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The Rise of Shein: Inside Guangzhou’s “Shein Village”

The industrial hum of sewing machines fills the air in the Panyu district of Guangzhou, China, where the so-called “Shein village” serves as a hub for garment production. This bustling neighborhood is home to numerous factories that contribute to the inventory of Shein, the world’s largest fast fashion retailer.

As early as dawn, workers begin their shifts, often exceeding 75 hours a week. Many workers reveal they have only one day off each month. The relentless pace highlights not only the demands of fast fashion but also raises significant questions regarding labor practices within Shein’s supply chain.

During a recent investigation, various factory owners and workers were interviewed, revealing a labor environment that remains largely unregulated despite existing Chinese laws that limit working hours to a maximum of 44 per week. According to one factory worker, “If there are 31 days in a month, I will work 31 days.”

Shein, valued at approximately £36 billion ($60 billion), has grown rapidly, but its surge to prominence has been accompanied by controversies surrounding labor treatment and compliance with labor laws. The company’s practices have come under scrutiny, especially after it was revealed that child labor was discovered in its factories last year.

In an official statement, Shein claimed to be dedicated to ethical labor practices, asserting its commitment to fair treatment of all workers and transparency within its supply chain. However, many workers still face harsh realities, earning meager wages through piecework agreements that may not even reach the legal threshold for a living wage. One woman from Jiangxi, for example, earns between one to two yuan (less than a dollar) per t-shirt and struggles to support her family back in her hometown.

Moreover, the factories in Panyu operate under severe time constraints. Orders can fluctuate based on trends, compelling factories to hire temporary workers to keep up with demand for certain items. This pressure on labor forces many to work excessive hours, with reports indicating that standard factory shifts run from 8 a.m. to well past 10 p.m.

As labor organizations and advocacy groups highlight these conditions, observers note that the local industrial culture often normalizes such exhaustion, framing it as necessary for economic survival in a competitive landscape.

Challenges Faced by Workers

In the narrow alleys of Panyu, job seekers gather around bulletin boards, assessing job advertisements and discussing potential wages. Some factories leverage their positions to negotiate unfavorable terms for subcontractors, often passing the burden of cost-cutting onto laborers.

Despite the challenges, Shein has carved out a niche where it can afford to offer deeply discounted prices—often below £8 per item—by relying on a vast network of efficient manufacturers. However, the consequences of such pricing structures directly challenge the sustainability of local labor practices.

Professor Sheng Lu, a fashion studies expert, emphasizes the importance of transparency for Shein moving forward. Notably, much of the scrutiny comes from accusations involving the sourcing of materials—particularly cotton from Xinjiang, a region mired in allegations of forced labor.

In light of these concerns, Shein’s upcoming potential listing on the London Stock Exchange serves as a pivotal moment. Analysts suggest that improved labor practices and full disclosure of supply chain details may be necessary to build investor confidence.

The Complexities of Fast Fashion

For many workers, the pressures of mass production under Shein’s business model also intertwine with aspirations of economic advancement. Some factory owners express ambivalence about their reliance on Shein’s orders, recognizing both the potential for profit and the constraints it imposes on their operations.

“Before Shein, we could set our prices and control our profits,” a factory owner reflected. “Now, we must adapt to their pricing structure.” This dynamic speaks to the broader implications of globalization and the nuances of supply chain management in the fashion industry.

While these working conditions remain contentious, there is also a sense of pride among some employees who believe in contributing to a global economy. Amid the long hours and insufficient wages, they find camaraderie and resilience among their peers.

As production continues well into the night, with some factories remaining active until midnight, one fact remains clear: the demand for inexpensive, fashionable clothing is not waning. Meanwhile, workers strive diligently to meet the requests of consumers in cities around the world, navigating the complexities and harsh realities of the fast fashion industry.

As Shein navigates its path forward, the spotlight on its practices serves as a crucial reminder of the need for ethical governance in global supply chains.

Source
www.bbc.com