Shein Working To Get NRF Membership: Cannot Make This Up

A new report from CNBC made me look, sit up, and take notice. Shein is working hard to become a member of the NRF, which apparently is the new legitimacy standard for lawmakers.

Perhaps this could be the key for dodging regulation, a wished-for IPO in the United States, and who knows what else. A veneer of legitimacy.

Shein has been on a mission of plausible deniability and reputation-washing:

But I have a lot of questions, and not a lot of answers here. Not because I think Shein should or should not be let in (it seems like a very bad idea), but because the standards do not seem clear at all and the worry is -- what is the criteria that could be used to keep them out?


Why is Shein trying to become a member of the NRF?

In a world where over half of Amazon units are likely driven by Chinese suppliers, where I am sure most of them are likely legitimate, the question is truly, what are the standards?


What specific questions arise regarding Amazon's relationship with Chinese suppliers?

I have a set of questions for what Amazon knows about its Chinese suppliers (and supplies generally):

  • What does Amazon know their labor practices?

  • What does Amazon knows about their safety records?

  • If the product had a poor safety record, what responsibility would Amazon take for it?


How does Amazon’s role at the NRF impact perceptions of Chinese suppliers?

In short, in an era where Amazon is appearing on stage at NRF and in the official rollout of NRF reports, what is the difference? This is the company that taught the US about 3P Chinese brands under an Amazon legitimacy umbrella. Something that Shein and Temu have just taken one step further.


What implications does Shein’s investment in SPARC Group have?

What exactly is different if Shein is a part-owner of SPARC Group?


What are the concerns regarding Section 321 and duties/taxes?

Regarding Section 321 and duties/taxes:

If the worry is deminimis, how much duties and taxes are enough to pay to qualify?

What about the US companies who every day use these same rules for survival?

Is the concern an absolute number of duties, or a relative amount to the total number of imports?

Either way, outlining the criteria may just be a matter of holding back the tides. What standard could they not meet?

We did a whole show on this on the Watson Weekend.


What standards should apply for a US listing?

Let's put the NRF to the side for a second, what should the standard for a US listing be?

Many other countries require joint ventures (including India/China) with a home country to operate within that country. Is that enough? Wouldn't the SPARC Group just IPO in that case instead, or they would just create another entity?


How likely is it that Shein can meet any new regulatory standards?

Wouldn't Shein easily be able to climb any wall put up?


What does the dual role of Shein’s compliance/marketing office imply?

As my friend Nick Kaplan said earlier on the Watson Weekend, when you go to the Shein Compliance office, when you get there on the door it says "compliance / marketing."

Apparently this compliance / marketing group is in full effect.


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Rick Watson

Rick Watson founded RMW Commerce Consulting after spending 20+ years as a technology entrepreneur and operator exclusively in the eCommerce industry with companies like ChannelAdvisor, BarnesandNoble.com, Merchantry, and Pitney Bowes.

Watson’s work today is centered on supporting investors and management teams incubating and growing direct-to-consumer businesses. Most recently, in partnership with WHP Global, Rick was a critical resource in architecting the WHP+ platform, a new turnkey direct to consumer digital e-commerce platform that powers AnneKlein.com and JosephAbboud.com.

Watson also hosts a weekly podcast, Watson Weekly, where he shares an unbiased, unfiltered expert take on the retail sector’s biggest players.

In the past year alone, Rick has spoken at many in-person and virtual events as well as podcasts on topics ranging from retail/ecom to supply chain/logistics and even digital grocery including CommerceNext IRL, ASCM Connect, and Retail Innovation Conference.

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