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Shein CEO Refutes Environmental Criticisms: Misunderstanding Due to Lack of Communication

Daniel Kim Views  

AP News

Donald Tang, Executive Chairman of Shein, has refuted criticism of the company’s environmental pollution, stating, “Our unfavorable reputation is due to a lack of understanding.”

According to the French daily newspaper Le Figaro on the 23rd (local time), Tang, who recently visited Paris, France, said in an interview, “The misunderstanding about Shein is mainly because the company did not communicate enough. Some might see Shein as a popular and cheap brand, but we are an exemplary company in reducing pollution.”

Tang argued, “The biggest problem in the ready-to-wear industry is too much waste and unsold products. Shein has revolutionized the industry with an on-demand production system to solve this problem.”

Tang explained, “While competitors impose their style vertically, we only make what customers want. We showcase a small amount of new products and produce in large quantities only if there is demand, so our inventory is close to 0.” He emphasized, “Shein is not about mass production, but rather a minimal production system.”

In response to criticism that Shein continuously launches cheap new products, fueling consumer buying frenzy, Tang countered, “Customers wear our clothes more often and for longer periods because they resonate with the styles we offer.”

In France, a law regulating fast fashion is being pushed forward. The French National Assembly has already passed a law imposing an environmental tax of 5 euros on products of fast fashion companies and banning advertisements of fast fashion products and companies. Companies like China’s Shein are expected to be heavily impacted if the law is finally passed in the Senate.

Since expanding into the U.S. and Europe in 2017 with a super-low price strategy, Shein has quickly established its presence and now has a larger market share in the U.S. than Swedish fashion company H&M and Spain’s national brand ZARA.

Last year, it recorded global sales of $45 billion and net income of $2 billion. It is pursuing an IPO on the New York or London stock market.

Daniel Kim
content@viewusglobal.com

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