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Wednesday, 1 February 2023

Ultra-fast fashion comes at a hefty price

Shein’s ultra fast-fashion is as popular as it is unsustainable: Chinese retailer Shein is at the forefront of a new wave of fast-fashion companies that are making the clothing business cheaper, faster, and less sustainable than ever before. Founded in 2008, the fashion giant is valued at some USD 100 bn and continues to generate bns of USD worth of annual sales of low-cost clothing through its online store. But reports are mounting that scrutinize the company’s alleged labor violations and environmentally damaging practices, which some critics say are on a larger scale than any of its fast-fashion peers.

Shein is deploying a tried and tested fast-fashion business model, on steroids: Similar to how most fast-fashion retailers operate, Shein’s business model depends on providing a constantly changing inventory of clothes at an affordable price point. But the company, which holds some 28% of the fast fashion market in the US — pushes the model further than most. Shein releases some 700-1k new items every day and most of these new releases don’t spend long on the company’s virtual shelves — about 70% of its products in stock are less than three months old and only 6% of its inventory remains in stock for more than 90 days.

It’s been the target of serious accusations of worker mistreatment: In an investigation at two factories that supply clothes to Shein, undercover reporters discovered that workers were being severely mistreated, in violation of Chinese labor laws. Working 18-hour days with only one day off per month was the norm at these facilities, while workers had two-thirds of their daily wages docked if they made a mistake on clothing items, the investigation uncovered. Swiss watchdog group Public Eye reportedly found repeated fire hazards in the form of large clothing bags blocking the hallways and exits to some buildings.

And it's no small contributor to harmful emissions and waste: A separate investigation into Shein’s manufacturing practices found that the company’s use of polyester and oil is responsible for the release of some 6.3 mn tons of CO2 every year — the same amount of CO2 as 180 coal-fired power plants, according to a report (pdf) published on sustainability in fashion by the Changing Markets Foundation.

Fast fashion has long been scrutinized for its environmental practices: The fashion industry is responsible for up to some 8-10% of global carbon emissions and 20% of wastewater globally. And at current levels of production, the industry is on track to grow its greenhouse gas emissions by over 50% by 2030.

And its endemic waste problem: Since 2000, the number of new garments produced annually has doubled to around 100 bn and some 87% of all textiles are eventually discarded and find their way into landfills or end up being incinerated.

In some instances, Shein has been found to use dangerous materials in their clothing: A CBC Marketplace investigation last year found unsafe levels of harmful chemicals in about one in five fast-fashion products, including from Shein. One Shein toddler jacket contained about 20 times the amount of lead that Canadian health standards say is safe for children. The company removed the offending items from its stock.

But it’s still drawing mns of customers: Shein’s edge is no doubt the fact that its sells on-trend garments at a substantially lower price than many other fast fashion retailers, which for many consumers is an irresistible selling point. Add to that the company’s aggressive marketing campaigns like the wildly popular #SHEINHAUL on TikTok, where people post videos of themselves unpacking large orders, and the company’s apparent invincibility in the face of controversy starts to make some sense.

Shein has since come out and pledged to do better for workers in its partner facilities and the environment: The company late last year said that it plans to reduce its supply chain emissions by 25% by 2030 and will spend some USD 7.6 mn on a partnership with the nonprofit Apparel Impact Institute, which helps manufacturers create efficiency schemes across their supply chains, to make good on this pledge. Shein also said that it would require all its suppliers to become compliant with a code of conduct based on International Labor Organization principles and will run more audits of its suppliers’ facilities.

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