Topline
Shein, the China-based global fashion e-retailer that has come under fire for labor law violations and its environmental impact over the last two years, recently invited six influencers to tour one of its factories, innovation center and warehouse–which has been viewed controversially among social media users.
Influencers who toured Shein’s facilities are receiving backlash for promoting what viewers beleive … [+] was a model factory. (Photo by Jade Gao / AFP) (Photo by JADE GAO/AFP via Getty Images)
Key Facts
Six influencers visited China to tour one of Shein’s factories, innovation center and warehouse where clothing is designed, made, packaged and shipped.
Carbonari’s video and subsequent responses caused much uproar on Twitter due to people believing she and other influencers were shown a model factory and paid to promote propaganda.
The controversy stems from criticism that Shein has received as investigative reporting revealed the company’s use of quick, cheap labor violates Chinese labor laws and negatively impacts the environment.
More recently, a House committee report named Shein as one of the fast-fashion brands that have been evading U.S. tariff laws and violating human rights codes.
This trip comes ahead of the belief that Shein will go public.
Key Background
According to a since-deleted press release, Shein was founded in 2008 as SheInside by Chinese-American entrepreneur Chris Xu–whom Forbes estimated is worth $10.5 billion–with the intent to sell clothing for teenage girls and young adult women. By 2020, Shein was reportedly raking in nearly $10 billion in revenue. Earnest Insights reported the brand held 28% of the fast fashion market by June 2021. Shein is popular for its affordable clothes.
Tangent: Environment, Human Rights Controversy
Last November, Greenpeace Germany, an international climate and environment campaign organization, published a report that found 32% of the 47 Shein products it tested contained concerning levels of hazardous chemicals, such as phthalates, PFAs and lead, some of which even broke the European Union’s regulatory limits. An investigation from human rights and environment organization Public Eye revealed one company that owned seven workshops was employing over 200 people to produce 1.2 million articles of clothing per day, mainly for Shein. Further, it reported seeing barred windows and no emergency exits and the company’s alleged violation of Chinese labor laws, as employees explained that they work up to 75 hours per week, receive one to two off-days per month and did not sign employee contracts. Reuters reported Shein violated the UK’s Modern Slavery Act of 2015 by not publicly disclosing the working conditions of factories involved in its supply chain and ways it is combating forced labor, and falsely claimed to be certified by the International Organization for Standardization (ISO), a non-governmental global standards organization that says it does not issue certifications.
Surprising Fact
Shein has been able to avoid customs review and maintain cheap products through a U.S. tariff law loophole, according to the House Select Committee on the Chinese Communist Party. Because many of the packages total items cheaper than $800, Shein, along with fellow Chinese fast-fashion company Temu, has shipped packages to the U.S. without having to pay tariffs nor provide information on their labor practices due to Section 321 of the Tariff Act of 1930.
Contra
Shein has a Supplier Code of Conduct that requires its supplier partners—to which there are over 6,000 of them—to comply with local laws and regulatory requirements, including working hours. In its 2021 Sustainability and Social Impact Report, Shein said it used last-mile shipping providers who use environmental vehicles to decrease their greenhouse gas emissions, among other things, to protect the planet. Shein also launched a resale model last fall. Forbes has reached out to Shein’s communications team for comment.
