Contrary to what Shein, the ready-to-wear manufacturer, aspired to, a promotional campaign launched by the Chinese giant in partnership with influencers from America sparked widespread anger on social media because of what they considered misleading from the company, which faces allegations of exploitation of cheap labor and minors and the environmental impacts it causes.
And in the middle of this month, 6 well-known influencers on social media paid a paid visit to the city of Guangzhou in Guangdong Province, southwest China, to one of the Shein factories, which controls an important market share in the ready-made clothing market in America and around the world due to the low prices of its products and the different types of them.
For 4 consecutive days, the influencers meticulously captured their luxurious first-class flights, indulgent stays at opulent hotels, and delightful dining experiences at high-end restaurants. Additionally, they offered overwhelmingly positive evaluations of the company’s factories and shared heartfelt testimonials from workers, expressing their admiration for the excellent working conditions. These influencers were genuinely surprised by the stark contrast between the negative portrayal of the company by Western media and the remarkable reality they experienced firsthand.
Influencers and the company alike came under fire on social media, with campaign participants eventually retracting their “in partnership with Shein” posts.
A number of social media influencers interested in the sector revealed data about what is alleged to be one of the company’s industrial units, as they showed that the matter is related to a “model unit” that does not reflect the real working conditions in the rest of the company’s factories.
Bulk criticism
In 2022, the British Channel 4 released a documentary called “Inside The Shein Machine”, in which it used secret cameras and revealed that the company exploits workers by forcing them to work for 18 hours continuously, in exchange for only one rest day per month, as each worker producing about 500 garments a day for little wages.
The difficulties that Shein faces do not stop at social media, as members of the US Congress have submitted two proposals against the company that, if approved, may lead to an increase in the cost of transporting goods to America.
Founded in 2008 as ZZKKO by search engine developer Chris Shaw, Shein later rebranded in 2011. During the Covid-19 pandemic, Shein gained significant market presence, capitalizing on the surge in online shopping driven by people’s commitment to staying at home. Its market share skyrocketed from 12% at the beginning of 2020 to an impressive 50% by November 2022.
Unlike its European competitors such as Zara and H&M, Shein has not been significantly affected by supply chain disruptions during the pandemic, due to its extensive network of second-party factories around the world.
Its competitive prices and the speed of shipping its products around the world contributed to improving its positioning, in addition to obtaining strong support from investment funds and venture capital, and in April 2022 the company’s valuation reached more than $ 100 billion.
