"Fast, Cheap, and Out of Control: Inside Shein’s Sudden Rise" 4 May 2022

[...] In April, Shein reportedly raised $1 billion to $2 billion in private funding. The company was valued at $100 billion—higher than the combined worth of fast-fashion titans H&M and Zara, and higher than that of any private company in the world besides SpaceX and Byte-Dance, the owner of TikTok. [...]

In a nearby neighborhood—a dense warren of small, informal factories, some housed in what seemed like repurposed residential buildings—bags printed with Shein’s name could be seen stacked on shelves or lined up on tables. Some facilities were clean and uncluttered. In one, women worked quietly at sewing machines, wearing sweatshirts and surgical masks. On a wall, Shein’s code of conduct for suppliers was prominently plastered. (“Employees must be over 16 years old.” “Pay salary on time.” “No harassment or abuse of employees.”) In another building, though, bags stuffed with garments were piled on the floor, requiring complicated footwork for anyone trying to get through.

Last year, researchers visiting Panyu on behalf of a Swiss watchdog group called Public Eye also found large bags of clothing blocking corridors and exits in some buildings, an apparent fire hazard. Three workers interviewed by the researchers said they typically arrived at 8 am and left around 10 or 10:30 pm, with breaks of around 90 minutes for lunch and dinner. They worked seven days a week, with one day off per month—a schedule that is prohibited under Chinese law. Whinston, the director of environmental, social, and governance, told me that after learning of the Public Eye report, Shein “took it upon ourselves to investigate.” [...]

Earlier this year, Shein published its own sustainability and social impact report, in which it committed to using more sustainable textiles and disclosing its greenhouse gas emissions. An audit the company conducted of its suppliers, though, discovered big safety problems: Of nearly 700 suppliers audited, 83 percent were operating with “major risks.” Most violations were of “fire and emergency preparedness” and “working hours,” but some were considerably more serious: 12 percent of suppliers had committed “zero tolerance violations,” which could include underage labor, forced labor, or severe health and safety issues. I asked the spokesperson what those violations were, but she didn’t elaborate.

Shein’s report states that the company will provide training to suppliers that commit serious violations. If a supplier fails to fix issues within an agreed-upon time—immediately, in severe cases—Shein might stop working with them. Whinston told me, “There’s more to do—just as any business needs to improve and grow over time.”

Labor rights advocates say that focusing on suppliers can be a superficial response that fails to address why dangerous conditions exist in the first place. Fast-fashion companies bear ultimate responsibility for pushing manufacturers to produce ever more quickly at cut-rate prices, they argue, a demand that makes poor labor conditions and environmental damage all but inevitable. This isn’t unique to Shein, but Shein’s success makes it especially notable. [...]