Shein responds to accusations made against it during 2023
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Business |Interview
Shein, the beast to slaughter? In 2023, the Chinese ultra fast fashion e-tailer was the subject of much criticism and accusations. Not a month went by without the brand's image being tarnished by the news. Speaking to FashionUnited, Marion Bouchut, associate director, public affairs at Shein Europe, defended the brand and responded to the series of criticism it had faced over the period.
Was 2023 the year of Shein bashing?
We are aware that some people may have strong opinions. However, we have also observed that these opinions can be the result of a lack of knowledge or incorrect information, both about the brand and about the way we operate. This is understandable.
Shein is a young company and is not yet widely known in Europe. That's why, over the past year, we've taken initiatives to make ourselves better understood and to communicate more about the way we work, but also about our vision for the future in our sector.
For example, many people don't realise that we rely on an innovative small batch production model, which allows us to produce 'on demand' (in batches of just a hundred or so pieces), while minimising the wastage of excess stock. As a result, contrary to what you might think, our levels of surplus stock are actually much lower than the average for the traditional fashion retail industry.
Similarly, many people are unaware of the policies and systems we have in place to ensure that our suppliers meet our high standards of health, safety and compensation in the workplace. Many are also unaware that we work with globally recognised third-party auditing companies to verify, report and improve compliance throughout our supply chain.
We are working hard to make progress on our commitments in terms of social responsibility and sustainable development, to increase transparency. We always welcome the opportunity to explain our business and contribute to an informed discussion about the future of the sector.
In June, an organised tour of your factories by female influencers had sparked controversy.
We are committed to transparency and this initiative (the trip) was born out of the intention to show some of our influencer partners how we work. So that they can share their opinions with their followers.
While we recognise that it could have been better executed, it has only strengthened our commitment to providing the public with a better insight into our business model and small batch production system. In the months and years to come, we hope to have further opportunities to invite more partners, journalists and other stakeholders to see first-hand how we work.
In July, Shein was sued for infringement of intellectual property rights by young designers.
Shein respects creators and artists, as well as the intellectual property rights of others. We take all claims of infringement seriously. Designers and artists work hard to create their work, and we have many initiatives in place to protect their efforts.
We continue to invest and improve our processes to detect and prevent infringements. We have a global team that ensures that the items listed on our platform are compliant and do not contain counterfeit elements. We also require our suppliers to comply with a code of conduct which includes certification that the products they manufacture do not infringe the intellectual property of third parties.
In the rare cases where our internal systems fail to identify potentially counterfeit items, rights holders can report suspicious listings via our dedicated IP complaints portal, and we take prompt action.
Temu, your direct competitor, sued you twice: firstly, in June, for breaching US antitrust legislation; and secondly, in December, for “mafia-like” practices. What can you say on these subjects?
Read the first article. Read the second article
We have no comment to make on the June trial. I refer you to an article published by Reuters on 27 October 2023 [Shein and Temu, owned by bitter rivals PDD Holdings (PDD.O), have asked to end their legal disputes in the US, according to documents, marking a truce, editor's note]. As far as the December lawsuit is concerned, we believe it is without merit and we will defend ourselves vigorously.
In November, France’s OECD opened an investigation against Shein. How has this been handled?
Shein responded quickly and met with the OECD's French National Contact Point (NCP) when we were approached in July. We cooperated fully and will continue to do so to answer any questions the NCP may have.
What about working conditions, for which you are regularly questioned?
Although Shein does not directly own any production facilities, we recognise that our responsibilities extend throughout our supply chains. Our policy and practice is to work with suppliers who share our commitment to responsible practices.
Our supplier responsibility standards stipulate that suppliers' employees may not work more than sixty hours per week (including overtime) and have at least one day off every seven days, except in emergency or unusual situations.
We make our suppliers aware of our standards through regular training sessions, taking into account the specific nature of their activities and local regulations. We carry out regular audits and take action when violations are identified. In addition, all new manufacturers with whom we contract must undergo an assessment audit as part of the integration process before starting to work with Shein.
In 2022, we conducted over 2,400 audits covering more than 1,900 contract manufacturers who account for around 84 percent of Shein brand products. More information on our supply chain management policies and programmes, including our audits, can be found in our latest sustainability report, available on our website.
How vigilant are you about protecting the environment?
Sustainability is a priority for us, and we have launched initiatives to reduce our environmental impact at every stage of the value chain. Last year, we published our Sustainability and Social Impact Report 2022. We also recently published our 2022 report, which is available on our corporate website.
We are committed to decarbonising our supply chain, sourcing responsible materials and protecting biodiversity and animal welfare through collective action. We have set targets that encourage our operational teams and supply chain partners to reduce the environmental footprint of our products and facilities:
As a leading global company, Shein takes its responsibility seriously to support the local communities in which we work, source and live, and to preserve our planet.