The truth behind your $12 dress: Inside the Chinese factories fuelling Shein's success

BusinessJanuary 13, 20254 min read

The truth behind your $12 dress: Inside the Chinese factories fuelling Shein's success

The truth behind your $12 dress: Inside the Chinese factories fuelling Shein's success

The truth behind your $12 dress: Inside the Chinese factories fuelling Shein's success

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In the bustling city of Guangzhou, China, there exists a unique area known as 'Shein village,' where numerous factories are dedicated to producing clothing for the fast fashion giant, Shein. The sound of sewing machines fills the air from early morning until late at night, as workers tirelessly create a variety of garments, including t-shirts, shorts, blouses, and swimwear. These clothes are then shipped to customers in over 150 countries around the world. One factory worker shared, 'If there are 31 days in a month, I will work 31 days,' highlighting the demanding nature of their jobs. Most workers report having only one day off each month, which raises concerns about their working conditions. The BBC conducted an investigation in this area, visiting ten factories and speaking with more than twenty workers and several factory owners. They discovered that many workers are clocking in around 75 hours a week, which is in violation of Chinese labor laws that stipulate a maximum of 44 hours per week. This situation is not uncommon in Guangzhou, a city that attracts many rural workers seeking better pay. Shein, which has rapidly grown into a major player in the fast fashion industry, has faced scrutiny regarding its treatment of workers and allegations of forced labor. In 2023, the company was valued at approximately £54 billion ($66 billion) during a fundraising round, and it is now considering a potential public offering. Shein's business model relies heavily on volume and low prices, with dresses priced around £10 and sweaters for £6. The company has established a vast network of suppliers, with around 5,000 factories located in the Shein village alone. These factories are designed to maximize efficiency, with sewing machines and fabric rolls filling the space. Even late into the night, workers can be seen hunched over their machines, as trucks deliver more fabric to keep up with the demand. A 49-year-old woman from Jiangxi shared, 'We usually work 10, 11, or 12 hours a day,' indicating the long hours that have become the norm for many workers. The workers in Panyu often gather in alleys to search for job opportunities, examining job ads and discussing potential earnings. They are paid per piece, with the amount varying based on the complexity of the garment. For instance, a simple t-shirt may earn them one to two yuan, which is less than a dollar, and they can produce around a dozen in an hour. The alleys of Panyu serve as informal labor markets, bustling with activity as workers navigate their way through the morning rush, stopping for breakfast dumplings or soy milk. The standard working hours in these factories extend from 8 AM to well past 10 PM, and many workers report excessive overtime. A report based on interviews with textile workers revealed that the basic wage without overtime is around 2,400 yuan (£265; $327), which is significantly below the living wage of 6,512 yuan as determined by the Asia Floor Wage Alliance. While Shein's headquarters are now located in Singapore, the majority of its products are still manufactured in China. The company's rapid growth has attracted attention from U. S. lawmakers, with some expressing concerns about Shein's ties to the Chinese government and the treatment of its workers. Critics argue that the long hours and low pay are indicative of exploitation. Workers take breaks for meals, but many have to eat quickly to return to their stations. One woman, who has spent over 40 years in the industry, remarked that this is just another day for her. Inside the factories, there is ample light and ventilation, and large fans help keep the workers cool. Posters encourage employees to report any underage workers, reflecting the company's efforts to improve its practices. As Shein prepares for a potential public offering, it is under pressure to enhance its reputation and ensure fair treatment of workers. A professor in Fashion and Apparel Studies noted that transparency in the supply chain is crucial for gaining public trust. Shein's ability to quickly respond to consumer demand is a significant advantage, as its algorithm allows the company to identify popular items and increase production accordingly. However, this can create challenges for workers who must keep pace with the rapid changes in orders. A factory owner explained that while Shein's orders can be substantial, the profit margins are low, forcing them to find ways to cut costs, which often impacts worker wages. Despite the demanding conditions, some workers express pride in their contributions to Shein's success. One supervisor stated, 'This is the contribution we Chinese people can make to the world. ' As night falls, many workers continue to labor late into the evening, driven by the desire to earn more money. In cities around the globe, consumers are on the lookout for affordable fashion, and Shein is there to meet that demand.

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"The sound of sewing machines is always in the air, and workers often work very long hours."

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"She explained that they get paid for each piece of clothing they make, which can be very little."

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