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Alongside a variety of new designs and frequently changing styles over the years, Chinese fast-fashion brand Shein has also garnered criticism for alleged labor violations and environmentally unsustainable practices.
But as the brand closes in on a potential initial public offering in the US later this year, bipartisan lawmakers are pushing the SEC to look into accusations against the retailer that claim “mistreatment of Uyghurs, a marginalized group in China.”
Shein, meanwhile, has denied all allegations. “We have zero tolerance for forced labor,” a company spokesperson told CNBC, claiming it is “committed to respecting human rights and adhering to local laws and regulations in each market we operate in.”
The retailer has also been on a mission to change its public perception. Earlier this year, for instance, Shein highlighted its ongoing incubator program for emerging and independent designers from various backgrounds, not just to deflect criticism for copying designs, but to establish itself as a supporter of diversity and inclusion. And to combat claims that it generates waste, it has intensified its investment in thermal digital transfer and supply chain technologies to reduce water waste and excess inventory.
Walk the talk: One of the retailer’s most talked-about initiatives has been its own peer-to-peer resale program, launched in October, which was slammed by critics.
“Fast-fashion companies’ business model relies on the production of cheap apparel made from cheap fabrics, so any attempt to become eco-friendly without a commitment to reduce manufacturing and daily product drops, as well as without investing in paying a fair, living wage, will be obsolete,” Anand Kumar, fast-fashion analyst at Coresight Research, previously told Retail Brew.
While not everyone is buying Shein’s rapid makeover, only time will tell whether the company can shift public perception before its IPO.—JS