PARIS: French authorities said Wednesday that they had imposed two fines on Shein totalling more than 22 million euros ($25.5 million), citing problems with product traceability, environmental labelling and delivery times. The new penalties bring the total fines imposed by France against the Asian fashion giant to more than 210 million euros. The latest fines were imposed by the government&#39;s consumer protection agency DGCCRF following a wide-ranging investigation targeting several e-commerce platforms, primarily based outside Europe, including Shein. The first fine of 5.77 million euros targets Infinite Style Ecommerce Co Ltd (ISEL), which handles sales for Shein. The DGCCRF accuses Shein of failing to comply with a 14-day period required for consumers to be able to reconsider certain purchases. The watchdog also accuses the company of omitting mandatory traceability information, such as the countries where its clothing is woven, dyed and manufactured, and of failing to disclose the presence of microplastics in its fabrics. Microplastics, primarily found in polyester, are released into the water with every machine wash, posing a serious environmental threat. In addition, the agency imposed a fine of 16.73 million euros on Shein&#39;s subsidiary ISSL (Infinite Styles Services Limited), accusing it of violations of consumer law. Shein has been under fire since it established operations in France. It is widely criticised by campaign groups and politicians for generating environmental pollution, practising unfair competition, selling goods that fail to comply with basic regulations and imposing poor working conditions in its Chinese factories.

Europe

France fined Shein over 22 million for consumer law, product traceability, environmental labelling, and delivery violations, bringing its total penalties in the country to more than 210 million.

France hits Shein with 22 million euros in new fines over consumer violations

Reuters

PARIS: Online fast-fashion retailer Shein plans to open its first bricks-and-mortar shops in France in November under an agreement with department store owner Soci&eacute;t&eacute; des Grands Magasins, a move that sparked criticism from French retailers. The stores in the BHV department store in central Paris and Galeries Lafayette department stores in five other French cities mark a new step for Shein, which has up to now only hosted temporary marketing-driven pop-ups around the world. SGM president Fr&eacute;d&eacute;ric Merlin said the launch would attract a younger clientele, adding that a customer might buy a Shein item and a designer handbag on the same day. Galeries Lafayette, which sold the stores operated by SGM under its name through a franchise agreement, said it opposed the move, which would violate the franchise agreement, and plans to stop it from happening. &ldquo;Galeries Lafayette profoundly disagrees with this decision with regards to the positioning and practices of this ultra-fast fashion brand that is in contradiction with its offer and values,&rdquo; the group said in a statement. Retailers criticize department store deal with Shein Shein, which sells 12-euro dresses and 20-euro jeans, faces pressure from other retailers, politicians and regulators in France, where lawmakers have backed a draft law regulating fast fashion that would, if implemented, ban Shein from advertising. &quot;In front of the Paris City Hall, they are creating the new Shein megastore, which &ndash; after destroying dozens of French brands &ndash; aims to flood our market even more massively with disposable products,&quot; Yann Rivoallan, head of fashion retail association F&eacute;d&eacute;ration Francaise du Pret-a-Porter, said in a statement. French retailers were already struggling to compete with Zara ITX.MC and H&amp;M HMb.ST when Shein launched, drawing cost-conscious consumers in with its discounts. Several French fast-fashion retailers such as Jennyfer and NafNaf went into insolvency proceedings earlier this year. Shein&rsquo;s bricks-and-mortar launch brings challenges Shein sells clothes and accessories at rock-bottom prices thanks to its business model of sending parcels direct from factories in China to shoppers around the world, benefiting from customs rules giving low-value e-commerce parcels an exemption from duties. Shein executives have said its success is due to its online-only business model, meaning it has little unsold inventory, unlike bricks-and-mortar retailers. Setting up physical stores is a big departure from that model, requiring the company to maintain inventory in stores, which will add to running costs. It comes as Shein adapts to changes in its biggest market, the U.S., where its &quot;de minimis&quot; duty exemption for low-value parcels is ending. The European Union is planning to do the same. Shein&#39;s first store, on the sixth floor of the BHV, will open in early November, with later openings planned in Galeries Lafayette department stores in Dijon, Grenoble, Reims, Limoges, and Angers. Executive Chairman Donald Tang has said in interviews that Shein is especially popular in provincial and rural areas where he says customers have fewer options for fashionable clothes.

Business

Shein plans its first physical stores in France, sparking backlash from retailers and Galeries Lafayette over fast fashion concerns and franchise agreement conflicts.

Shein enters bricks-and-mortar retail in France, sparking backlash

TOKYO: Asian fast-fashion giant Shein said Wednesday it had picked France to open its first permanent physical stores in November. The company, whose environmental record and discount-driven e-commerce business model have often come under criticism, said in a statement the first shop would open at the BHV Marais department store in Paris. It would be followed by five more in Galeries Lafayette department stores in the cities of Dijon, Reims, Grenoble, Angers and Limoges, it said. The move comes through a partnership with retail property group Societe des Grands Magasins (SGM), which owns BHV Marais and several Galeries Lafayette stores. &quot;This alliance is more than a launch: it is a pledge to revitalize city centers across France, restore department stores, and create new opportunities for French ready-to-wear,&quot; the company said in a statement. It said the stores will offer a full range of services and create 200 direct and indirect jobs in France. While Shein has previously held temporary pop-ups in cities including Paris, it has never before established a permanent physical shop. &quot;By choosing France as the place to trial physical retail, we are honoring its position as a key fashion capital and embracing its spirit of creativity and excellence,&quot; said Donald Tang, Shein&#39;s executive chairman. &quot;It is fitting that this journey starts in Paris, at BHV -- the birthplace of modern retail,&quot; he was quoted as saying in the statement. Founded in China and now based in Singapore, Shein built its empire on ultra-cheap clothing, a vast product range and aggressive marketing. But it faces mounting criticism over the environmental impact of its massive production, labour conditions and alleged unfair competition, with European brands accusing it of skirting European Union standards and exploiting customs exemptions for low-value parcels. Shein employs 16,000 people worldwide and posted $23 billion in revenue in 2022.

Entertainment

Shein will open its first permanent physical stores in France starting November, beginning at Paris’ BHV Marais and expanding to five Galeries Lafayette locations. The move, creating 200 jobs, comes despite mounting criticism over environmental and labor practices.

Articles tagged with "Shein"

France hits Shein with 22 million euros in new fines over consumer violations

Shein enters bricks-and-mortar retail in France, sparking backlash

Shein picks France for its first permanent stores

France hits Shein with 22 million euros in new fines over consumer violations