All in a Name.

Shabby-Chic let's take the word apart:

Shabby- being, ill-kept showing signes of wear and tear, scruffy, tattered

Chic- see( fashion): style, vogue see (stylish)- posh, sharp, classy

So Shabby Chic,: the look of things with signs of wear, transformed into a classy, stylish decor.
Much of Shabby Chic furniture is painted.  Take a classic design of traditional or antique furniture that has seen its days....on the outside but functions perfectly....give that piece a "face-lift" with two coats of a cottage white paint and poof....you have a treasure to behold.  Have only one piece of shabby-chic furniture, or furnish your whole home in shabby-chic. (This mirror was in very rough shape, varnish was coming off and dinged and scratched, now its a lovely shabby chic mirror ready to go)