Shein releases product security knowledge forward of London IPO

A consumer carries a bag with promotional merchandise whereas visiting style retailer Shein’s Christmas bus tour, in Manchester, Britain, December 13, 2024. 

Temilade Adelaja | Reuters

Shein is ramping up its allure offensive once more because the quick style big eyes a public itemizing in London as quickly as this yr. 

The retailer issued a press launch on Friday detailing the steps it is taking to maintain the gadgets it sells secure. The announcement got here a couple of week after its first product security recall within the U.S. since 2021. 

Shein stated it performed over 2 million product security assessments final yr utilizing industry-leading labs reminiscent of Bureau Veritas and Intertek, including that its distributors are required to submit documentation for gadgets like toys, child merchandise, medical gadgets and electronics. 

Shein made the announcement, which included particulars on its sustainability initiatives and a brand new nonprofit basis it arrange, as the corporate appears to win over lawmakers within the U.Ok. and ease issues that it is promoting unsafe merchandise which are made with pressured labor. 

Final week, Shein recalled greater than 300 hair dryer brushes as a result of they posed an electrocution or shock hazard to customers. The Teckwe Hair Dryer Brush seemed to be a so-called dupe of an identical product offered by Dyson. No accidents had been reported and Shein is providing a refund to impacted clients. 

A spokesperson for Shein advised CNBC the corporate performed security assessments on merchandise it sells itself and did “risk-based, randomized testing” on gadgets offered by third-party distributors on its market previous to their itemizing.

Product security testing is frequent for gadgets {that a} retailer sells, even when they’re on-line solely, as a result of they may very well be held accountable for defects underneath client safety legal guidelines within the U.S. Alternatively, a retailer’s legal responsibility is much less clear for third-party sellers on a web based market, which makes product testing previous to an merchandise’s itemizing uncommon.

Shein’s resolution to conduct product security assessments on gadgets offered by third-party sellers makes it stand out in an {industry} that has been rife with security issues. Usually, on-line marketplaces simply require sellers to conduct their very own testing and supply documentation to assist it.

Shein added in its press launch that it terminated greater than 260 sellers on its market during the last yr for not assembly compliance necessities. 

Shein faces U.Ok. scrutiny

Shein’s marketing campaign to point out it takes product security and sustainability critically comes because it prepares to go public within the U.Ok. — and follows an identical allure offensive within the U.S. earlier than its doomed IPO bid there.

Earlier this month, U.Ok. lawmakers criticized attorneys for Shein once they appeared earlier than a British parliamentary listening to and evaded questions in regards to the firm’s provide chain and whether or not it sells merchandise made with cotton from China, the Related Press reported

Shein’s common counsel in Europe, Yinan Zhu, repeatedly declined to say whether or not the corporate’s merchandise include cotton from Xinjiang and whether or not the corporate prohibits suppliers from sourcing uncooked supplies within the area, which has develop into infamous for its Uyghur detention camps

When requested whether or not the corporate believes there may be pressured labor in Xinjiang, Zhu stated it wasn’t the corporate’s place to have a “geopolitical debate” and repeated a line Shein usually makes use of when grilled on its provide chain: “We adjust to the legal guidelines and laws within the nations that we function in.”

Committee chairman Liam Byrne stated Zhu’s refusal to reply questions left lawmakers “horrified” and gave them “zero confidence” within the integrity of Shein’s provide chain.  

“The reluctance to reply fundamental questions has frankly bordered on contempt,” Byrne stated.

All through 2023, when Shein was nonetheless hoping for a U.S. IPO, it generally spoke publicly about its cotton provide chain and the assessments it had performed to make sure it wasn’t sourcing from banned areas. It even advised CNBC it had stopped sourcing cotton from China altogether. 

Shein didn’t make related statements within the parliamentary listening to.

Supply hyperlink

Leave a Comment