To be clear, there is no evidence that Shein employs children or produces an unsafe labor environment, but the company has not publicly disclosed workers’ wages or hours. In August, Reuters reported that Shein has yet to disclose information about its working conditions and supply chain to the British government, which the retailer is required to do under UK law. Shein had also previously falsely stated on its website that its factories were certified by international labor standard bodies, according to Reuters. “Each new design is basically a bet because Shein can estimate how well a product is going to do, but it doesn’t know for sure until it sells,” Brennan explained. “Compared to its fast fashion competitors, Shein is able to take more bets, but at a lower risk. It’s able to place very small initial orders with these factories, about 100 or even smaller.” These batches were much smaller than Zara’s and that of ultra-fast fashion retailers like Boohoo, which reportedly ordered about 300 to 500 units per style.
Analysts have dubbed Shein’s business model “real-time retail” because new designs can take as little as three days to produce, Vox reported. Because of this, there are as many as 600,000 items listed on the site at any given time, according to BBC. Although the firm has paid out more than $1m (£741,000) to independent designers to date, Twitter still sees complaints from smaller businesses. Some claim that Shein has allegedly copied their designs and sold similar items at a lower cost.
Before Shopping At Shein Again, Here’s Everything You Need To Know
But despite its ubiquitous presence online, the company has a reputation for being very reclusive. Meanwhile, online rivals Asos’ and Boohoo’s revenues reached $4.4 billion and $2.4 billion respectively in 2020. But then, companies offering endless but meaningless choices, in turn requiring endless but meaningless consumption, is hardly new. All this time, Xu worked long hours, often staying at the office well after the others had gone home. “It would be 10 pm, and he would be nagging me and buying me late-night street food and asking more. And then it could end at 1 or 2 am.” Li gave Xu advice over beer and meals—boiled and salted duck, vermicelli What is a trader soup—observing that Xu listened carefully and learned fast.
China Voices: What makes Chinese consumers…
The production of polyester textiles alone emitted about 706 billion kilograms of greenhouse gases in 2015, and hundreds of gallons of water go into making a single cotton garment. Most of the clothes from Shein are made from synthetic fabrics, which are responsible for releasing plastic microfibers into oceans. A 2021 investigation by the Chinese digital publication Sixth Tone uncovered a pattern of “loose oversight and poor working conditions” at some of Shein’s manufacturers. It discovered that Shein’s suppliers often subcontract orders to small workshops inside rundown buildings to cut costs.
- Our audacious strides extend beyond mere industry participation to reshaping the fashion landscape itself.
- Apart from the Public Eye report, there is little to no information that confirms whether or not Shein is enforcing policies that protect workers on its production sites.
- The production of polyester textiles alone emitted about 706 billion kilograms of greenhouse gases in 2015, and hundreds of gallons of water go into making a single cotton garment.
- One former supplier, Liu Zhiyong, said he appreciated Shein’s prompt payment, within 30 days, as opposed to an industry norm of 45 days or more.
- It’s able to place very small initial orders with these factories, about 100 or even smaller.” These batches were much smaller than Zara’s and that of ultra-fast fashion retailers like Boohoo, which reportedly ordered about 300 to 500 units per style.
In September 2021, Shein updated its website to include a “Supply Chain Transparency Statement” and a code of conduct that its suppliers and manufacturers must agree to. Producing clothes, in itself, negatively impacts the environment in a number of ways. For one thing, polyester — a material that Greenpeace predicts is used in 60% of modern clothing — emits more greenhouse gases (like CO2) than alternative materials, like cotton (via World Research Institute). Also, when washed, polyester releases microplastics (which can take decades to centuries to break down) into the ocean, harming marine and human species when ingested, per The Guardian. Apart from this, the fashion industry is the second largest industry in terms of its water consumption, which makes sense considering that just one pair of jeans requires nearly 2,000 gallons of water to produce (via National Geographic).
Is Shein’s speediness ethical?
There was, of course, almost immediate backlash on social media and, according to CBS News, users accused Shein of anti-semitism and demanded people stop supporting their brand. Shein eventually removed the necklace from its website and apologized on social media, claiming on Instagram that the pendant represented a Buddhist symbol for “spirituality and good fortune.” On more than a few occasions, Shein has been accused of ripping off designs from both well-known names in fashion and lesser-known, independent stores and individuals. The low prices of Shein’s items — along with tags reading messages like “help” that have gone viral on social media (but have since been debunked) — have prompted questions and concerns about the work conditions in Shein’s factories. Mélo is one of the thousands of influencers on TikTok and Instagram who works with Shein to post “haul” videos, where she tries on piles of clothes, invites followers to visit Shein’s pop-ups, and promotes their sale events. It’s a social media strategy that has been wildly successful for the company, what is blockchain technology how does it work pushing Shein to the top of the fashion ladder—and making it the world’s most popular fashion brand in 2022.
The Covid crisis provided the company with a sales boost, says Richard Lim, best stock picking services 2021 2020 chief executive of independent consultancy Retail Economics. “I think it’s good, as long as they show that they are making an effort to improve their environmental and work practices.” Others say that such a big listing in London could be very beneficial though. It may bring more attention to the company’s operations and provide a boost for the UK economy, particularly as the London Stock Exchange has been struggling to attract fast-growing companies.
Its growing US presence comes at a time when Shein is already attracting the attention of regulators. In January, Congress introduced the Import Security and Fairness Act, which, if signed into law, would eliminate the tax exemption for packages from China worth less than $800. It would also require Customs and Border Protection to collect more information on those kinds of shipments. Earl Blumenauer, the Oregon congressman who introduced the bill, told me that Shein is an especially large beneficiary of the tax exemption and expressed concerns about the business as a whole. “They’ve got it set up at an industrial scale, to take advantage of modern technology and the cheapest possible manufacturing operations, and there’s no guarantee that they’re following the rules,” he said.
