Fast-fashion giant Shein is planning to add Turkey-based businesses to its supply chain for European operations following criticism of its use of Chinese labour, according to a report.
Its plan to use more suppliers that are closer to its main markets in Europe and the UK surfaces as Chinese officials are believed to be unhappy with the level of criticism Shein has faced since news of its intention to list on the London Stock Exchange, This Is Money revealed.
Critics have said Shein uses suppliers in China that exploit low-paid garment workers, allowing it to sell its clothes at lower prices and a move of some ops to Turkey would certainly make sense in this context.
But as with much around Shein — including the IPO itself — nothing has been confirmed by the company.
It comes as Shein is believed to be continuing to plan for a £50 billion flotation in London. But while it has reportedly filed papers with the UK’s Financial Conduct Authority as a first step to a listing, the company could still change its mind and list in Hong Kong instead.
The criticism of Shein has come from various quarters, including the British Fashion Council (BFC) that has pointed to issues linked to a UK share listing.
BFC chief Caroline Rush said last month: “At a time when global fashion leaders are rightly focused on making our sector more socially, environmentally and economically sustainable, the government’s courting of Shein to list on the London Stock Exchange and Shein’s decision to do so is of significant concern to UK fashion designer and retailers.”
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