Market analysts are skeptical about Shein’s assurance to cut clothing waste but the fashion brand that is second only to Inditex in revenue is still churning out thousands of designs per day.
Its strategy of introducing thousands of new designs each day at low rates lures consumers to buy new offerings while discarding the previous slightly used apparel. Shien’s reputation as a responsible fashion brand is very low in the fashion world. It scored only 7 out of 100 in the latest Transparency Index of the Fashion Revolution.
The company that is headquartered in Singapore made $22.7 billion in revenues last year. The sustainability watch dogs consider Shein as prime contributor to millions of waste textiles sent to Global South.
The company has responded to the criticism by setting up a fund to help countries manage clothing waste. But it is trialling close competitors in enabling customers to sell used clothes. Still the brand claims waste from unsold clothes is in single digit.
The sales of $10 tops and $15 dresses that Shein held on August 24 have sent the value of Shein, the Chinese-owned brand selling ultra-fast fashion to the West, soaring since it launched in 2017 in the U.S. Churning out thousands of new designs a day, Shein has a direct selling model that targets its millions of social media followers.
The privately owned company, is is currently valued at more than $60 billion. It is negotiating with banks to launch an IPO in the United States.
Analysts doubt Shien commitment to reduce waste
