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Tue, Jan 14 | 9:20 pm

Behind the Bargains: A Look at Shein’s Labor Practices in China

by | Jan 14, 2025 | 0 comments

The rhythmic hum of sewing machines fills the air in Guangzhou’s Panyu district, the epicenter of production for Shein, the fast-fashion giant. Known as the “Shein village,” this bustling network of over 5,000 factories churns out clothing for over 150 countries, catering to a global audience hungry for affordable fashion. However, behind the glamour of £10 dresses and £6 sweaters lies a labor force enduring grueling hours and minimal pay.

Factory workers in Panyu often work 75-hour weeks, far exceeding the 44-hour legal limit set by Chinese labor laws. Many report having only one day off per month. Compensation is based on output: a worker sewing t-shirts might earn less than a dollar per piece. For many, this is their lifeline to send money back to families in rural provinces, despite the long hours and meager wages. While these practices are not uncommon in China’s industrial hubs, they raise ethical concerns given Shein’s meteoric rise and international dominance.

Shein, founded in China but now headquartered in Singapore, achieved a valuation of £54 billion ($66 billion) in 2023 and is eyeing a potential public listing. Yet, its success is shadowed by allegations of forced labor and worker exploitation. Recent reports have revealed instances of child labor within its supply chain, further tarnishing its reputation. Advocacy groups and critics argue that Shein’s practices epitomize exploitation, with workers bearing the brunt of low production costs.

The company has stated its commitment to improving governance and supply chain compliance, investing millions to address these issues. However, challenges persist. Critics point to Shein’s opacity, particularly concerning its sourcing of materials like Xinjiang cotton, which has been linked to forced labor allegations. Transparency, experts argue, will be crucial for Shein’s long-term credibility, especially as it moves toward an IPO.

Despite the controversies, Shein’s business model thrives on its rapid-response supply chain. Orders are dictated by real-time consumer demand, allowing factories to adjust production swiftly. While this system ensures profitability and global reach, it comes at a human cost. For workers in Guangzhou, Shein represents both opportunity and hardship—a paradox that underscores the hidden price of fast fashion.

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