Shein made headlines this week with what appears to be another attempt to boost its brand credibility in the U.S. Puck’s Lauren Sherman reported over the weekend that Shein is acquiring Everlane, a former direct-to-consumer darling that built its brand around the concept of “radical transparency.” It filmed videos at its factories to give customers a behind-the-scenes look at how its clothes were made. In its early days, it also published on its website breakdowns of exactly how much it cost to produce a particular piece of clothing.
It’s unclear why exactly Shein acquired Everlane – the company hasn’t publicly issued a comment on the matter, nor has it confirmed that the deal has taken place. Sherman reported that Shein was particularly interested in Everlane’s supply chain.
But it’s easy to see how Everlane serves as a sort of foil to Shein — it built its brand around telling customers exactly where its clothes were made. Meanwhile, Shein’s supply chain has been the subject of congressional reports and news investigations. It has received significant scrutiny over where its products are made, how it has taken advantage of the de minimis loophole and how exactly the platform can offer rock-bottom prices like $12 dresses and $5 shorts. And where Everlane might live in concert with Shein’s other arms, like its third-party marketplace, will reveal a lot about how important credible brand names are as Shein continues refining its growth strategy.
