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Fortune
Fortune
Neeru Paharia

The real reason for Shein’s success? A cognitive bias known as 'temporal discounting'

(Credit: Per-Anders Pettersson - Getty Images)

They don’t make things like they used to. From sweaters to furniture, cheap consumer goods break down quickly and are frequently discarded. Consumers typically wear fast-fashion products for less than a year, part of an over-decade-long 36% decrease in the number of times an item is worn. People used to treat buying a dresser or kitchen table as a once-in-a-lifetime event. Now, with most furniture made from pressboard and plywood, their purchase may only last a few years.

Companies like fast-fashion empire Shein or online marketplace Temu are spending millions to spotlight impossibly low prices that feel too good to be true. These prices come with their own hidden costs. Consumers may end up spending more to replace mediocre products. Goods end up in landfills. Water and energy are wasted churning out the next batch. The fashion industry alone contributes to 10% of global carbon emissions each year.

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