(qlmbusinessnews.com . Tues 14th Jan, 2025) London, UK —
Inside Shein's Factories: The True Cost of Fast Fashion
The rhythmic hum of sewing machines is a daily soundtrack in Panyu, a bustling neighbourhood in Guangzhou, southern China, dubbed the “Shein village.” This warren of factories churns out garments that fill wardrobes in over 150 countries, underpinning Shein’s meteoric rise as the world’s largest fast-fashion retailer.
Reporters recently visited 10 of these factories, speaking with owners and workers alike. The findings highlight the stark realities of Shein’s supply chain: employees working up to 75 hours weekly, often with only one day off a month, in clear violation of Chinese labour laws.
While such working conditions are not uncommon in Guangzhou, they add to mounting concerns about Shein’s labour practices. The company has faced criticism over allegations of forced labour and instances of child workers found in its supply chain.
Despite these challenges, Shein has become a behemoth, valued at £54 billion in 2023, and is eyeing a potential listing on the London Stock Exchange. The company's growth is driven by a massive online inventory, ultra-low prices, and rapid production capabilities made possible by its “on-demand” supply model.
Workers in Panyu earn per piece, making items like T-shirts for a mere 1-2 yuan each. For many, the long hours are a means to support families in rural China. But these gruelling schedules and low wages prompt questions about the ethical cost of Shein’s success.
Amid the criticism, Shein maintains its commitment to ethical practices, stating that it has invested millions in governance and compliance. Yet rights groups argue that significant improvements are needed to ensure fair treatment of workers.
As Shein prepares for a public listing, its reputation hinges on transparency. Experts suggest the company must fully disclose its factory list and address allegations of forced labour linked to Xinjiang cotton. For now, Shein remains a polarising force: a giant of the fast-fashion world, built on the backs of tireless workers in Guangzhou.
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