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Motley Fool Money

Fast Fashion’s Unknowns

Motley Fool Money

The Motley Fool

Business, Investing

4.43K Ratings

🗓️ 24 November 2024

⏱️ 27 minutes

🧾️ Download transcript

Summary

Even if you don’t shop on Shein, the fast-fashion retailer may have changed online shopping for you. The site offers necklaces for under $2, hoodies under $11, and sneakers for less than $20. But, how is the company offering prices that low?  Timothy McLaughlin is a contributing writer for The Atlantic, with a story titled, “The Mysterious, Meteoric Rise of Shein”. Mary Long caught up with McLaughlin to discuss:   - The questions about how fast fashion became ultra-fast fashion. - Why Shein’s leaders may be staying quiet. - How an export and tax loophole is driving business for Shein and Temu, and why that could change.  Read Tim’s story: https://www.theatlantic.com/international/archive/2024/09/shein-ceo-chris-xu-fast-fashion/679709/  Companies discussed: PDD, AMZN OTC: HNNMY,  Host: Mary Long Guest: Timothy McLaughlin Producer: Ricky Mulvey Engineers: Rick Engdahl Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

You know, there's certainly people who say, oh, like, I, you know, I never use that website, or, you know, I'm not downloading that app.

0:06.2

I stay off it. And I think people don't realize or maybe unaware that even if you're not using

0:11.4

Sheen or Timu, they've probably changed the way that you're shopping.

0:18.7

I'm Ricky Mulvey, and that's Timothy McLaughlin, a contributing writer for The Atlantic,

0:22.9

who's got a story titled The Mysterious Meteoric Rise of Sheen. Sheen is a fast fashion company

0:28.6

that's taken off in the U.S., selling long-sleeved t-shirts for $7 and jeans for under 20 bucks.

0:35.1

The website is packed with flash sales and offers that almost sound too good to be true.

0:40.8

And even if you haven't shopped there, Sheen has changed the landscape for online commerce.

0:45.4

Even Amazon has launched a competitive offering.

0:48.0

My colleague Mary Long caught up with McLaughlin to talk about his reporting and the questions surrounding this mysterious company.

0:57.7

So you wrote an article that was published in The Atlantic a couple months ago about the

1:01.6

mysterious and meteoric rise of Sheehan.

1:04.7

This company started in 2012, though there are some sources that cite actually 2008 as the founding

1:09.5

date.

1:10.6

Today, over a decade later, little

1:12.7

is still note about the company, especially its financials. It is privately held. But it's estimated

1:18.0

that, okay, this is a company that brings in over $30 billion in revenue, over $2 billion in

1:23.0

profits, its latest valuation, said that the company was worth more than $60 billion.

1:30.4

Tell us about this meteoric rise.

1:35.5

How did Sheehan get its start and how did it get to be the behemoth that it is today?

1:36.4

Yeah.

1:42.6

So what we do know from the reporting that I did that many other people have done on the company,

...

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