Founded in 2010, Everlane became synonymous with a certain strain of millennial consumerism that was considered the exact opposite of shein. It sold primarily elevated basics, and told a generation of concerned and high-minded shoppers that they could feel morally good about buying another pair of plain ballet flats or black high-waist skinny jeans. In contrast, Shein became infamous by flooding the Internet with surprisingly cheap, fashionable clothing mass-produced. It has been criticized over the years for alleged poor labor practices.
Given how differently Sheen and Everlane have positioned themselves, many people online felt the acquisition fell somewhere between deeply ironic and blatantly dystopian. Fashion writer Derek Guy, known online as “Menswear Guy,” echoed this sentiment in a post on
However, in reality, this deal is absolutely perfect. In the long run, this may seem like a preview of where Chinese consumer companies are headed next.
Chinese ecommerce giants captured the global market by selling cheap goods on a large scale. Companies like Shein and Teemu flourished partly because of the “de minimis” loophole, a US trade rule that allowed packages worth less than $800 to enter the country tariff-free and with relatively little customs checks. That system became the backbone of a new era of cross-border ecommerce, helping Chinese companies ship inexpensive goods directly to American consumers faster and more efficiently than many traditional retailers.
But when U.S. President Donald Trump imposed sweeping new tariffs on Chinese imports and eliminated de minimis exemptions, the economics underpinning that model began to falter. Chinese companies soon realized that they could no longer rely solely on filling Western markets with products available at cheap prices. If they wanted to continue growing internationally, they needed something more enduring: a good old-fashioned brand.
Shein’s purchase of Everlane, as culturally anathema as it may seem, is part of a broader trend already unfolding in Chinese commerce and manufacturing. Increasingly, Chinese companies are trying to move beyond anonymous low-cost production and own recognizable global brands associated with quality, lifestyle and status.
One of the clearest examples comes from Temu’s parent company, Pinduoduo. In March, the company announced a major new initiative called New Pinmu, a multi-billion dollar effort designed to help Chinese manufacturers build premium international brands. The project is part of a larger strategic vision outlined by Pinduoduo co-CEO Jiazhen Zhao, who is outlining the company’s ambitions to raise manufacturing standards and create pathways for Chinese factories to move up the value chain.
Meanwhile, Luckin Coffee, a Chinese coffee chain that has become one of Starbucks’ biggest rivals, recently acquired Blue Bottle, the cult specialty coffee brand that helped define American third-wave coffee culture. Anta Sports, a Chinese sportswear company that began largely as a domestic sneaker company, has spent several years purchasing premium global sportswear brands, including controlling stakes in Arc’teryx and Salomon.
This trend also reflects broader political pressure within China. The government has become increasingly critical of the brutal price wars and hypercompetition that dominate industries such as e-commerce and electric cars, a phenomenon often referred to as “involution”. Beijing now wants companies to focus more on sustainable growth, high-end manufacturing and global competitiveness rather than an endless race to the bottom.
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