Is Shein trying to improve its image by acquiring Everlane?

With the acquisition of Everlane, the Chinese fashion app Shein has made a truly remarkable move: after all, the American ethical fashion brand has built its reputation on sustainability and transparency.

“Radical Transparency”

According to various American media outlets, Shein is paying approximately $100 million (€86 million) for Everlane, an American online men’s fashion brand with 11 physical stores, owned by private equity firm L Catterton. The owner had been looking for a buyer for the company, which is saddled with heavy debt, for some time. Like many other “digital-first” brands, Everlane has faced a slowdown in online sales and rising costs in recent years.

The acquisition is certainly a remarkable move by the Chinese fast-fashion company. Everlane, founded in San Francisco in 2010 by Jesse Farmer and Michael Preysman, has focused on sustainability and transparency from the very beginning. Under the motto “Radical Transparency,” the brand gave customers insight into the origin of the raw materials it uses, as well as the design and production processes and logistics. This positioning contrasts sharply with Shein’s image, as the company is often criticized for a lack of transparency and sustainability due to its ultra-cheap disposable fashion.

Observers see the transaction as an attempt by Shein to buy itself a better image, expand its offering with higher-end brands, and ward off the threat of import tariffs.