Not so fast! Barefoot Investor warns cheap fashion has a hidden cost
Chinese brand Shein has put fast fashion into hyperspeed, adding 6000 new styles every day, but Scott Pape warns that $7 jeans have a hidden cost.
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“You’re not wearing that, are you?” sighed my wife, Liz.
We were heading out to a party and I was wearing my standard uniform: boots, jeans, and the next clean T-shirt that was in my cupboard that morning …
… which just so happened to be a free promotional T-shirt from my hairdresser, with a big ‘Lucky’s Barber Shop Woodend’ logo (and shop address) on the front and back.
“Please don’t wear that shirt … it confuses people … they think you’re a hairdresser”, Liz pleaded.
‘I love what you’ve done with your fringe, it totally frames your face!’
It’s true – more than a few times when wearing this shirt, random people have struck up a conversation with me about hairdressing. Most of the time I correct them, but every now and again I just roll with it.
I’ll theatrically cock my head to the side, study their face intensely, and say something like:
“I love what you’ve done with your fringe, it totally frames your face!”
Liz stood in the hallway shaking her head, resigned to the fact that the man she married is not only a bogan – but a cheap bogan.
At the party, a sharply dressed fashionable DIK (Dad I Know) told me he got his shirt on “Shein, for like ten bucks”. Everyone in the circle nodded knowingly, but I just stared at him blankly.
“Is that a shop?”
Yes it is, I discovered.
Though it turns out Shein is more like the meth-addicted brother of retail giant Zara.
You see, Zara changed clothes retailing in the 90s forever when it created ‘fast fashion’:
They take photos at fashion runway shows in Paris, send them to their factories in Spain, and have cheap knock-offs made, shipped and on their shelves within 15 days.
These clothes may be cheap but they’re profitable as hell – the Ortega family, which started the business, is now stupidly rich – as in $120bn rich.
Now comes Chinese brand Shein, which has put fast fashion into hyperspeed:
Zara reportedly adds around 2000 new styles every month.
Shein adds 6000 new styles every day.
As a result, Shein is now certifiably huge – the world’s largest clothes retailer – bigger than H&M, Nike, Adidas and even Amazon. Its pop-up shops in Melbourne, Sydney and Brisbane have caused fans to go into a meltdown as they claw each other for $3 T-shirts, $5 skirts and $10 jeans.
Yet if $10 jeans are too expensive … how about $7 jeans?
Well, this is where things get really weird.
You can find them on another Chinese mega-shopping app called Temu – which is the hottest thing in shopping right now. Along with clothes, Temu sells all the junk you’d find at a flea market.
If Shein is a meth-addicted version of Zara, Temu is the magic-mushroom-munching half-sister of the lot of them. Its catchcry is “shop like a billionaire”.
Yeah, nah.
I can’t really picture James Packer buying a men’s two-piece suit ($46.70 – Valentine’s Day special!), or a pooping dog butt toothpaste dispenser ($2.36), or 12 pairs of comfy ankle socks ($2.96).
Though I could see him investing in it.
After all, Temu has (astonishingly) quickly become one of the most popular apps in Australia. It’s reported that it had over nine million registered Australian users just two months after it launched, largely driven by millennials attracted to an app that gamifies shopping.
But hold your hashtags!
Fact is, if you can get a pair of jeans delivered to your door for $7, someone is getting trousered.
Like the environment. Like the poor bastards in sweatshops. And like the Australian retailers – Kmart, Big W and your local haberdashery – whose business models are being turned upside down.
Still, thankfully there will always be a need for a hairdresser. Then again, you can buy a four-piece salon professional barber hairdressing kit on Temu for just … $2.46.
Snip, snip!
Tread Your Own Path!
In 81 Days I’m Walking Away from Millions
Dear Scott,
I’ve been married for 35 years, and I am scared. I’m only 81 days away from accessing my super balance, which is $30,000. I need to take that money and escape from my husband. I would be leaving a property worth $1.7 million. Nothing is in my name, only the debt of $170,000 that’s left of the mortgage. I know I’m losing everything I’ve worked for, but I’m scared of him, and scared that he can take what I have left. I feel I need to take the money and go overseas so he can’t find me.
Denise
Hi Denise
I am so sorry.
You’re right – now is the time for action – you need to escape.
But how?
Well, let me tell you a little secret. I’ve helped hundreds of women plan their escape, and their partners all had one thing in common:
They were bullies.
And, like all bullies, they work hard to convince their partners that they have all the power, sometimes with violence. Mostly with insults and put-downs that systematically erode their self-esteem. And almost always by controlling all the money, which keeps them trapped.
Denise, his days of bullying you will soon be over.
That’s because over the next 81 days I want you to do the following:
First, call your bank’s hardship department.
Tell them what’s going on. They will open a bank account in just your name that he can’t access. The best banks will even fund it with some ‘getaway money’. Seriously.
Second, lock everything down.
Change all your passwords and PINs, and lock down your phone’s privacy and location-tracking settings. While you’re at it, scout around and find as much financial information as you can: you’re looking for copies of your marriage and birth certificates, and any information on shares, property or superannuation.
Third, go see a family lawyer.
The first meeting will be free, and they’ll explain that you’re entitled to a share of the assets. He may have bullied you into believing that he can take your super, but the truth is that it’s he who needs to be worried financially!
Finally, when it comes time to make your escape, spend money on getting safe accommodation that he can’t access, and getting counselling. Reach out to the 1800RESPECT line on 1800 737 732 – there are people who can help you.
Good luck.
You Have 60 Seconds to Do This NOW
Hi Scott,
My good friend wants to invest $100,000 into a crypto-style investment strategy called GsPro. They say in 18 months you will 10 x your investment. What advice do you have for her as she feels she needs to take a risk to make some money. She is feeling behind where she should be and doesn’t trust the regular banks and mainstream investment options. Would she be better off with ETFs as they’re a relatively simple, set-and-forget strategy?
Heidi
Hola Heidi,
I have no advice for her, only for you.
Are you ready?
I want you to grab your car keys and get in your car. While you’re driving, ring your friend and tell her you have something life-changingly important that you need to speak to her about, immediately, in person.
When you get to her house, give her a hug. As you’re doing this, reach around and take off her belt. As in slip it out of her pants. Use her belt to strap her to her dining chair. Then take out your phone and turn the flashlight on and shine it in her eyes, while repeatedly yelling at her:
“DO YOU WANT TO LOSE $100,000? THIS IS A SCAM. THE BAREFOOT INVESTOR TOLD ME SO!”
You are only allowed to unshackle her when she promises you that she won’t give her hard-earned money to strangers on the interwebs.
Hurry up, Heidi. Your time starts now. Your friend needs you.
Give it a belt.
Originally published as Not so fast! Barefoot Investor warns cheap fashion has a hidden cost
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