is Shein’s biggest customer, but most of Generation Z is no longer on Facebook (Daxue, 2022). A new campaign strategy should strengthen other platforms like TikTok, Instagram, and Twitter. For this research, strategies should be implemented on Generation Z platforms.

The growing diversity and subcultures in the US have made the environment move into a more progressive learning model. Consumers understand how eCommerce operates - even overseas - due to the information consumers learn through data, social media, and journalism. Shein actively engages in harmful business practices such as employee exploitation, unsustainability, stolen designs, and poor-quality products. Given that most customers are in the US, it’s important to note the power distance index contrast between the US and China. According to Hofstede Insights, Chinese culture exhibits higher power distance than the US (Hofstede, 2022).

• “People in societies exhibiting a large degree of Power Distance accept a hierarchical order in which everybody has a place and needs no further justification.” (Hofstede, 2022)
• “People in societies with low Power Distance, people strive to equalize the distribution of power and demand justification for inequalities of power” (Hofstede, 2022)

The US displays a much lower power distance score. US culture is more likely to remain combative against harmful business practices. The American customer is more likely to strive for justification related to inequalities of power (Hofstede, 2022). An example of this is when a sustainable designer created her entire fashion show around the wastefulness of materials.

Overall, it is wise for Shein to develop a set of business practices that evolve with the American market, especially if the brand intends to keep them as its number one customer. One of Shein’s most notable moments was during the #sheinhaul trend via TikTok. This is where most of Shein’s consumer base operates. According to research published on this cohort, “70% of Generation Z believe they can be part of a social movement even if they only participate through social media” (Bain & Company, 2020). Given how likely consumers are to chime in due to social influence, Shein should focus on redirecting a positive theme with which this cohort can associate and leave fewer reasons to mention the brand negatively.

Fieldwork

Using different methods encourages triangulation throughout the ethnography, provides a more in-depth analysis, and addresses bias issues (Reeves et al., 2013). The best way to incorporate blended triangulation efforts is to pursue method and investigator triangulation. Another fieldwork component is establishing a methodology addressing where, how, and why the fieldwork will be approached this way (Katsigianni, 2021). The researcher should take proper field notes during observation using the above methods. These field notes help align themes found across the different areas of research.

Where: In-Person Passive Participant Observations

• Direct observation of competitor US stores that have brick-and-mortar shops: Forever 21, Zara, Hollister, etc., to help identify purchase decision-making processes of female customers
• Attend sustainable fashion meetups and observe conversations
• Direct observation of in-person stores at sustainable brands: Buffalo Exchange and Plato’s Closet
• Focus Group 1: people from each of the above scenarios with differing views
• Focus group 2: a fresh set of people new to the conversation

Examples of Interview Questions:

• What is your opinion on fast fashion?

• What are some of your favorite brands?

• What do you like or dislike the most about certain brands?

• How often do you come in person to shop?

• What are the best things about the in-person experience?

Social Network Analysis

• Online social networking platforms: follow Reddit and Discord chats dedicated to Generation Z and have long conversations about fashion

• Direct Competitor analysis: review comments and engagement of the Shein community and compare them to competitors

• Social network analysis: review sustainable consumer conversations outside of the fast — fashion community to better understand the culture

How: field notes in each setting, investigator triangulation: use different researchers in every the setting, a topic-based organization to draw themes

Why: can online eCommerce brands learn things from the in-person environment? Do the observations align with this cohort’s online “self”?

Analysis and Reporting

The following are the positive and negative themes associated with Shein based on consumer interactions (Zhou, 2022). The products and social network experience produce a prevalent theme. The two extremes represent a causality based on the achievements the brand has established:

• Positive Themes: affordability, notoriety: more Tik Tok unboxing hauls compared to competitors, availability: more inventory than competitors, competitive: Shein stands out in the ultra-fast fashion landscape: Fashion Nova, Boohoo, PrettyLittleThing, and Cider, Generation Z (age 9–24) focus obtained, successful data-driven model

• Negative Themes: poor quality, unsustainable, employee exploitation: overworking and underpaying staff, child labor claims, materials: most items are made of polyester, “ultra-fast fashion” category, stolen designs, lack of creativity because of being too data-driven

Shein needs to make more efforts to address this gap in its business efforts. Consumers are looking for accountability and hoping for change. At a $100 billion valuation, Shein has acquired enough capital to change its practices. For example, Burger King tweaked its product ingredients to address health concerns (Dominko, 2021). Despite inflation and unlike competitors, Burger King sales increased by 10% in the first quarter of the year. American consumers respect brands that make efforts to change unethical practices. The following suggestion is based on the consumer feedback to address these issues — implement standards that do not exploit staff, source better materials / promote sustainability, utilize fit models to create products that fit consumers properly, embrace individuality, and create original products.

• Concept: “Be patient. All great things take time.”
• Actions: First, hire local fashion designers who exhibit creativity and encourage time to create unique ideas with live models. This will show that Shein is changing its manufacturing methods and not mass-producing ill-fitting garments. This concept is not exploitative as it appreciates the people committed to this role. Second, diverse higher practices, including younger and older cohorts, should be implemented. Extreme unethical labor practices have existed for a very long time. Many older designers needed help to express their unique design concepts due to the sweatshop-style work environment. “All great things take time” connects to the experience many of these people have had, and though it is pretty sad, it is respectful of their contribution. This concept would be appealing to the American consumer. The vision for this idea is that it’s done in a way where Shein takes accountability for its toxic contribution to this environment and commits to never going back to this. This commercial should be done in a way that highlights the significant changes to which Shein is pledging commitments. Avoid greenwashing, implement actionable ethical obligations, and not portray content that leads to false impressions (Solomon, 2020).
• Threats: Changing the brand reputation and staying committed to these efforts is difficult. If Shein takes too long to implement new strategies; competitors like Fashion Nova or Boohoo may commit to changes first, and Shein will again look like a brand that makes imitation clothing and have unoriginal business insight.

Management and Ethical Challenges

Shein has serious ethical concerns that are brought up on social media. It’s essential to understand how things are perceived by customers. Specific conversations in focus groups may enlighten researchers on how Generation Z views retailers that have also experienced major cultural setbacks. Victoria’s Secret and Abercrombie have also experienced central public relations and cultural problems in the US. An ethnography can influence a conversation around these issues. Researchers can understand if rebranding efforts are perceived well in these focus groups and interviews. Some key takeaways can be addressed in these groups. Do marketers promise miracles: does this product make me feel better about myself? Do marketers create artificial needs: what is better about this item that makes me think I need to make this purchase? Based on the participant’s conversations, were competitor efforts to address its blunders perceived well? Which brands are doing well at addressing these issues, and who is not?

The Bread Exam Case Study by McCann Paris is an awareness campaign to shed light on the importance of women’s health. This campaign utilized a specific cultural activity and was executed gracefully without appearing offensive. Shein marketers should follow in the footsteps of such campaigns to understand the sensitivity within other cultures. It is very challenging to create an ecosystem where brand mission, brand actions, and international cultural values perfectly align. However, when executed well, consumers are likelier to remain loyal to the brand.

Planning Private Sector Ethnographies Takeaways

Given the growing eCommerce market, a social network analysis component supports ethnographic efforts and can undoubtedly strengthen consumer insights. However, the disadvantage of social network analysis is the mystery of online interactions. In-person studies bring transparent member involvement and encourage deep conversations and insights. Ethnographic disadvantages, such as in-person interviews and observations, can lead to researcher bias. Member checking, data saturation, and interview protocol help mitigate this personal lens in the data collection (Fusch et al., 2017). Unlike social network analysis, in-person observation allows researchers to analyze body language and tone of voice. Ethnographies help brands better understand how timing affects the acts, actions, and events consumers partake in. For Shein, it is essential to review the fieldwork conducted through in-person observations. Researchers can understand the temptations that exist for consumers. Do the temptations that exist in person and online correlate? How can Shein not cross an ethical boundary here and promote its brand differently?

The Dimensions of National Culture by Geert Hofstede

When addressing the planning stages as an ethnographic researcher, the cognitive learning theory facilitates this process. The purpose of an ethnography is to investigate the behavioral and mental processes that consumers go through. As a Chinese-based manufacturer with an international consumer base, the brand should take note of the social network analysis process. This strategy informs researchers of the dimensions of national culture. As an international brand, this is important for Shein as the brand distinguishes countries’ cultural demands. Social network analysis can inform marketers regarding Hofstede’s model of national culture, which consists of six cultural dimensions (Hofstede, 2022).

During the pandemic, American consumers were more likely to shop online through eCommerce brands that met needs quickly. Before supply chain issues emerged, American culture had grown comfortable with the convenience that eCommerce brands traditionally fulfilled. In this context, the fundamental issue was the scarcity Americans needed to become more familiar with and how the culture shift changed to find eCommerce brands that could fulfill this need. During a time of uncertainty in which most felt uncomfortable, American culture exhibited a strong uncertainty avoidance index where it has become rigid in those expectations. Due to Shein’s ability to meet the needs of consumers, Americans, and other international consumers enabled them to maintain their behaviors and expectations related to the world of fast fashion.

An important takeaway from this scenario is how Shein’s success related to the individualist framework consumers felt during a desperate time. The pandemic scare identified when individuals were expected to care for themselves and their families (Hofstede, 2022). Once the consumer mentality shifts and the culture no longer feels this desperation, society’s position will move toward the “we” dimension. As Hofstede mentions “collectivism represents the framework in a society where individuals expect members of a group to look after them in exchange for unquestioning loyalty.” As Shein continues to receive attacks for lack of sustainability and ethical standards, consumers will begin to identify with specific cultural movements. This is when collectivism shifts back into the culture, and brands that face significant cultural backlash will continue to face problems as consumers establish unquestioning loyalty to specific social movements. This is especially important to note for audience insights, considering most people mimic others’ behaviors as a social default (Solomon, 2020). Shein has significantly benefited from the conditions consumers faced during the pandemic. The two conditions contributed to the success of Shein’s business model due to the timing of the pandemic. First, the stay-at-home environment encouraged consumers to buy more e-commerce to avoid exposure to outside elements. Second, the pandemic raised uncertainty related to the job market and urged consumers to purchase cheap items. Shein uses very cheap materials to construct garments (Williams, 2022)

An immediate takeaway from this research is the importance of online reputation. Many participants feel disconnected from the ethical standards at which Shein operates, and most consumers look for brand integrity when making purchasing decisions (Solomon, 2020).

The opposing themes associated with the Shein brand are a direct result of the brand’s most positive attributes. The speed at which Shein operates is due to the brand’s lack of concern for the environment, creativity, and treatment of employees. The challenge for Shein is to remain successful online and convey trust in its brand. To properly gauge the international consumer, Shein must receive help from outsourced marketing professionals. This service will provide excellent resources that ensure personal, visual, and engaging content that matches Shein’s new ethical commitment.

Another suggestion for Shein is collaborating with ethical groups and representing the brand within this space. Groups such as The Sustainable Fashion Alliance and other global initiatives can help educate Shein on the importance of this movement. From a consumer perspective, Shein’s membership would show effort and encourage a positive reaction from the customer base. Generation Z is such a social network-driven culture. The dimensions of self in online communities relate to Shein’s culture (Costa et al., 2015). Consumers’ online identity shows the world how they want to be perceived by others. Cohorts are often influenced by those around them, which leads to a conflict between their shopping actions and their ethical concerns with fast fashion. Though some shoppers may engage in fast fashion shopping habits, this cohort is also influenced by those around them and is a crucial insight for the Shein brand. Shein’s understanding of Generation Z can help bridge this conflict that consumers feel. There are many “self” identities within the online space. The influencer theme takes on many roles as they struggle to remain relevant by partaking in “newness” or appearing innovative and their wish to stay ethical.

The eCommerce shopper presents a conundrum that is quite controversial. This research looks at the psychological reasons why consumers engage in shopping behaviors. It touches on complex topics, such as what a consumer says compared to what they do. When brands better understand their consumers and this internal conflict, they can better offer better products and services to this cohort.

References

Bain & Company. 2020. Introduction | Depop Gen Z Report. Depop. (2020). https://depopxbainreport.depop.com.

Costa Pinto, D., Reale, G., Segabinazzi, R., & Vargas Rossi, C. A. (2015). Online identity construction: How Gamers Redefine Their Identity In Experiential Communities. Journal of Consumer Behaviour, 14(6), 399–409. doi:10.1002/cb.1556

Daxue Consulting. Shein’s market strategy is conquering the West. Market Research China. (2022). https://daxueconsulting.com/shein-market-strategy/

Fusch, P. I., Fusch, G. E., & Ness, L. R. (2017) How to conduct a mini-ethnographic case study: A guide for novice researchers.

Hofstede Insights (2022). National Culture. https://hi.hofstede-insights.com/national-culture

Katsigianni, C. (2021). The Five Observer Roles in Ethnography. Research Design Review.

McCann Paris (2021). The Bread Exam — Case Study. YouTube. https://www.youtube.com/watch?v=D3q5nUbWQRQ

SimilarWeb. (2022). Shein Analytics. https://www.similarweb.com/website/shein.com/#ranking.

Solomon, M. (2020). Consumer behavior: Buying, Having and Being. (13th ed.). Pearson Education, Inc.

Williams, L. (2022). Bloomberg — Are you a robot? Bloomberg. https://www.bloomberg.com/opinion/articles/2022-04-10/shein-s-100-billion-valuation-is-fast-fashion-s-big-moment

Zhou, Maggie. 2022. SHEIN Is Infamously Exploitative — and It Might Be Worse Than You Think. Good On You. https://goodonyou.eco/shein-is-worse-than-you-think/