Lawmakers worry Shein could become the next TikTok. Forced labor is a concern because the prices are so incredibly low, and shipping is free in most cases to the U.S. Data harvesting concerns are an issue with U.S lawmakers. The majority of Chinese clothing comes from the Xinjiang Province, where the US State Department claims a genocide is taking place. Uyghurs, a Muslim minority group, are frequently coerced into prison and work camps to create the identical commodities that are imported into the United States via these apps.
If the fast-fashion powerhouse uses restricted cotton from China’s Xinjiang area, three senators from the United States want to know. Following a Bloomberg article last autumn, Democratic Sens. Bill Cassidy, Elizabeth Warren, and Sheldon Whitehouse sent a letter to the corporation stating that they were “concerned that American consumers may be unknowingly purchasing apparel made in-part with cotton grown, picked, and processed using forced labor.”
In 2021, TechCrunch reported, “Shein overtakes Amazon as top shopping app on US app stores.” In May 2022, Market Place Pulse reported, Shein was previously the most-downloaded app in the shopping category but became No. 1 across all categories in the iPhone App Store on May 3rd. It first reached the top of the shopping category in May 2021 and was the second most popular shopping app globally in 2021. It still ranks No. 1 in the shopping category for dozens of countries.”
As of Aril 6th 2023, Shein has 28.5 million followers on Instagram. Amazon has 4 million followers, and on Google Play Shein has 100+ million downloads. Shein relies heavily upon social media and influencers to promote items.
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And as a result of investments, Shein’s value is currently estimated to be around $100 billion, according to a recent Bloomberg report. Shein does not, however, want to make its worth accessible to the general public.
The data shows just how powerful the Shein clothing app is. After SpaceX and ByteDance Ltd., the parent company of TikTok, Shein would rank as the third most valuable startup in the world if it reaches that $100 billion valuation. Additionally, the company is probably worth more than H&M and Zara put together after the most recent fundraising round.
Shein employees work seven days a week and for as little as $556 a month on average, according to an undercover investigation by Channel 4 and The i newspaper in the UK in October 2022. Female workers at certain workplaces washed their hair during their lunch break because they had no time to do it after their 18-hour workdays.
Social media videos that claimed Shein employees were including hidden messages in the clothing they created became popular in June 2022. According to reports, one of these tags had “need your help” scribbled inside the care directions. In a video posted to TikTok, Shein addressed these allegations. Shein denied the allegations.
Despite wage laws, a 2019 report revealed that Shein’s rival Fashion Nova was employing underpaid workers in Los Angeles factories as late as 2019. Some sewers received pay as low as $2.77 per hour, significantly less than the minimum wage. There is still a lot of ambiguity around Shein’s labor practices.
Shein published a “Sustainability and Social Impact Report” in 2021, indicating that it will concentrate on reducing carbon emissions and waste by using more sustainable materials. The majority of its products, meanwhile, are created with synthetic materials like nylon and polyester, and customers frequently lament the inconsistent quality. Shein has a track record of borrowing designs from less well-known brands and selling them cheaply.
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