Shein Buys Everlane, Sparking Outrage Among Brand's Loyal Customers

Shein, the ultrafast-fashion juggernaut, is buying Everlane, a brand that once pitched millennial shoppers on a vision of fashion with "ethical factories" and "radical transparency" into how its clothes were made and priced.

"This is the start of a bigger chapter for Everlane and the team behind it," CEO Alfred Chang said in a statement shared with NPR. He did not disclose the size of the deal, but added that Everlane would remain "an independent brand, staying true to our longstanding brand values, sustainability commitments, and exceptional quality."

Buying California-based Everlane gives Shein a bigger U.S. foothold and access to a higher-end online-retail model. Shein was founded in China but has ballooned into a global giant, up on the latest TikTok micro-trends with dresses under $15 and jewelry under $5.

Shein shelved its plans to become a publicly traded company in either the U.S. or in Europe, as it faced extensive legal complaints and scrutiny by lawmakers on both continents, particularly over its labor practices.

For Everlane, the deal appears to present a lifeline. CEO Chang promised a new era with "expanded global reach, new capabilities, and greater opportunities."

But Everlane fans mourned online, with posts accusing the brand of selling out and betraying them. A headline by Fast Company declared: "The era of millennial optimism is officially over."

Once sported by celebrity fashionistas like Meghan Markle and Angelina Jolie, Everlane focuses on minimalist basics and natural fabrics in the "affordable-luxury" category, with tailored shorts for $120 and linen tops for $80.

The company came of age in the 2010s in the wave of trendy direct-to-consumer companies. Like sneaker-maker Allbirds, they wooed shoppers with pitches of sustainability and transparency. (Yes, that same Allbirds in April claimed it was pivoting to becoming an AI company).

Everlane's finances have faltered in recent years. With debt weighing heavy on the brand, the majority owner, private equity firm L Catterton, decided to sell. Shein and L Catterton did not respond to NPR's requests for comment. After Puck earlier reported news of the deal, it ricocheted through the fashion world.

"Everlane was built on this brand around sustainability and fewer, better things -- and Shein often feels the opposite," says Katie Thomas, who leads the Kearney Consumer Institute, a think tank inside a consulting firm that works with major retailers and brands.

"The biggest challenge with any value-based product is the price has to be right for the right consumer," Thomas says. "And Everlane, I think, just was exposed to a category that got crowded."

Now, brands like Aritzia, Reformation and even Gap are pitching "affordable luxury," -- as is another of Everlane's rivals, Quince, which is wooing shoppers with much lower prices.

One big question now, Thomas says, is whether a tie-up with a paragon of fast-fashion alienates Everlane's current clientele -- or sways Shein shoppers to trade up.

Shein for years has tried to shed its fast-fashion reputation with sustainability commitments. Another question now: Will it benefit from Everlane's internal processes? Or will Everlane become a faster-moving trend chaser?

So far, the answers to those questions are murky.