Shein: The clash of models

In an article published in Challenges, Florent Berckmans, Operations and Strategy Partner at Eight Advisory, comments on the latest retail news.

The fast-growing Chinese e-commerce company Shein is working hard to improve its image in France in preparation for its IPO on the London Stock Exchange with a target capitalisation of 60 billion euros. Founded in Nanjing in 2008, Shein has experienced breathtaking growth, with profits rising from 700 million to 2 billion dollars in two years, and now employs 11,000 people. 

The company’s image was damaged by the British documentary Inside the Shein Machine, which exposed the deplorable working conditions of the workers. 

According to Marion Bouchut, spokesperson for Shein in France, 95% of the factories were audited by independent bodies in 2023. Nevertheless, the company, which produces 7,000 new models every day, continues to come under pressure from non-governmental organisations and associations concerned about its environmental impact. Shein is also targeted by the Anti-Fast Fashion Act and could be subject to European customs duties. 

“If their image is disastrous, it is because we are experiencing a battle of the models in retail, but also because of their lack of transparency,” analyses Florent Berckmans, Partner at Advisory. French brands have invested heavily in corporate social responsibility (CSR) and the hyper-growth of Shein raises questions. 

Read the full article by Laure Croiset, published in Challenges on September 22,  2024. ( French content )