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Shein

OVERALL

Owned
SGP
Rating
Criticisms

Fast fashion

Founded in China in 2008 by Chris Xu, Shein has quickly become the world's largest fashion retailer, surpassing H&M and Zara. The company has no physical stores and exists almost entirely on social media. While production is still primarily in China, Shein moved its headquarters to Singapore in 2022 in an attempt to distance itself from China. Ships to 220 countries. Acquired 33% of Forever 21 parent company SPARC in 2023.

Zoetop Business Co Ltd   SGP     website      facebook   twitter

> About the Ratings

Company Assessment

PRAISE CRITICISM INFORMATION
Zoetop Business Co Ltd
Social Workers rights in China
In 2021 Public Eye investigated working conditions at Shein supplier factories in Guangzhou, China. Shein sources from a network of hundreds of small suppliers and sub-contractors, where workers usually have no employment contract, and no social security contributions. Workers commonly work 75 hours per week with no overtime premium and only one day off per month. Safety deficiencies abound. These are all violations of Chinese law.
Source: Public Eye (2021)
Social 4/100 in 2022 Ethical Fashion Report
Baptist World Aid Australia's '2022 Ethical Fashion Report' assessed 120 companies on their efforts to mitigate against the risks of forced labour, child labour and worker exploitation in their supply chains, as well as protect the environment from the harmful impacts of the fashion industry. Assessment criteria fall into five main categories: policy & governance, tracing & risk, auditing and supplier relationships, worker empowerment and environmental sustainability. This company received a score of 4/100.
Source: Baptist World Aid Australia (2022)
Business Ethics 7/100 in Fashion Transparency Index
The 2023 Fashion Transparency Index reviewed 250 of the world's largest fashion brands and retailers and ranked them according to how much they disclose about their human rights and environmental policies, practices and impacts. Brands owned by this company scored 7%, signifying it has little to no information about their supply chain practices or policies available to the public. The average score was 26% and the highest score was 83%.
Source: Fashion Revolution (2023)
Business Ethics Opaque and tax-optimised
In 2021 Public Eye scrutinised Shein's complex corporate structure. They found a great deal of offshore entities to disguise ownership and avoid taxes, with several Shein companies based in tax havens. A multitude of brands make the group even less tangible, with many brands sold by or through Amazon.
Source: Public Eye (2021)
Social Modern Slavery disclosure failures
Shein has not made public disclosures about working conditions along its supply chain that are required by law in the United Kingdom and Australia, and the company until recently falsely stated on its website that conditions in the factories it uses were certified by international labor standards bodies, Reuters found in 2021.
Source: Reuters (2021)
Social Breaching advertising codes
This company has been criticised for offensive advertising. In 2022 the Advertising Standards Bureau upheld complaints about two ads by this company on the grounds that they breached advertising codes. The ads were subsequently discontinued or modified.
Source: Advertising Standards Bureau (2022)
Social Forced labour concerns
Republican attorneys general from 16 U.S. states and two dozen U.S. representatives have expressed concerns over Shein's labor practices and sustainability. They are calling on the SEC to scrutinise Shein's supply chain, and to delay Shein's potential initial public offering until conclusive evidence of non-use of forced labor is provided.
Source: Freedom United (2023)
Business Ethics Social responsibility claims
This company has social responsibility claims on its website in the areas of community support, workers rights and sustainable practices.
Source: company website (2022)
Information Criticism of Shein - Wikipedia
Criticism of Shein includes intellectual property theft, 2018 data breach, criticism for offensive images, app prohibition in India, health and safety concerns, human rights violations, tax evasion, and amplification of fast fashion.
Source: Wikipedia (2022)

> About the Icons

Company Details

Founded 2008
Revenue 15 billion USD (2021)
Employees 100,000+ (2020)
Subsidiaries SPARC Group LLC (33% owned) 

Retail

Joint venture between Simon Property Group, a retail real estate company and Authentic Brands Group, a brand development company. SPARC stands for Simon Property Authentic Retail Concepts. In 2023 Chinese fast fashion company Shein bought a 33% stake.


  - Forever 21 Inc 

Youth fashion

Founded in California in 1984 by CEO Don Chang and his wife. About 60% of its apparel is manufactured in China. Operates about 500 retail stores around the world. Filed for bankruptcy in 2019 and acquired by Authentic Brands Group, Simon Property Group and Brookfield Property Partners in 2020. Forever 21 entered Australia in 2014, but left in 2017.


  - Eddie Bauer LLC 

Clothing retail

Acquired in 2021 by SPARC Group, a joint venture between Simon Property Group and Authentic Brands Group.

Contact Details

Address Singapore
Website www.shein.com

Products / Brands

Shein
Shein E-commerce
Shein Youth Fashion

SPARC (33% owned)
Brooks Brothers Menswear (formal)
Lucky Brand Denim
Nautica Outdoor Wear

Forever 21
Forever 21 Youth Fashion

Eddie Bauer
Eddie Bauer Outdoor Wear


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