[Report] Chose It for the Cheap Price but "10% VAT Extra"... Global Hit Shein Popup

'Fast Fashion' Hub Shein
Seoul Seongsu-dong Popup Site
Wrinkled Clothes, Unremarkable Store Disappoint Visitors

"Shein is an online shopping mall I often purchase from because of its low prices in Japan, but the quality is often disappointing upon delivery, so I think I can see and buy the products directly today."

On the 9th, Asami, a Japanese woman in her 20s, who was met at Shein's first offline store in Korea, the Shein popup store in Seongdong-gu, Seoul, said this.

Shein, which has taken the global fast fashion (SPA) market by storm, opened a popup store in Seongsu-dong the day before. Kim Yoo-jung, the ambassador of Shein's sub-brand 'Daisy,' who was hanging outside the popup store, greeted customers first.

Customers browsing around the store.
Photo by Minji Lee

Shein operates brands such as Daisy, Anewstar, and Mode, directly manufacturing and selling clothes. Currently, it has expanded into markets worldwide, including the United States, Europe, Japan, and Southeast Asia. According to data research firm Marketplace Pulse, Shein ranked number one in downloads in 25 out of the 50 countries with the largest gross domestic product (GDP) worldwide. With competitive prices around 10,000 won (10 dollars), customers can purchase various styles of clothing, making it a representative leader in global 'fast fashion.' In the United States, its sales overwhelmingly surpass SPA brands like Zara and H&M.

On the second day since opening, about ten visitors were noticeable at the Shein popup store. There appeared to be more foreign tourists than Koreans.

Upon entering the first-floor store, a dedicated Daisy section was displayed, featuring products worn and styled by Kim Yoo-jung during photo shoots. Daisy is a newly created brand aimed at consumers who want to emulate the lovely and fashionable (trend-sensitive) clothing tastes of Koreans. Shein reinterpreted clothes frequently worn by Koreans to create this new brand.

The second-floor store was arranged by concept rather than brand, including Balletcore, Easywear, Vacation, Party, and Geek Chic looks. The approximately 30-pyeong (about 99 square meters) space was filled with thousands of garments. A Shein representative said, "We cannot confirm the exact number of clothes," adding, "The goal is for customers to touch and visually check more clothes to enhance their experience with Shein."

Wrinkled blazer jacket, the left garment has a stain on the collar area.
Photo by Minji Lee

While it was good to see various concepts of clothing all at once, there were some disappointing aspects. The blazer jacket, priced at around 50,000 won, the most expensive item in the store that day, had stains on it and appeared wrinkled. Skirts and T-shirts were also poorly maintained, with wrinkles visible in many places. Shin (18), who visited the store that day, said, "I usually buy clothes frequently through Ably and Musinsa. The quality seems okay for the price, but I wasn't satisfied enough to keep buying from Shein. Some of the clothes were confusing and embarrassing."

Many also expressed disappointment with Shein's biggest competitive advantage: price. Shein publicly displayed a 10% VAT at this popup store. The price tags showed prices before reflecting Korea's VAT rate, so they matched the app prices, but at the point of sale, the VAT had to be applied. From the consumer's perspective, the visible price and the actual price paid differ, which can lead to a negative purchasing experience. For example, if you buy a 9,800 won item, the actual amount to be paid exceeds 10,000 won.

Shein stated, "We included QR codes on each product so customers can browse in-store and purchase online with many coupon benefits," adding, "Our focus is on showing more products rather than significantly increasing in-store sales, so customers can participate in events without purchasing items."

A notice board stating that you must pay 11,000 won when purchasing a 10,000 won clothing item.
[Photo by Minji Lee]

Meanwhile, products that caused controversy for being counterfeit the day before were not found. Shein had displayed T-shirts with designs similar to the American brand 'Polo' and the casual brand 'Kirsh,' which sparked counterfeit controversies. A company representative said, "We are aware of the controversial parts and have currently excluded those products," and added, "We have nothing further to say on this matter."

The Shein popup store will run until the 14th. Rather than opening a permanent store in Korea, Shein plans to continue engaging with consumers periodically through popup stores.

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