The Hidden Costs of Your £10 Dress: The Truth Behind Shein’s Success

The bustling streets of Panyu, a neighborhood in Guangzhou, are home to the hum of sewing machines that define the region’s vibrant manufacturing industry. Here, factories operate around the clock, producing a vast array of garments—from t-shirts and blouses to shorts and swimwear—that will be shipped across the globe to meet the ever-growing demand for fast fashion.

This area is often referred to as the “Shein village,” as it is the center of production for Shein, the world’s largest fast fashion retailer. Shein, which was once a little-known company, has rapidly ascended to the top of the fashion world in just over five years, capitalizing on its speed and low prices. The company’s success is built on a complex network of factories and suppliers in Guangzhou, particularly in Panyu, where a relentless workforce churns out thousands of items each day.

Workers in Panyu, many of whom come from rural areas in search of better-paying jobs, endure long hours, often working up to 75 hours a week. According to reports from employees, many only have one day off each month, with no respite from the constant pressure to meet production quotas. “If there are 31 days in a month, I will work 31 days,” one worker shared with the BBC, highlighting the exhausting reality of factory life in the region.

The factories are critical to Shein’s operations, enabling the brand to offer an ever-changing collection of affordable fashion at a rapid pace. However, these working conditions raise significant concerns. The long hours and poor working conditions violate Chinese labor laws, which set limits on work hours and mandate breaks for workers. Despite these regulations, the widespread practice of overworking employees persists, reflecting the harsh realities of the global fast fashion industry.

Shein’s business model relies heavily on the efficiency and speed of its supply chain. By utilizing factories like those in Panyu, Shein can design, produce, and ship new collections to consumers worldwide in a matter of weeks—much faster than traditional fashion brands. However, this speed comes at a human cost. The workers, often underpaid and overworked, are the backbone of this global operation, but their stories remain largely unseen by the end consumers who purchase Shein’s inexpensive clothing.

In addition to its factories, Shein’s success also depends on the network of textile suppliers and labor markets that feed into its production process. The BBC’s investigation found that the working conditions in these supply chains are not unique to Shein. Guangzhou, as a major industrial hub, sees many workers enduring similar conditions across various factories and industries. Yet, Shein’s rapid rise and global reach bring the scrutiny and focus onto its operations more than ever before.

As Shein continues to grow, the questions surrounding its business practices grow louder. How much longer can the company sustain this model of low-cost, high-speed production? And, perhaps more importantly, how long will the workers in Guangzhou and other manufacturing hubs continue to bear the brunt of the pressure for affordable fashion?

Despite the increasing demand for transparency and ethical practices within the fashion industry, Shein’s practices reflect the darker side of fast fashion, where the pursuit of profit often comes at the expense of workers’ rights and well-being. The BBC’s investigation into Panyu offers a glimpse into the realities behind Shein’s success and the growing concerns over labor exploitation in the fast fashion industry. As Shein becomes a dominant player in the global market, the need for reforms and better working conditions within its supply chain becomes ever more urgent.

Shein, the privately-owned fast fashion giant, is now valued at approximately £36bn ($60bn), a testament to its incredible rise in the global fashion market. But as the company eyes a potential listing on the London Stock Exchange, its success comes with increasing scrutiny. The brand, renowned for its rock-bottom prices and lightning-fast production times, has been mired in controversy regarding its treatment of workers and allegations of forced labor, casting a shadow over its meteoric ascent.

Despite these concerns, Shein’s value continues to soar, outpacing established brands like H&M, Zara, and the UK’s Primark. This growth has largely been driven by Shein’s volume-based approach to fashion, with an inventory that runs into the hundreds of thousands and price tags that are hard to beat—£10 dresses, £6 sweaters, and prices that average under £8. These deep discounts are supported by its extensive network of suppliers, particularly in the Shein village, an area in Guangzhou, China, where about 5,000 factories work to meet the company’s insatiable demand.

However, last year, Shein faced a significant blow to its reputation when it admitted to finding children working in its factories in China, a discovery that raised questions about its labor practices. Despite this, Shein remains defiant, maintaining that it is committed to ensuring the fair and dignified treatment of all workers within its supply chain. The company issued a statement to the BBC, saying, “Shein is committed to ensuring the fair and dignified treatment of all workers within our supply chain” and emphasized its investment in governance and compliance efforts.

The company also stated that it works with auditors to ensure compliance with its code of conduct and strives to set the highest standards for pay. Yet, the long hours and poor working conditions, as reported by factory workers, tell a different story. Many laborers in the Shein village work upwards of 75 hours a week in conditions that contravene China’s labor laws, with limited days off. The demand for quick production often results in a chaotic, non-stop cycle of work, with factory doors open around the clock to accommodate endless deliveries and shipments.

The factories, once residential buildings, have been hollowed out to create makeshift production spaces, filled with sewing machines, fabric rolls, and overflowing bags of material scraps. As night falls, the pace doesn’t slow down. The workers continue laboring well past 10 PM, with trucks arriving late into the night, sometimes so packed that bolts of fabric spill onto the factory floor. These factories, integral to Shein’s model, operate under constant pressure to deliver mass-produced garments at an astonishing speed, keeping the brand’s shelves stocked and its prices low.

Despite its public statements about adhering to ethical standards, Shein’s rapid success raises important questions about the human cost of its business model. As demand for cheap, trendy clothing continues to rise, the workers in places like Shein village are left to bear the brunt of the brand’s success. The factory conditions in Guangzhou, where long hours and low wages are the norm, paint a stark contrast to the glossy image of affordable fashion sold online.

As Shein moves toward an IPO, the company’s handling of labor rights and supply chain transparency will be under intense scrutiny. Will the brand continue to prioritize speed and low costs over the well-being of its workers, or will it make meaningful changes to address the growing concerns surrounding its practices? Only time will tell, but the pressure to balance profit with ethical responsibility is mounting for this global fashion behemoth.

In the industrial heart of Guangzhou, the constant hum of sewing machines and the relentless pace of garment production form the backbone of Shein’s success. But behind the glossy online ads and rock-bottom prices lies a harsh reality for the workers powering this fast fashion empire.

A 49-year-old migrant worker from Jiangxi, who declined to share her name, describes her typical workday. “We usually work 10, 11, or 12 hours a day,” she says. “On Sundays, we work around three hours less.” She, like many others in Panyu, the district known as the “Shein village,” is part of the vast, often invisible, labor force that fuels the global supply chain of the fashion giant.

The factory where she works is part of a sprawling network of contracted garment producers. Some factories are small, others are large, but all are dependent on the whims of the fashion market. When a product becomes popular, like a pair of chinos, the demand increases, and so too does the production. Factories hire temporary workers to fulfill orders that their permanent staff cannot meet.

In an alleyway lined with bulletin boards, workers gather each day to browse job listings, assessing job opportunities and wages. It’s here that the migrant worker from Jiangxi is looking for a short-term contract, hoping to find enough work to send money back to her children, who live with their grandparents. “We earn so little. The cost of living is now so high,” she admits, her voice tinged with resignation.

She explains the pay structure: workers earn based on the number of items they produce. For simpler garments like t-shirts, the pay is about one to two yuan (less than a dollar) per piece. “I can make around a dozen in an hour,” she says, calculating the potential earnings for each task. The workers carefully inspect garments, like the chinos hanging on the bulletin board, as they determine which items are worth their time. Stitching quality and item complexity directly impact their earnings, as each garment carries a different pay rate based on its level of difficulty.

Panyu, a district that feels like the industrial lifeblood of Shein, pulses with the activity of these workers. In the mornings, the alleys fill with people hurrying to work or rushing to grab a bite from local street vendors offering dumplings, soybean milk, and eggs. Scooters whiz by, transporting workers to the factories where their labor will contribute to the endless cycle of garment production that fuels Shein’s rapid turnaround of trendy clothes.

The conditions are far from glamorous. Workers like the one from Jiangxi endure long hours in factories where their wages are tied to the speed and quantity of their output, rather than an hourly rate or standard pay. Temporary workers, often migrants from rural areas, form the backbone of this system, which has allowed Shein to create an immense inventory of inexpensive clothing and deliver it to consumers at breakneck speed.

This informal labor market, in the alleys of Panyu, represents just one facet of Shein’s extensive, yet opaque, supply chain. The low wages, long hours, and reliance on temporary workers are critical to maintaining the cost structure that allows Shein to dominate the global fast fashion landscape. However, as Shein continues to expand, questions about the sustainability of such practices and their impact on workers’ lives become more pressing.

Courtesy: ABC News (Australia)

References

Mukesh Singh Profile He is an IITian, Electronics & Telecom Engineer and MBA in TQM with more than 15 years wide experience in Education sector, Quality Assurance & Software development . He is TQM expert and worked for numbers of Schools ,College and Universities to implement TQM in education sectors He is an author of “TQM in Practice” and member of “Quality circle forum of India”, Indian Institute of Quality, New Delhi & World Quality Congress . His thesis on TQM was published during world quality congress 2003 and he is also faculty member of Quality Institute of India ,New Delhi He is a Six Sigma Master Black Belt from CII. He worked in Raymond Ltd from 1999-2001 and joined Innodata Software Ltd in 2001 as a QA Engineer. He worked with the Dow Chemical Company (US MNC) for implementation of Quality Systems and Process Improvement for Software Industries & Automotive Industries. He worked with leading certification body like ICS, SGS, DNV,TUV & BVQI for Systems Certification & Consultancy and audited & consulted more than 1000 reputed organization for (ISO 9001/14001/18001/22000/TS16949,ISO 22001 & ISO 27001) and helped the supplier base of OEM's for improving the product quality, IT security and achieving customer satisfaction through implementation of effective systems. Faculty with his wide experience with more than 500 Industries (Like TCS, Indian Railways, ONGC, BPCL, HPCL, BSE( Gr Floor BOI Shareholdings), UTI, ONGC, Lexcite.com Ltd, eximkey.com, Penta Computing, Selectron Process Control, Mass-Tech, United Software Inc, Indrajit System, Reymount Commodities, PC Ware, ACI Laptop ,Elle Electricals, DAV Institutions etc), has helped the industry in implementing ISMS Risk Analysis, Asset Classification, BCP Planning, ISMS Implementation FMEA, Process Control using Statistical Techniques and Problem Solving approach making process improvements in various assignments. He has traveled to 25 countries around the world including US, Europe and worldwide regularly for corporate training and business purposes.
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