Dive Brief:
- Shein is lowering its prices weeks after it raised them to account for the impact of tariffs on its operations, according to a statement on the fast fashion giant’s website Wednesday.
- The company said that though there was “lots of chatter around tariffs,” customers “don’t need to worry about paying anything extra after checking out.” Shein's price drops are effective across a “wide range of styles,” per the statement.
- Shein’s competitor Temu similarly walked back tariff-related price increases earlier this month, saying it plans to offset costs through a transition to a local fulfillment model.
Dive Insight:
Shein and Temu raised their prices in April in response to President Donald Trump’s threatened 145% tariffs on China that would have greatly impacted the fast fashion giants, both of which have a significant supply chain in the country. Last week, the U.S. and China reached an agreement to pause the tariff and import duties they set for each other for 90 days.
Shein’s Wednesday statement doesn’t reference the U.S.-China agreement as the reason for the price drop, but it includes the definition of a tariff and an explanation for customers on its pricing system.
“Any outside information claiming that you have to pay tariffs separately for your SHEIN items is false,” the company wrote. “SHEIN remains 100% committed to simple, affordable, and all-in pricing.”
In the wake of shifting trade policies, customers are concerned about how tariffs will impact the price of clothing. More than half of consumers said they were willing to switch brands due to pricing, per an April report from marketing firm Wunderkind.
Shein and Temu, which rose to popularity in the U.S. partially due to their cheap prices, could be at risk. A report from Omnisend found that 30% of customers said they’d stop or reduce their shopping on these marketplaces if prices went up.
