Chinese fast-fashion retailer Shein has admitted two of its sites breached local labor violations and that it will be investing $15 million to improve the working standards at its factories.
Shein launched an investigation after U.K. Channel Four documentary Untold: Inside The Shein Machine alleged that workers were subject to 16-hour-long days, got one day off a month, and earned wages of around 4,000 yuan ($572) per month to produce hundreds of garments for the online retailer each day.
In an independent audit, commissioned by Shein and carried out by Intertek and TUVR, the company found that the workers at two of its factories were working 12.5- to 13.5-hour-long days, which it notes is “significantly less than claimed in the documentary,” but still more than what is legally permitted by local law.
Shein said it would be cutting orders from the two problematic factories and is giving them until the end of the year to correct the problem and comply with local labor laws.
In China, workers are allowed to work up to eight hours a day, with three additional hours of overtime, and are promised at least one day off a week.
Shein also said in a statement that workers at the factories were either given two to three days off a month or had no fixed structure for days off at all.
The retailer denied other allegations made by the documentary and claimed its wages at the Chinese factories featured in the documentary were “significantly” higher than the local minimum wage in Guangzhou.
Shein said the workers at the factories took home an average of 9,816 Yuan ($1,404) a month and that they were paid for each step of the garment’s production process rather than the 1p per completed item, which the documentary alleged.
The documentary also claimed that workers’ first month’s wages were withheld and that mistakes made in the production process were deducted from workers’ wages. Shein said in a statement that “the claims that factories withhold workers’ salaries or illegally deduct wages are also untrue.”
Shein’s infinite stream of cheap clothing catapulted the company to a $100 billion valuation in April this year and gave it the reputation for being “Zara on steroids.”
The company has had an excessive influence on platforms like TikTok with “#Sheinhauls”—videos of influencers unboxing and trying on hundreds of articles of Shein clothing—notching billions of views despite the growing number of reports of the company’s labor violations, design theft, and environmental controversies.
Where is the $15 million going?
Shien plans to spend $15 million over the next three to four years to cover “physical enhancements” to supplier factories, increase the frequency of unannounced spot checks, and provide better training for factories to ensure they comply with laws and regulations.
Adam Whinston, the global head of ESG for Shein, said in a statement that “through Shein’s responsible sourcing (SRS) program, we have been working diligently with our contracted partners to improve welfare and working conditions.”
Whinston says Shein is looking to double its investment in the SRS program and has launched a system that allows workers to submit anonymous complaints through email, phone, or WeChat to improve supplier management further.
Shein’s track record
Shein’s environmental and labor records are the elephant in the room for the brand’s young shoppers.
The company website’s first FAQ listed under its media section is titled: “What are the labor conditions at Shein?”
On the following page, Shein answers that it “is committed to upholding high labor standards across our supply chain. We enforce a strict Code of Conduct for all suppliers, which is in compliance with local labor laws.”
The Channel Four documentary was not the first media exposé to highlight Shein’s spotty labor practices.
In a separate report by Public Eye published in November 2021, undercover investigators also found workers clocking in 11- to 13-hour days, mostly seven days a week, with no premium for overtime.
The company has also been criticized for having anoutsize environmental footprint. Despite claiming in its 2021 sustainability report that it is “committed to lowering emissions and reducing waste at every stage” of its supply chain, just last week it was accused by the EU of breaching regulations by using hazardous and toxic chemicals in its clothes-making process.
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Fast fashion is a term used to describe the clothing industry's business model of replicating recent catwalk trends and high-fashion designs, mass-producing them at a low cost, and bringing them to retail stores quickly, while demand is at its highest.
giant Shein investigated its own factories after damning report on working conditions—and the results are costing $15 million to fix. Garment workers in a factory that supplies Shein in Guangzhou, China.
A lengthy investigation by Wired first chronicled how both laborers and consumers suffered from the production of its clothes, while a documentary by the U.K.'s Channel 4 found that Shein employees were working 75-hour shifts with very little time off.
The environmental impact of SHEIN is one of the primary issues. SHEIN manufactures a tonne of apparel as a fast-fashion company, much of it is produced from synthetic materials that do not biodegrade. Also, the business's manufacturing and shipping methods could pollute the air and water.
The fast-fashion company has come under fire for accusations of mistreatment of Uyghurs, a marginalized group in China, and for allegedly falsifying reports of forced or underpaid labor of its supplier factories, some of which are allegedly located in the Xinjiang Uyghur Autonomous Region of China.
Indeed's Work Happiness survey asked over 39 current and former employees whether they feel they are paid fairly for their work. Of the respondents, 36% said that they strongly agreed or agreed that they are paid fairly. Learn more about how happy people feel at SHEIN.
By outsourcing labor, clothing retailers can cut costs and boost profits by paying workers less. And, when labor costs are cut, product costs can be cut, too, leading to super affordable clothing. In short, Shein produces its clothes in generic wholesale factories to keep its costs at a minimum.
For many people buying from the site, Shein's trendiness overweighs concerns about quality: purchases are quickly discarded and replaced to keep up with inexhaustible, short-lived microtrends.
Chris Xu, the founder and billionaire behind the company, primarily owns SHEIN. SHEIN leverages a real-time retail business model, where fashion trends are created out of social media platforms like TikTok, which are quickly turned around as products available for shopping online.
Shein can offer such low prices because it's exclusively an online retailer, so it has fewer overhead costs. It can quickly capitalize on trends without worrying as much about inventory. Shein can also do this because it controls its own supply chain.
In addition to the company claiming it "never engages in child or forced labor," its website states: "We regularly evaluate and address human trafficking and slavery risks in product supply chains through in-house inspectors who are tasked with investigating internal or third-party reports of this nature."
However, just weeks before, Shein had been the focus of an investigation that found evidence of labor abuse in its supply chain. In at least two of its Chinese factories, the report found that workers were being made to do 18-hour days, seven days a week, with only one day off per month.
In October 2022, Chinese fast-fashion conglomerate Shein once again found itself facing allegations of unethical business practices, just another on their long laundry list of wrongdoings that include copying small businesses, allegations of modern slavery and violating labour laws.
Unavailability of warehouses: The SHEIN supply chain lacking a warehouse can be a severe weakness for the organization. The availability of proper warehouses makes the entire delivery process fast and reliable because the information is available for customers at every step.
Employees at one factory were working a maximum of 13.5 hours per day, with at least two to three days off per month, the statement claimed. At another factory, staff were found to be working 12.5 hours a day with no fixed schedule for days off.
China-based online fashion retailer Shein has signed a licencing agreement with Reliance Retail to re-enter the Indian market. The Economic Times reported that Reliance's retail arm, Reliance Retail Ventures Limited (RRVL), will leverage Shein's technology and trademarks as part of the agreement.
Is SHEIN a good company to work for? SHEIN has an overall rating of 3.4 out of 5, based on over 185 reviews left anonymously by employees. 49% of employees would recommend working at SHEIN to a friend and 53% have a positive outlook for the business.
If you are from the US and ordering through the app, Shein will automatically get your orders from their warehouse in the US. It is located in Los Angeles. The clothes from their warehouse in Foshan are shipped to their LA warehouse.
Are Romwe and SHEIN the same? Romwe and SHEIN have a lot more in common than just their styles, prices, and business models. Romwe was acquired by SHEIN in 2014.
Despite gargantuan profits, SHEIN HAS been accused of stealing designs from small independent labels, selling offensive items including Islamic prayer rugs as decorative mats and swastika necklaces, selling items containing unsafe amounts of lead, and forcing garment workers to work in extremely unethical conditions.
"This campaign comes on the heels of the US government's renewed scrutiny on SHEIN's close business ally TikTok, with the White House announcing TikTok must sell or face a nationwide ban," said Shut Down SHEIN of its attempt to do as its org's name suggests.
Shein was famously banned in India along with 58 other apps in June 2020 by the Government of India. The ban on Shein and other Chinese apps came after a border dispute between India and China in mid-2020, as their bilateral relations worsened.
Shein, which was founded by Chinese entrepreneur Chris Xu, initially created a cult following for its fast-fashion apparel and has since branched out into other offerings, such as home goods.
See how SHEIN compares to similar products. SHEIN's top competitors include Lazada, Verishop, and Wish. Lazada is a Southeast Asia-focused eCommerce retailer that offers a shopping experience with brands and types to choose from, such as mobile phones, tablets, home appli…
They use harmful materials. One of the reasons Shein can offer such cheap clothes, is because they use a lot of synthetic fabrics like polyester and nylon. You can get rid of your fast fashion pieces after one season, but clothing made from polyester take 20 to 200 years to decompose.
“It's not lucrative for them to sell in China,” said Schmidt. “[And] these products that would seem cheap to us are not as cheap to [consumers] in their home country.” Instead, Shein concentrates on exports, naming Europe, the United States, Australia and the Middle East as key markets.
Shein offers more affordable and high-quality clothing than Amazon. It also has a wider clothing selection than Amazon. However, Amazon sizes are way more inclusive than Shein', from XXS to 10XL. So, if you're looking for trendy fashion on a low budget, you should probably go with Shein.
Forever 21 insists that all product suppliers ensure that their employees work in safe and healthy environments and that their legal rights are respected and protected. Forever 21 also shares the goal of eliminating child labor and forced labor.
A "sweatshop" is defined by the US Department of Labor as a factory that violates 2 or more labor laws. Sweatshops often have poor working conditions, unfair wages, unreasonable hours, child labor, and a lack of benefits for workers.
A lawsuit it filed in December in the U.S. District Court of Illinois pits the company against Temu, the Chinese fast-fashion rival whose Super Bowl coming out party catapulted its ultra-cheap clothing into the U.S. consumer consciousness.
Conversation. We've removed the item out of respect for our community and want to clarify we never got the artist's permission to use the art which was not meant for commercial use. So you never got permission and still used it?
The refund will be issued to the original payment method or your SHEIN Wallet, as per your request, for SHEIN products, and to the original payment method, for Third-Party Sellers' products. Unfortunately, due to transportation delays, your refund may require an additional 3-5 days to process.
Employees at one factory were working a maximum of 13.5 hours per day, with at least two to three days off per month, the statement claimed. At another factory, staff were found to be working 12.5 hours a day with no fixed schedule for days off.
How Much Does Gucci Pay? Gucci pays $28,650 a year, on average, or $13.77 an hour. Gucci pays workers in the bottom 10th percentile under $19,000 a year, while the highest earners in the top 90th percentile make over $42,000.
The federal minimum wage is $7.25 per hour. This rate applies to covered nonexempt workers. The minimum wage for employees who receive tips is $2.13 per hour. The amount of tips plus the $2.13 must reach at least $7.25 per hour.
Xu is the founder and chief executive of Shein Group, the Chinese fashion retailer that was valued at $100 billion in an April 2022 funding round. The online seller was founded in Nanjing, China in 2008 and by 2022 was the largest fast fashion company in the US market. Shein Group had revenue of $22.7 billion in 2022.
At one of the factories, workers get a base salary of 4,000 yuan per month — the equivalent of roughly $556 — to make at least 500 pieces of clothing per day, but their first month's pay is withheld from them, per the investigation.
Introduction: My name is Saturnina Altenwerth DVM, I am a witty, perfect, combative, beautiful, determined, fancy, determined person who loves writing and wants to share my knowledge and understanding with you.
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