Shein, a leading online fashion retailer, uncovered two instances of child labor within its supply chain during the first three quarters of 2023. According to Shein’s latest sustainability report, these violations were found through routine audits of its manufacturing partners.
Shein defines children as individuals under the age of 15, which contrasts with Chinese labor laws that set the minimum working age at 16. The company did not disclose specific details about the factories involved or the number of underage workers discovered.
Shein Suspends Orders After Child Labor Violations
In response to these findings, Shein took immediate action by suspending orders from the implicated manufacturers and conducting thorough investigations. At the time of discovery, Shein’s policy allowed manufacturers 30 days to address these violations. This process required terminating contracts with the underage employees, ensuring payment of outstanding wages, arranging necessary medical checkups, and assisting with repatriation to the children’s families.
As of October 2023, Shein revised its policy to impose stricter measures, mandating the immediate termination of any supplier found using child labor.
Despite these incidents, Shein reported no further cases of child labor in the fourth quarter of 2023. The company’s supply chain structure, which involves numerous independent manufacturers, poses challenges in consistently monitoring labor practices. Shein’s model includes a marketplace platform where products from third-party sellers are also featured, adding complexity to maintaining uniform labor standards.
Past Audits Reveal Ongoing Labor Concerns
Shein has faced ongoing scrutiny regarding its labor practices, similar to other ultra-fast fashion brands like Temu. In 2022, Shein pledged to invest $15 million to improve factory conditions and enhance audit processes following reports of excessively long working hours. However, investigations by human rights organizations, including a report by Public Eye, found that some workers in China still faced grueling conditions, with accounts of 75-hour work weeks and limited days off.
As a predominantly online retailer, Shein’s marketing strategy heavily relies on social media influencers who promote its affordable and trendy products. To counter negative perceptions, Shein has organized factory tours for influencers in China and hosted in-person events to engage with the public directly. Despite these efforts, Shein continues to encounter criticism over its labor practices and business model. Speculation has emerged about the viability of Shein’s plans to go public in the United States amid these controversies.
Meanwhile, recent reports indicate that Shein has filed for an initial public offering in London. In 2022, Shein was valued at approximately $66 billion, highlighting its significant market presence and consumer base.
