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For instance, why is a 鈥淪hein haul鈥� so cheap? What environmental costs are hidden behind ultra-low prices? What responsibility do shoppers have to understand where products come from and how they鈥檙e made? And just how much influence should algorithms have over what people buy?

These are the kinds of questions students grapple with in Lu鈥檚 course. Their conversations give the professor hope.聽

鈥淪tudents are not just consumers,鈥� he said. 鈥淭hey are future industry professionals who realize that sourcing decisions have very real impacts on people and the planet.鈥�

Here, Lu shares five things everyone 鈥� from prospective students to potential shoppers 鈥� should know about Shein.聽聽

1. Shein changed the rules from prediction to reaction聽

For decades, fashion companies relied on forecasting. Retailers predicted what consumers were likely to wear months in advance. Then, they produced large inventories, hoping their forecasts proved accurate.聽

This led to waste. Lu鈥檚 previous research compared sales data to trade data and found that 30-40% of brand-new clothing imported to the United States never gets sold.聽

Shein takes a different approach. Rather than trying to predict future trends, the company monitors social media, particularly TikTok, to understand consumer demand and respond in real time.聽

2. Shein thrives on overconsumption聽

While Shein decreases waste by reducing overproduction, it also creates a culture of overconsumption, warned Lu.聽聽

鈥淲e鈥檝e changed the problem from one thing to another,鈥� he said, adding that environmentally unfriendly textile materials (low-cost virgin polyester instead of cotton, for example) reduce production costs while allowing the company to produce more, more, more.聽

鈥淓xpensive clothes tend to have a longer life cycle because consumers will protect, even repair, them,鈥� Lu added. 鈥淣ow, the mentality is, 鈥業t鈥檚 so cheap, I鈥檒l keep buying.鈥欌�澛�

3. Ignorance isn鈥檛 bliss聽

Lu鈥檚 biggest hope for Shein is to increase supply chain transparency, beginning with a public release of their factory list.聽

鈥淲e don鈥檛 know who鈥檚 making our clothes,鈥� he said. 鈥淲orkers鈥� stories are invisible.鈥�

To elucidate this point, Lu rattles off a long list of questions Shein can't answer: How many factories make products for the company? What are their names? Where are they located? How much do they pay workers, and what are their typical hours? What鈥檚 the total water usage, energy usage and carbon emissions of their product?

鈥淭hat鈥檚 why we need to push Shein to release more information,鈥� Lu said. 鈥淚f consumers only care about costs, that鈥檚 all the company will prioritize.鈥澛犅犅�

4. Knowledge is power聽聽

If Shein鈥檚 labor practices become more visible, public policy could incentivize meaningful change, Lu added.聽

For instance, legislators could develop fees for excess production to minimize damage caused by textile waste. Or they could mandate a minimum percentage of recycled content. Options exist.聽聽聽

鈥淭hey would naturally change the game and force companies to rethink their current formula,鈥� Lu said.

5. Shein鈥檚 secret weapon? Data and demand.聽

In conversation with Shein leaders, Lu learned that the company doesn鈥檛 care about replenishment rates (how quickly inventory is added or restocked).聽

鈥淭he goal is to collect data,鈥� he said. 鈥淭he more data consumers feed, the more new products Shein can design and offer to the market.鈥�

Overproduction is not a concern. The flip side?

鈥淸Responding to demand] doesn鈥檛 give factories enough time to prepare,鈥� said Lu. 鈥淭he business model means the company doesn鈥檛 even know what products to make or how many workers are needed to complete the work.鈥�

Instead, last-minute requests create 鈥渉igh-pressure, high-stress environments.鈥�

It is, said Lu, the inevitable byproduct of a business model cut from a different cloth.聽聽