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In response to President Trump’s newly imposed tariffs on goods coming from China, fast-fashion heavyweight company Shein has reached out to Chinese manufacturers and asked them to set up production centers in Vietnam, according to Business of Fashion. The company is aiming to avoid paying the high fees charged to export to the U.S.
What’s happening?
In order to circumvent the cost of exporting its cheaply made, super-trendy products, Shein is seeking other modes of getting its apparel and accessories made quickly and easily.
If its China-based manufacturers open new production facilities in places like Vietnam, the company would avoid having to pay the high tariffs.
Shein has reportedly incentivized this proposal by offering higher procurement prices and agreeing to financially support the construction of the new factories and the shipping of the materials and garments, creating an impetus for the Chinese factories and producers to go along with the idea.
But this aid would only last for one month, and according to Business of Fashion, “It’s also unclear if suppliers will scale down their existing China capacity after setting up plants in Vietnam.”
Why is this tactical move by Shein important?
Shein has already been the focus of criticism for both its treatment of workers and its damaging effects on the environment. The company underpays its employees with a meager wage and workers toil for 18 hours a day with only one day off per month.
On top of that, fast fashion is highly damaging to the environment. Items are often created from destructive synthetic materials, and the processes used to create this often disposed-of clothing causes pollution to soil, air, and water, and the massive amounts of textiles often wind up in landfills.
What’s being done about Shein’s attempt to avoid tariffs and fast fashion’s damage to the environment?
According to Supply Chain Digital, financial analysts believe this move is a “necessary step to sustain growth in the face of regulatory pressures,” but it will perpetuate the damaging effects from companies like Temu and Shein.
Sustainability Magazine says that “the company will need to implement robust labor standards and monitoring systems in Vietnam to avoid similar issues and improve its social responsibility profile.”
As for the destructive nature of producing the materials, environmentalists continue to encourage people to buy from other sources. Thrift stores are a great alternative for affordable but stylish looks that save consumers money. Ultimately, the solution is for individuals to turn away from fast fashion altogether.
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If you’re interested in learning more about letting go of fast fashion, visit this guide about how to break up with fast fashion.
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