By: Hannah Gracedel

Picture this: you’re scrolling through a fast-fashion site, searching for the perfect fit for your upcoming Sabrina Carpenter concert when one of the designs looks eerily familiar. You realize it’s a piece you created, and now it’s being sold without your permission. This is Shein—a global fast-fashion powerhouse that not only keeps up with trends but seems to predict them before they even happen. But how does Shein manage this impossible feat? And at what cost to the original creators behind those trends?

Background: Who Is Shein?

Shein (pronounced “SHE-in”) is a China-based fast-fashion retailer founded in 2008 that’s taken the online shopping world by storm. For those unfamiliar, “fast fashion” is a business model centered on producing trendy, affordable clothing at lightning speed. This approach meets the demand for low-cost, stylish clothing while sacrificing quality, environmental sustainability, and, often, ethical production standards. With a valuation now soaring past $100 billion, Shein is easily among the most valuable private companies in the fashion world. And its popularity is not slowing down. Currently, Shein’s website boasts more than 600,000 items, with a staggering 10,000 new products added every day.

So, how does Shein pull this off? The answer lies in their use of artificial intelligence (AI), a secret weapon that allows Shein to create and upload new designs faster than anyone else. But with AI comes controversy.

Shein’s Recipe for Rapid Production: AI-Powered Design

At first glance, Shein’s ability to churn out designs seems like a stroke of tech genius. Shein’s AI systems scan the internet for emerging art and design trends. Once they spot something popular, the systems whip up new products based on its searches. Here’s the kicker: some of these products are near-identical copies of original art found on the web from independent artists or designers. The process is so automated that there’s doubt that humans are even involved in the design process.

So, where’s the problem? By replicating designs without acknowledging the original creators, Shein often runs into a crucial issue: copyright infringement.

What Is Copyright Infringement?

Copyright infringement occurs when someone uses someone else’s original work without permission. Even if the artist has not registered their work with the copyright office, they can still have grounds for a legal claim. Certain legal elements must be met to prove infringement, including proof that (1) the work is original, (2) the infringer had access to the original work, and (3) the copied work is “substantially similar” to the original. When it comes to Shein, the “substantial similarity” requirement can become painfully obvious—especially if an artist can prove that the design was lifted straight from their work.

How Is Shein Sidestepping Legal Trouble? – The Answer Can Be Found in Their “On-Demand” Model.

Shein’s “on-demand” business model is as ingenious as it is  problematic. The company rolls out new designs in small quantities, watching sales data closely to see if they catch on. If a product becomes popular, Shein ramps up production to meet demand. Otherwise, they quietly retire unpopular product lines.

Why is this “small-batch” approach so effective? First, it reduces overproduction—a common problem in the fashion industry, where unsold items often end up as waste. Second, it saves money, which allows Shein to keep its prices rock-bottom. And third, and most importantly, it may even help Shein dodge legal consequences.

The small-batch approach can make it hard for artists to notice if their designs are being copied, especially when Shein drops thousands of new items every day. Even if a creator does catch Shein using their design, Shein can cease production without much financial loss and potentially settle the issue with minimal expense due to the initial small batch sizes. It’s possible that Shein has even built this risk into their business model, as the profits from unnoticed successful designs likely outweigh the costs of occasional small settlements.

What Can Artists Do If Their Work Has Been Stolen?

Artists who find their work copied on Shein’s site do have some options, though these are often uphill battles. Shein provides an intellectual property (IP) complaint portal on its website, where creators can file a claim if they believe their designs have been infringed. Yet, given Shein’s sheer size and daily output, this system is far from reliable. For artists who feel their complaints are ignored or insufficiently addressed, legal action might be their only recourse.

Currently, Shein faces multiple class-action lawsuits, with artists and designers banding together to confront Shein over alleged copyright violations. If successful, these cases could be game-changers for the fast-fashion industry as they may set precedents for how copyright laws are applied to AI-driven, high-volume retailers like Shein.

These lawsuits are more than just isolated legal cases; they could shape the future of fashion retail by holding companies liable for how they use–and sometimes misuse–AI-driven design. If Shein’s legal troubles escalate, it could impact the company’s plans to go public—something the company has hinted at in recent years. Going public with an unresolved history of copyright disputes could complicate Shein’s appeal to investors and invite even more scrutiny.

Conclusion: The High Cost of Fast Fashion

Shein’s business model has enabled it to dominate the fast-fashion industry, but its approach raises important ethical questions. As Shein continues to test legal boundaries, the fashion industry—and the rest of us—must ask ourselves how much we’re willing to compromise for convenience and low prices. In the end, AI may bring us fashion at the speed of light, but without ethical considerations, it’s just as quick to leave artists and creators behind.