Key Highlights:
- Shein fails to give the complete supplier chain transparency needed by British law.
- Shein denied giving Businesshala its yearly income, stating that the company does not publicly disclose its revenue.
- Because of the company’s exceptionally low costs and Shein lacks of transparency, labor watchdogs have questioned how it manufactures its items so inexpensively.
No Public Disclosures
Shein, the fast-growing Chinese online retailer, has not made public disclosures regarding labor conditions in its supply chain, as required by UK legislation, and the business recently placed a misleading statement on its website. According to the parameters provided, Businesshala discovered that the manufacturers it employs are accredited by international labor standards authorities.
As part of the country’s Modern Slavery Act 2015, firms of a particular size in the United Kingdom must display on their websites the actions they are doing to fight forced labor. Shein’s “Social Responsibility” page claims that the company “never, ever” participates in a child or forced labor, yet it fails to give the complete supplier chain transparency needed by British law.
The legislation requires companies selling more than £36 million of goods per year internationally to post a statement dated for one fiscal year and signed by a director on a searchable link available in a prominent location on their home page. To put an end to modern slavery in its supply chain.
Shein denied giving Businesshala its yearly income, stating that the company does not publicly disclose its revenue. Analysts believe that the firm is worth $15 billion, with yearly revenues of at least $5 billion.
Shein’s representative stated that the company is in the midst of completing the disclosures needed by UK legislation and intends to post them on its website. “We are creating detailed policies, which we will put on our website in the coming weeks,” a spokeswoman for Sheen stated on Aug.
Lack of Transparency
Shein, whose official name is Zoetop Business Co. Ltd., has taken the fast fashion industry by storm in the last 18 months. The company’s Instagram and TikTok accounts have over 23 million followers, many of whom are displaying their low-cost clothing, such as $9 gowns and $15 shoes. According to online traffic tracking firm SimilarWeb, its website received more than 160 million visitors in June, surpassing Zara and H&M.
Because of the company’s exceptionally low costs and lack of transparency, labor watchdogs such as the Worker Rights Consortium and the Business and Human Rights Resource Center have questioned how it manufactures its items so inexpensively.
Shein lacks is based in China but exclusively sells to consumers outside of the nation over the internet. Sequoia Capital China and Tiger Global Management are among its major investors.
Some of Shein’s main competitors, like H&M, Xara-parent Inditex, ASOS, Boohoo, and Zalando, disclose more extensive information about their supplier chain on their websites, such as That factory list and code of conduct.
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