Everlane's $100M Sale to Shein: A Sign of Changing Ethical Fashion?
Everlane, once a champion of ethical fashion, is being sold to Shein for $100 million. This unexpected move marks a shift in the world of mission-driven brands. What does it mean for the future of sustainable fashion?
Why is Everlane, once the darling of ethical fashion, selling for $100 million to Shein, a brand not known for its ethical practices? It's a question many are asking and it signals a broader trend in the industry.
The Numbers Behind the Sale
Everlane, valued at $100 million, is now under Shein's wing. The deal concludes years of financial instability for Everlane. The acquisition comes at a time when Everlane's majority owner, L Catterton, had been shopping the brand around since March. Despite its shaky ground, few expected it would sell to a retailer like Shein, accused of forced labor and labeled by researchers as a major polluter.
The Context: Ethical Brands in Trouble
This isn't an isolated case. Everlane's sale is part of a broader trend affecting ethical brands. Allbirds, another once-ethical darling, shifted its focus to AI after selling its footwear assets. Beautycounter, known for clean beauty products, shuttered after acquisition turmoil. These brands emerged with a mission during the optimistic Obama years. Now, they face extinction under different political and economic climates. For millennials who grew up with them, it's like watching an era's ideals crumble.
Industry Insiders Weigh In
According to industry insiders, the shift from sustainable practices to profitability pressures isn't just about bad luck. The competitive market forced these brands to pivot or perish. Everlane made real efforts towards ethical production, like reducing plastic in its supply chain and improving factory conditions. Despite this, the market's demands for continuous innovation and profitability proved too much.
What's Next for Sustainable Fashion?
The question now is: Does this spell the end for mission-driven brands? Not necessarily. Brands like Patagonia and Eileen Fisher have thrived by embedding ethics into profitable business models. Even as Everlane's founders couldn't predict this end, their innovations still influence the industry. The hope is that upcoming entrepreneurs learn to balance ethics with business sustainability. So, are we witnessing the death of ethical fashion? Or is it just an evolution?