The Tamesis
The rise of platform competition
The Shein-Everlane deal is part of a growing trend of platform competition, with fashion companies increasingly competing as ecosystem and infrastructure operators rather than just brands. Companies like Shein, Amazon, Quince, and Inditex have centralized their data systems and leveraged ownership of things like sourcing, fulfillment, pricing, and creator ecosystems to shape and respond to demand. Like Shein, Inditex has upgraded in recent years, moving further upmarket, shedding some of the stigma of fast fashion and escaping some of the price pressures of lower-cost clothing. The fact that it has complete control over logistics makes this transition possible. “The brand has to be different or fast, that’s the choice,” Sobek said. “Very few people have the ability and culture to balance both.”
He points out that this change is as important as the delayed shift in electronics manufacturing in the 1980s and 1990s. Companies are trying to cope with shortening demand cycles by making production decisions later so they can respond to actual demand rather than forecasts — something much of the fashion industry is still grappling with. H&M is already trying a version of this approach, allocating product quantities to suppliers in advance while making concrete decisions on styles and materials closer to time. Sobek said Shein “is pushback on steroids,” and if brands want to adopt a similar model, that’s what they have to address.
Christine Goulay, founder of Sustainabelle Advisory Services, said the pairing of Shein with Everlane is evidence of different functions coming into the same system. Of course, Everlane has to understand what a partnership with Shein might mean for its perception among consumers as a sustainability-first brand, but it could achieve an unexpectedly positive position. What Gulay is thinking about is: “Can you create positive spillovers on both sides, so that sustainability and operational performance become part of the same value creation story? That will be something to watch.”
Right production scale isn’t everything
Guarino said that making only products that can be sold may be beneficial in minimizing waste, but that doesn’t eliminate all the other ways a product can be “wrong.” “I’m interested to see if this is truly an example of a business translating its technology and supply chain advantages into higher quality, more durable products that won’t end up in landfills as quickly. There’s still doubt that Shein could operate the same model using more expensive materials (i.e. less polyester) and higher worker wages. “It would be very interesting if they could do that, because it starts to prove that low cost, low quality isn’t necessarily the best business model. And if you get rid of all those indirect costs, then you start taking some real action to change the harmful effects that we’re seeing. “
Regardless of the final outcome, Sobek said Shein will make sure investors know its model isn’t limited to the lower end of the market as it prepares for its IPO. Whether intentional or not, it may also prove that those brands with deeper control over sourcing, manufacturing, logistics and pricing will stand out.
“Everlane was a proof point and a starting point for how Shein could apply the system to high-priced brands,” he said. Sobek added that we are witnessing “significant changes in the industry” and that business models that prioritize responsiveness will increasingly be valued. “The idea that fashion is a fixed system for large retailers served by bulk suppliers is falling apart.”
