Chinese cut-price fast-fashion giant Shein defended its business model in an interview with AFP, saying demand-based production accounted for its low prices and not forced or cheap labour.
Founded in China in 2008, Shein has swiftly claimed a top place in the global fast-fashion marketplace, offering young social-media-savvy customers low-priced collections that turn over at a steady clip.
The firm’s strategy chief Peter Pernot-Day told AFP that Shein is “an on-demand manufacturer … the global pioneer of this technology” during a visit to Paris to attend the opening of a Shein pop-up store.
Testing products with a small run and spooling up production if there was demand meant Shein has eliminated “inventory risk”, Pernot-Day said, wiping out “the most significant component of garment cost”.
Shein’s sales rose 60 percent in 2021 to US$16 billion worldwide, Bloomberg reported – just behind Swedish high-street name H&M.
With 11,000 employees worldwide and counting, Shein has big plans for further expansion.
“It’s important to have teams that are in the countries and geographies and regions where we are doing business,” Pernot-Day said.
Pernot-Day also maintained that Shein has “no suppliers in Xinjiang” in northwestern China, where aid groups have accused it of using forced labour by Uyghur people.
US lawmakers recently asked the SEC financial watchdog to require an independent investigation into allegations of forced Uyghur labour at several brands including Shein.
The “localisation” strategy includes building a 40,000 sq m new warehouse in Poland allowing faster deliveries to the European market.
“There will be more,” he added.
Online, Shein plans to create a digital marketplace that will allow shoppers to buy other products from other brands through its platform.
Pernot-Day said the fashion and lifestyle shopping experience would resemble a “digital grand magasin”, referring to Paris’ swanky department stores.
