Platformization of the informal garment sector in southern China: Shein and global fast fashion

Purpose This paper examines how platformization co-opts the long-standing informal garment production sectors into a digitally managed outsourcing system through a case study of the leading international fast fashion platform Shein. Design/methodology/approach This research bridges discussions on digital labor platforms with perspectives on informality. It emphasizes the need to juxtapose two interconnected processes as a premise for the discussion: the global informalization of formal work and the platformization of informal economies. The research methods include on-site investigations and semi-structured interviews. Findings Shein’s platform is not an entirely novel form of economic organization but rather a blend of digital technology-driven supply chain management and low-wage, informal, labor-intensive garment manufacturing. The platform plays a dual role as both intermediary and mediator. It replaces trust-based informal networks with algorithmic coordination, reconfiguring labor control, workflow and supplier relations, while its algorithmic governance allows multilayered, outsourced production networks to function cohesively. Fieldwork unveils Shein’s multi-tiered outsourcing network, where varying degrees of informality persist and deepen toward the periphery. This part highlights shifts in labor control, the erosion of interpersonal networks and the emergence of fragile resistance under platform-based production. It also discusses the tension among small business managers, workers and platform governance. Originality/value This paper argues that rather than formalizing the existing informal garment sectors, Shein’s platform tolerates and sustains informal practices as cost-efficient production strategies. In doing so, the platform institutionalizes existing dependencies and inequalities through digital governance, deepening the integration of the informal garment sector into the global supply chain.