Shein, a prominent online fashion retailer, has faced ongoing scrutiny regarding labor conditions within its supply chain. Recent investigations have highlighted concerns about excessive working hours and wages below the living wage standard in some of its supplier factories.
In May 2024, a report by the Swiss advocacy group Public Eye revealed that workers in certain factories supplying Shein were working up to 75 hours per week, with wages insufficient to meet basic living expenses. Shein responded by stating its commitment to improving labor conditions and emphasized that the report was based on a limited sample size. The company also noted that it had conducted numerous audits across its supply chain, finding that workers earned wages above the local minimum wage and higher than the living wage in Shenzhen. Shein has pledged to continue investing in strengthening governance and compliance among its suppliers.
In August 2024, Shein's 2023 sustainability report disclosed two instances of child labor within its supply chain. The company took immediate action by suspending orders from the involved suppliers, conducting investigations, and implementing corrective measures. Shein emphasized its zero-tolerance policy toward child labor and its commitment to ensuring fair treatment of workers.
As Shein explores potential expansion through an initial public offering (IPO), these labor practices have attracted the attention of policymakers and investors. In June 2024, U.S. senators urged the UK government to investigate Shein's labor practices ahead of its planned IPO in London. The senators expressed concerns about the company's alleged use of forced labor and other unethical practices. Shein has consistently denied these allegations, asserting its dedication to ethical business practices and compliance with international labor standards.
Shein has also faced criticism for its environmental impact. In 2023, Time magazine reported that the company was producing more than 6.3 million tons of carbon dioxide annually, primarily due to the rapid use of virgin polyester and large consumption of oil. In response, Shein launched a resale service on its U.S. app to enable the buying and selling of secondhand Shein fashion, aiming to address concerns about textile waste and promote sustainability.
As Shein continues to grow and expand its global presence, it remains under close examination regarding its labor practices and environmental impact. The company has stated its commitment to addressing these issues and improving conditions within its supply chain.