Faster fashion
Shein comes out of the closet
Good morning, fashion mavens. This is your Stock Market Rundown for October 31st, 2023. Thanks for hanging out with me. Let’s dig in:
TODAY’S TOP STORY: WARP-SPEED WARDROBE 👚
The “fast fashion” clothes sold at Zara and H&M used to seem dirt cheap. But that was before the advent of online retailer Shein, whose dresses and tops can cost five bucks—or less.
Singapore-based Shein blew up to billions in revenue during the pandemic thanks to a brilliant marketing strategy: sending entire closets’ worth of free clothes to influencers, who then post hauls on TikTok showing off their polyester prizes.
Shein is online-only, shipping packages directly from their manufacturing hub in Guangzhou, China to buyers worldwide. The site’s impossibly-cheap garments and promiscuous use of discount codes have made it the #1 pick of Gen Z online shoppers. Now, Shein is rumored to be angling for an IPO.
Problem is, the company’s been accused of cutting costs by cutting corners, legally speaking. Investigations uncovered that their supply chain may be using forced labor. And there are stories of employees toiling 18-hour days for pay that’s rock-bottom even for China. (Shein denies the allegations, predictably.)
But hold on—I thought the Youths Of Today were more concerned with the environment than with consumerism? Buying all these crap quality clothes only to toss them in a landfill after a few wears isn’t too sustainable, is it?
Apparently, Gen Z isn’t too worried. And with Shein dropping up to 10,000 new items on its website every day, you’re sure to put together a hype outfit to wear to the oil pipeline protest.
SO WHAT ELSE IS GOING ON?
Got a light? Marlboro manufacturer Altria reported earnings that missed expectations as consumers preferred to suck on an e-vape rather than ripping a dart. Altria management would be thrilled if the FDA would crack down on dangerous disposable e-cigarettes… so that their own dangerous tobacco products could continue to dominate the convenience store.
Adidas reported full-year earrings that were better than expected. But divorcing Kanye was just as painful for Adidas as it was for Kim K—the shoemaker wrote down hundreds of millions in Yeezy inventory.
Repetitive strain alert: a survey of Amazon warehouse workers revealed they suffer from physical injuries and mental stress. Tough to push back at a job where complaining might get you replaced by a robot.
Luxury electric vehicle manufacturer Lucid Group reported decent third-quarter deliveries. Lucid’s top-end electric car costs a hefty $250K… for that price, you could buy a Class A motorhome and start a new life on the open road, no batteries required.
That’s it for today, compadres; see you at the usual time tomorrow morning. Yours in capitalism, The Axe