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dresshistorynerd · 9 months

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How to see through the greenwashing propaganda of the fashion industry - 1

In the light of the Shein brand trip nonsense, I was thinking about how literally every clothing company now engages in greenwashing, even when it's such obvious lie like with Shein. And while most people are not fooled in such blatant cases like that, most cases are not as blatant. To see through the less obvious propaganda often needs a lot of knowledge of the clothing industry, which the average person doesn't have, yet the average person still needs clothing. So instead of trying to expose every company for their bad practices, I thought it might be more helpful to make a post on how to detect greenwashing. I'm going to use four examples, all in the different levels of honesty and responsibility, Shein, H&M, Burberry and Tentree. First I will go into frankly unnecessary amount of detail on Shein, because I fell into a horrifyingly fascinating research rabbit hole and I think it's excellent example on how companies can get away with blatant crimes (allegedly of course). In this first part we will just look into Shien, it's propaganda and reality behind it.

But before I go deeper into this, I want to stress one thing: this is not to say that you can never buy from any brand engaging in dishonest greenwashing, because then you couldn't buy almost any clothing, and you do need clothing. Though I will say, please don't buy from Shein if you in any way can afford not to. There is levels of how bad business practices can be, and they can't be much worse than Shein's, and even beside that, even when super cheep, it's not worth your money. There are other cheep options too. Though I won't hold it against anyone if they buy individual pieces from Shein from time to time, but I would implore at least to considerate, if they really need it and if it might be possible to get something similar from somewhere else. But my point in this is not necessarily to help you make better consumer decisions, because consumption will not save us, but to see through the corporate propaganda and not become complaisant after hearing comforting lies. The corporations are doing everything they can to make you believe they are already fixing the problems within the industry and there's no need for government intervention pinky promise, just keep consuming. But that's all bullshit and government intervention is exactly what is needed.

Before taking a look at our cases, I'll outline the key things I think are good to look for, when presented with sustainability PR.

TRANSPARENCY - Companies are not required to publish much of the information about their practices, but as it has become clear to everyone that the whole fashion industry is a massive problem, opacity has become rightly seen as suspicious. It has become also a sort of marketing method to disclose any evidence of good practices, so when a company is not doing that, and missing out on well working marketing, it raises the question, what are they hiding. Companies may try to give the appearance of transparency, without actually disclosing information. They might write in an easily accessible page about all their lofty goals, promises and achievements in a very vague language, they might talk about being transparent and publishing their data, but that data might be buried somewhere, where it's not easily accessible. Good sign on the other hand would be for example providing supply chain information for a product in the product description.

RELIABLE INFORMATION - Usually it's safer for a company to be vague or silent than to lie, because that might lead to legal consequences, but by cherry-picking and subtly twisting data, it can be turned to be flattering for them. Small companies might provide raw evidence of their facilities and supply chain, like photos, locations, contractor names etc. to give proof for their word. For bigger companies this is not of course possible as their supply chains might be massive and they might have thousands of facilities. However, there are many different independent and governmental organizations that give different kinds of certifications. The certifications are meant to give some reassurance of quality and/or accurate information. However not all certifications are made equal. Most reliable certifications don't have ties to the industry (aka are actually independent, not just in name), have governmental oversight and are given access to the data, from which they do the research themselves.

SUPPLY CHAIN - Giving the origin country of the final product is nowadays standard information to give, as it's required by law for example in EU. It's a red flag, if it's produced in a country, that has lacking environmental or labour laws, poor oversight and/or little protections for people. However, this does not mean that all production in those countries is unethical or questionable, but the risk for that is higher and the need for evidence of the working conditions is also higher. This is however just one part of the production. Before clothing can be sewn, the raw material for fiber must be made/acquired, that material must be turned into fiber, which must be turned into yarn and then the yarn must be woven into fabric. All of these steps in the process need workers, who deserve good working conditions. And depending on what fabric is in question, there's potential for major environmental issues in the different processes. This is why it's important to know more than just the country where the clothing was sewn. There could be certification for ethical sourcing of the fabric for example. With supply chain it's also better if the materials are sourced as locally as possible, to avoid a lot of extra carbon emissions from transportation. Best case scenario would be if the company manages the supply chain themselves locally, so they can know for sure where their materials come from and also avoid middlemen.

BUSINESS MODEL - The reason why it's often so hard to get information on the supply chain is that many companies, especially the large ones, outsource as much as possible. This might seem unintuitive, as the middlemen make production less efficient and costly as everyone takes a cut. However, they do it to outsource risks and responsibility. They don't have to invest into factories or raw material production and they have plausible deniability, if and when there's issues in their supply chain. The complexity of the supply chain provides opacity that is impossible and unreasonable to monitor, which allows the company to buy materials that are unreasonably cheep, while feigning ignorance of worker exploitation. How much the clothing cost can also give some idea on their business model. If it's super cheep, the only way for it to be that cheep is if workers are not payed enough and everything is poorly made. Cheep is always a red flag, though, if it's fairly cheep and I mean basic clothing is not much more than 100 eur (little more in USDs) but not much less than 50 eur, it can be okay or even good quality and with proper pay for workers, if the company doesn't take massive margins and don't have a ton of middlemen in their supply chain. However, expensive is not insurance of quality or good pay for workers. Many expensive brands take massive margins while their production has little difference to fast fashion and their products are poor quality.

CASE STUDY 1: SHEIN

Let's start with the propaganda. In Shein's About Us page, they say:

"SHEIN is a global fashion and lifestyle e-retailer committed to making the beauty of fashion accessible to all."

You see, their goal is to make fashion accessible to everyone, not just privileged few. They back this up by informing how they work in 150 countries, have very wide variety of clothing, are one of the most popular shopping apps, connect with the customers on where they are - social media - and, of course, have ridiculously low prices. Their team of nearly 10,000 employees (of which 58% are women for your information) loves to serve their many many customers, who are most important for Shein. They use "cutting-edge technology" and digitized agile supply chain to track sales and demand and adjust their manufacturing in real time. When they notice a new trend, they immediately put something trendy on sale, make prototypes and order small batches from factories. This is how they keep their inventory waste low and get products quickly to their customers. In their own words:

"By developing proprietary logistics and ecommerce technology, we are disrupting the fashion space and improving outcomes for manufacturers, suppliers and consumers."

We will see, if the "outcomes" are really "improved".

Shein group's website has very extensive information about their sustainability goals and efforts, giving the impression of transparency. It's pretty clear this is in an effort to combat all the allegations towards them. To make their business sustainable in addition to their reduced inventory waste they are "accelerating their transition" to use recycled polyester, promoting their "peer-to-peer resale platform" for Shein products, "eshtablishing" a recycling program for end-of-life products, tracing the material supply chain through their own material tracking platform and conserving forests by replacing viscose with "next generation fibers".

Most of the information they provide is fully meaningless corporate speak and should be taken with the biggest bucket of salt, so let's ask some questions.

DO THEY PROVIDE SPECIFIC DATA ABOUT THEIR PRODUCTION? Surprisingly Shein is much more transparent than I expected. (Though of course the info is in different website than where the average consumer would go.) Shein hasn't taken the standard route, which is to provide as little information as possible, and keeping it vague too, se they could just keep feigning ignorance. As I said, I think it's pretty clear they are providing this much information because their reputation is so bad. Their lack of transparency has been taken as an admission of guilt, so it's not working anymore, and they have taken a new approach into maintaining their plausible deniability. In their website, they provide a sustainability report from years 2021 and 2022. I took a look at the latest one. In it there's a lot of fluff, but they show actual numbers of how many code of conduct violations have been found in audits to supplier facilities, the carbon emissions of their supply chain and the amounts of different fabrics they have used during 2022. That's not nothing, so we have a relatively good start here.

WHO DID THE RESEARCH? The research is not at all independent, but done in-house. They have all the financial incentives to cherry-pick and frame their research in a way that shows them in the best possible light, even if we assumed they would not tamper with their own evidence, which I don't think we can fully assume either. There's an attempt though to convince us to believe the data they are showing:

"We have reported with reference to the Global Reporting Initiative (GRI) 2021 standard for certain sections of this report. Selected information in this report was assured, to the limited assurance standard, by an external independent assurer as per ISAE 3000."

Emphasis by me. So even if they did the research themselves, they did get it independently audited to get an assurance that they did follow the GRI standards in their reporting and that it doesn't contain lies. However, the "certain sections" and "selected information" with "limited assurance" does not give me much assurance, in fact, my assurance is very limited. To understand what does this actually mean, I did a bit of googling and delved into the annex of the report.

ISAE 3000 is a standard for auditing financial information issued by International Auditing and Assurance Standards Board, which an independent body that has governmental oversight. Financial information can get either reasonable assurance or limited assurance. Reasonable assurance is the most assurance this standard allows. Limited assurance is given, if the information provided to the assurer, time or extent of the procedure is lacking, but from those limited resources the assurer doesn't find anything that suggests "the subject matter information is materially misstated" aka that the company is lying. GRI is the most used reporting standard for sustainability for businesses and other organizations. I'm a bit suspicious of how effective their standards are, if they are most widely used, since most companies are absolutely terrible about sustainability yet they all claim they are great with it. So I decided to check who is in the board. Unsurprisingly it's mostly representatives of massive corporations, including Coca Cola and DuPond, a professor of accounting, national research director of Australia's Mining and Energy Union and one (1) environmental scientist.

The annex revealed quite interesting details. The only information that was AssuredTM (in a limited manner) for accurate information was the data on Shein's emissions and that of code of conduct violations. Only the report on emissions was AssuredTM (in a limited manner) to follow GRI standards. Shein got to select and prepare the relevant data for the audition, which was according to it, lacking. Crucially the audition report states that they didn't verify the results of supply audits or any potential violations of labor law found in them, rather they just checked that the math on the grading of the audits matched with Shein's stated criteria and that they actually did the audits. So if you really think about it, the (limited) assurance is that they graded themselves like they promised they would, not that their reporting of the amounts of violated labor laws or even just their own code of conduct was accurate. Additionally assurance of the accuracy of the emissions was only of Shein's own facilities, which do not produce any of their products, but not of their supply chain. 99,7% of their emissions come from their supply chain. So keep all this in mind when we look at the data itself.

WHAT ARE THEIR CARBON EMISSIONS AND HOW ARE THEY CALCULATED? Shein's emissions were 9,17 million tonnes of CO2, or 9,22 million tonnes if we don't count them purchasing Renewable Energy Credits. To put it into perspective that would be around 7-0,3% of the estimation of the annual emissions of the whole textile industry. Now that would be pretty low. In fact, suspiciously low. The fact that they got their own emissions auditioned, but not the emissions of their supply chain, suggests to me that perhaps, their numbers don't hold up to scrutiny. They also don't disclose their methodology for the numbers of the supply chain, like they do with their own facilities. Of course their response would be to say it's so much easier for them to calculate their own emissions than their suppliers. But I say that's not a bug, that's a feature.

Though looking at the methodology of the emissions from their own operating sites, which includes warehouses and offices, they don't take into account at all any emissions from building anything. They grew massively between 2021 and 2022 and I find it hard to believe they didn't built any of the new offices or warehouses they gained. Certainly they would have bought a lot of new equipment even if they moved to existing buildings. But none of this is taken into account in their calculations. And I must assume, it's not taken into account in their supply chain calculations either.

Even if we took them at their word, by their own admission, their carbon emissions have grown from 2021 to 2022 52%, which is alarming. (Interestingly they use the 2021 numbers in their actual website, which I think is so misleading that it's basically a lie.) They write it off as just side effect of their massive growth in production volume, which had 57% increase during the same time frame.

"We are at the beginning of our mitigation journey and began implementing decarbonization programs at the end of fiscal year 2022."

So they first scale their business as fast as they can, having absolutely no care of the environmental effect, so that when they have massive market share, and they reduce their massive emissions slightly, they can be like "oh look we did something!" They can then moan and wail how hard and time consuming it is to reduce the emissions of an existing supply chain, when they were the ones who decided to not take that into account from the start. Their "science based goal" (which they repeatedly stress in their website) is to reduce their emissions 25% by 2023. It's nothing. Less than nothing. They scaled without care their production in a time, when our ecology is collapsing, and then they claim that it's just science we possibly can't do anything about it. Apparently it's a natural law that they just have to make more and more money, like gravity.

WHAT MATERIALS DO THEY USE? Last year 64% of Shein's clothing (measured in weight) was polyester. Production of polyester is estimated to count for 40% of all carbon emissions of the textile industry. It's also a plastic made out of oil, so we have to take into account the fracking and refinement of oil and the eventual release of the CO2 from the oil that would have been secured in the ground otherwise. This most certainly is not counted into the supply chain emissions. Shein loves to pay lip service to the idea of circular economy, but they don't actually think about it. Because if they did, they would have taken into account the microplastics polyester fabric sheds when it's washed. When microplastics get into the soil and freshwater, they get into the organs of animals, including us, and they don't easily come off. Already it has been shown that they have led to the decrease of small soil fauna, which are very important for the fertility of the soil. Over time microplastics also break down further into nanoplastics. There's already evidence of nanoplastics being small enough to pass through veins into the brain, and that causing behavioral changes in fish. We don't know the long term consequences off this micro and nano plastic pollution yet, and we're just seeing the effects they have on small animals, but as they built up over years and decades inside our organs, we well likely see much larger effects.

Important for the lifecycle thinking is not just focusing on how much burden the production puts on the environment, but also how long it lasts and how can it be reused and eventually the impact of the end of it's lifecycle. If you remember from the beginning, Shein claims to take all this into account by having a resale program, somewhere in the future establishing a recycling program for unusable old clothes and increasing their share of recycled polyester. This is nothing. Again it's less than nothing. Polyester is not only bad fabric because of the things I've already said, but it's also just as a material for clothing very weak. It's not warm or breathable, which makes it at the same time sweaty and cold. It has no anti-bacterial qualities at all (which basically all natural fabrics have at least to small extent), so when you get easily sweaty in it, it starts also smelling very easily, and so needs washing very often. On top of washing releasing microplastics, it also weakens the fabric, because polyester gets weaker when wet (unlike plant fibers, like cotton and linen, which get stronger when wet). Polyester is also very hard to dye effectively and has bad color retaining properties, so it needs chemical treatments and strong industrial dyes, all of which adds to it's carbon footprint. Bad color retaining properties though also mean it looses it's color quite easily when washed. All of this makes it's life span significantly shorter than natural fabrics. I mean with some natural fabrics like wool and silk we are talking about multiple decades, with polyester it's easily in the low one digit years. These are inherent issues with polyester, but Shein clothes have repeatedly got complaints of their poor quality in general. This makes the resale program frankly meaningless.

On the surface the recycling program for polyester sounds good, right? You don't have to use more oil and use as much energy in making of it (according to Shein themselves, which again not a trustworthy source, it saves up to 70% emissions). Shein has promised to increase their share of recycled polyester to 31% of their polyester usage by 2030. Currently less than 1% of their production is recycled polyester. This is however a terrible solution. It still sheds microplastics and it's even worse as a fabric than virgin polyester. It is weaker and stiffer, making it impossible to use on it's own in fabric but when mixed with other fibers in a fabric significantly shortens it's life span. When we take into account the lifecycle of a clothing, the length of it and it's lifetime emissions become much more important than the production emissions. If you have to produce from scratch new clothing three times, in the time you could be using another clothing, it doesn't really matter if the emissions during the production were somewhat lower. (There's little reliable and comparable data available on production emissions of different fabrics, so I don't know how exactly recycled polyester compares to different natural fabrics.) Especially when we take into account the consumer use emissions, which in the case of polyester are 30% of it's lifetime emissions. And wast majority of it comes from washing, which you have to do more with polyester (how much more depends on what fabric you compere it to). Any responsible disposal of polyester at the end of it's lifecycle, especially any attempts at recycling it, cause additional emissions, unlike with natural fibers, which naturally degrade.

WHERE ARE THE SUPPLIERS? Shein boasts having fully integrated digital supply chain and with it they can track the whole supply chain of individual product. However they don't reveal any of that information publicly. Or rather only thing we know is that their factories making the end products are in China. But the question is, where does their fabrics come from? There's no countries listed in their report in any capacity and none of their products have any information of their origins nor the origins of the fabrics. This is very suspicious in my opinion. We can get no indication on how fibers might have been produced and made into fabric from the labor and environmental laws and practices of different countries. However, there is an interesting bit in the report about cotton:

"For cotton products, to further enhance our compliance with US laws, we request that our manufacturing suppliers only source cotton from Australia, Brazil, India, the United States and other approved regions."

This sentence is there pretty obviously because they have been caught selling clothing with cotton grown in Xinjiang in US markets, which US has banned. This is because Xinjiang, the Autonomous Uighur region, where 90% of China's raw cotton is grown, has been accused of genocidal oppression of the Uighur population, including having massive forced labour camps for Uighurs. Because of the police state nature of Xinjiang, there's no reliable numbers on how much of the cotton is produced with forced labour, but presumably most of it. Moreover, China limits the imports of cotton, which is why only 20% of cotton used by the textile industry in China is imported. Shein claims they know exactly where their fabrics come from, but the wording of the sentence above makes it clear they don't even plan on enforcing any policy to use imported cotton by their suppliers. Cotton is just 10% of fabric they used last year, but given their massive production volume, it's still a lot. This gets us to our next question.

IS THERE PROOF OF GOOD WORKING CONDITIONS? Shein reports doing in total 2 812 audits into 1 941 of their 5 400 contract manufacturers. According to them it accounted for 84% of their Shein branded products (so not their other 10 brands). This information, if you remember, was given limited assurance, by the audition into their numbers. However, we are to trust Shein alone that their the reports of their auditions are accurate. I'm not really willing to trust them, but let's sustain our disbelief for a moment to look at their findings. From their report:

"A: 90 points and above: minor flaws. Continued improvement is advised. B: 75 to 90 points: some general risks. Continued improvement is advised. C: 60 to 75 points: 1-3 major risks. Corrective action is required. D: below 60 points: >3 major risks. Corrective action is required. ZTV: Zero Tolerance Violation detetected. Immediate corrective action is required."

Even without knowing what do these things mean in practice, I don't think this paints a pretty picture. Only 4% of their manufacturing facilities had minor flaws and 82% of their facilities have major risks or worse? Does that mean none of their manufacturers fully comply with their Code of Conduct? They try to make it sound like it looks this bad because they have tightened their criteria and still the numbers are better than last year, but even with all of that, this is imo unacceptable. But it gets worse.

The report shows the amount of each ZTV found in the audits. This was explicitly not assured in any way by an independent party, so considering this information is given despite the lack of oversight and the interests of Shein, it's grim. Most of the 11% of ZTVs were gross safety violations. For example 4,2% of the audits, which means 118 facilities, found lacking emergency exits. However, they also found child labour in 6 facilities and forced labour in 3 facilities. So according to their own reporting, their manufacturers have used child labour and forced labour. And just to remind you, this is covering just 36% of their contract manufacturers. What I found interesting (read disturbing), was that violence or sexual misconduct against workers were not among Zero Tolerance Violations. I know it's not a situation, where they don't consider it violation of Code of Conduct, but rather just calls the police and let them handle it, because the violations counted here are based on their CoC, in which there's an item 7 named "No harassment or abuse of employees", which explicitly forbids physical, sexual, mental and verbal abuse. They don't however reveal other definitions of violations, than ZTVs, nor do their reveal how are they graded, so there's really no way to know what the 71% of their manufacturers have done to warrant their low (C or D) grading.

Would you at this point be surprised, if I told you it gets worse? Yeah, their so called Zero Tolerance Violations are not very zero tolerance after all. You might think zero tolerance means, that if manufacturers are caught doing it, their contract is immediately terminated and they are reported to authorities? Well, let's look what is the "immediate corrective action" outlined in their Responsible Sourcing Policy. Among the ZTVs they define even more zero tolerance violations, let's say negative tolerance violations. These are 1. forging documents, bribery or refusing to get assessed 2. child labour and 3. forced labour. Surely these lead to immediate contract termination and reporting to authorities?

So if Shein encounters slavery or probable coverup of it in their facilities, they stop placing new orders until the enslaved people and children are taken somewhere else or otherwise their contracts are fixed (at least for now), so there's no more slavery in sight, when someone comes back to assess them again and decides it's all good to continue business as usual. They have 30 days to make everything look like there's no issues, which sounds pretty easy task, and after that they can grab the kids and the slaves back there like nothing happened. Also notice how they didn't say they demand stopping the work entirely in the facility, just that they'll stop placing orders? Yeah, they don't stop production even if they find literal children or enslaved people producing them. Gotta get those dresses to the customer.

If they find any other ZTV, they come back in 30 days, and if the violation continues, they give a warning, come back again in 30 days, and if still the issue is there, then they stop placing orders. After that it continues like with child or forced labour violations. If after another 30 days it's not fixed, the contract is terminated. If a supplier gets two ZTVs within two years, they go straight to the even less than zero tolerance model straight away. If they get three ZTVs in two years, then their contract is immediately terminated. Nothing different happens though, if you get caught doing child or forced labour two times in two years, so you can just get caught once a year as long as you always pretend to stop doing it. But even if you do get caught third time in two years, or fail to pretend you fixed it, it's fine, you'll just have to do other stuff for the next year, and then you can apply again to work with Shien. Also the policy does not at any point require reporting these alleged crimes to authorities. If they at some point stop placing orders for a supplier (for example because of child or forced labour), they have to just sent all the files and documents of the goods that are produced by that supplier during the time they aren't giving them new orders to the relevant tax and customs authorities.

To answer the question I started this section with, sounds like Shein provides more evidence of bad working conditions in their suppliers' facilities, than they provide evidence of good working conditions. They even give evidence that their monitoring of those conditions is just a joke, and they have no mechanisms to actually get rid of suppliers who have inhumane working conditions. Elsewhere they try to give very weak evidence of good working conditions. The influencer brand trip to their facility in China was a PR stunt like that. However, it's easily dismissable, as the facility was not at one of the factories, where their clothing is made, all of which are third parties, but Shien's own facility they call Innovation Center. There they innovate new technologies, train their suppliers to use their new technologies and consult their suppliers on how to make new factories, which I assume means they have factory templates to give to their suppliers.

However, independent sources give much more reliable evidence of terrible working conditions in their factories. Like when undercover operation into one of their factories found employees working 18 hours a day earning 2 cents per item. When asked for comment, they answered: "Any non-compliance with this code is dealt with swiftly, and we will terminate partnerships that do not meet our standards." This is not severe ZTV, so what they mean by "dealt with swiftly" is "told to stop breaking labour laws, given some time, given warning, given more time, stopped giving new orders, given even more time and if after three months they have not stop then they gotta go". Because yes, they do terminate those who don't meet their standards. Their standards are just in the gutter.

HOW IS THE COMPANY STRUCTURED? While falling down this rabbit hole I came to the realization that Shein is the Uber of fashion. It's just the gig economy all over again. Let me explain. Unlike traditional fashion companies, Shein has outsourced even the sewing of the clothing. Shein itself is an app company, like Uber, though they technically do design their own clothes. I say technically because they have been repeatedly accused of copyright infringement to the point where they are now sued for racketeering. Allegation from the lawsuit:

"Shein has grown rich by committing individual infringements over and over again, as part of a long and continuous pattern of racketeering, which shows no sign of abating."

It relates to the other reason why I say their only technically design too, because a huge amount of their designs are also outsourced. In their sustainability report, they boast about how their SHEIN X program is meant to "empower" young designers to get their business off the ground, by taking their designs and using them for their clothing productions. This sounds a lot like SHEIN X designers are gig workers. They are basically just designers for Shein, but oh no they are not workers, labour laws won't apply! Shein specifically targets young designers, even students, so it's clear that they really just want impressionable people desperate for money and work experience. Obviously they won't get much money for their designs, since there's such a massive flood of products and designers, Shein says they have 3 000 designers in SHEIN X, and the products are so, so cheep. It's the exact same thing as with Uber and the like, they put their "workers" into competition with each other. To tie it back to the lawsuit, they use these third party designers as fodder against accusations of copyright infringement. They did not steal the design from the independent artist, they are just the platform provider.

This is also exactly how they operate with their factories. When their massive production is spread across all the 5 400 small separate suppliers, they are forced to compete for scraps. They can't organize together to demand better pay or better working conditions, and Shein can act like they have no part in them. Moreover, due to their extremely low prices, Shein has to offer only really low rates for the production of their clothing. On top of that because of the contractor structure, the actual fanctory owners taken an extra cut from those low rates, leaving extremely little for the actual workers. The prices are so low, they demand inhumane working conditions. It's impossible to sell clothing in the prices Shein does and pay well for the workers, especially with their business structure. All the talk about technological innovation is also bullshit, because this gig economy competition model ensures that most of the gig workers (in this case factories) will stay poor, so they can hardly invest in the new technologies.

This model is also what Shein holds as their most significant sustainability claim, because it allows them to cut most inventory waste. Traditional fashion companies always have a significant overhead, because their supply must always be higher than demand, otherwise, they would loose customers to their competitors. Because Shein orders small batches from large amount of factories, they can change their production in real time, adjusting to the demand much quicker than any competitor. Yes, it means they have minimal inventory loss, but it's not actually efficient. Or rather not efficient in any other way than for maximizing profits. There is a massive amount of overlap of facilities, machinery, organization structures and bureaucracy, if we look at Shein's whole production, because the small factories are all producing same things, but because Shein drives them to compete with each other, they don't have to pay for that overlap. More than that, it's extremely inefficient way to maximize people getting clothed while minimizing materials. And I don't mean producing as much clothes as possible while minimizing materials, because that is what they are doing, but the goal shouldn't be as much clothes as possible, but maximizing everyone having enough clothing, which is much less that what we produce today. And if clothing was made to last instead of making as many of them as possible, even less could be made and still everyone would have enough clothes.

Shein's extremely quick rise to the top of fashion markets was due to how effectively they managed to use the pandemic for their advantage. During the lock-downs around the world, people spend increasingly more time on their phones and social media, which Shein managed turn into their profit. They utilize social media and influencers effectively for marketing. Their platform also uses many of the same psychological tricks social media uses to keep customers scrolling and consuming. This is on itself is not at all new, but because of their business model, they turned attention into sales and sales into more attention. All that combined with their ability to response in real time to new trends and scale production extremely quickly, turned any new trend in social media into hype and micro-fashion cycles, which they would burn through increasingly fast. Their competitors wouldn't even have the time to get into that trend before it would be replaced with a new trend. Then all they needed to do was to contract new small factories, they didn't even have to spend time and money to built them, and they could take over the fast fashion market.

Shein's effect won't stop there though. Their competitors will and are already starting to adapt their methods. It means quality of clothing will keep getting worse, the whole industry will keep increasing their carbon emissions and the working conditions from cotton farmers to designers will get worse as gig economy spreads in the industry. I'll talk more about this in the conclusions of the second part, but to fix this, there needs to be government intervention. It's good that there's a lawsuit over their wider practices, not just a singular act, but it won't be enough. If they don't face significant consequences, every other company will take note that they can profit off of (allegedly) systematic crimes.

IN CONCLUSION Shein as a company is a glorified optimization algorithm which only real function is to drive up consumption and in exchange take all the profits from everyone else's labour. They use the modern classic Uber model to take the neoliberal principle of outsourcing risks and responsibilities to it's logical conclusion. Their extremely exploitative business model only works if their designers and factories and other gig workers break laws. They do the absolute bare minimum to comply with law and (allegedly) not even that when they believe they can get away with it by blaming others, which is fucking bad indictment of those laws, since my god they are terrible. Their greenwashing propaganda is honestly laughable, it's a joke and they must know it. It feels more like gaslighting than propaganda.

#this is not exactly what i usually write about but one of the reasons i care about historical fashion is because i care about sustainability #fashion #sustainable fashion #environment #climate crisis #shein #fashion industry #shein clothes #fast fashion #slavery mentioned #genocide mentioned

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