Emily Hawkins has revealed that Shein, the massive Chinese fashion brand, found evidence of child labor in two of its supply chain cases last year.
Despite making a €1.77 billion profit last year, the company has drawn criticism for its incredibly low prices, which include €6 outfits, reported Business Plus.
Shein has acknowledged that factory inspections have improved and that it takes action against suppliers who behave unethically, following past accusations for mistreating workers.
Two cases of child labor were reported in a recent sustainability report.
The company said that both incidents were "resolved swiftly" and that it took action to end the children's contracts, pay unpaid money, and schedule medical examinations.
After tightening up identification procedures for new hires in the wake of the January–September events, the manufacturers were given the all-clear to continue operations.
However, the business maintained that stricter regulations now stipulated that any incidence of forced or child labor would result in the instant cancellation of contracts.
Shein, a Chinese fashion brand with its headquarters currently in Singapore, has come under fire for allegedly sourcing its clothing at deeply discounted costs from vendors that take advantage of low-wage workers in China.
Additionally, it avoids custom charges by sending straight to internet shoppers from Asia.
However, as the company prepares to trade shares in the UK, the British Fashion Council has voiced concerns over the plans due to suspicions that Shein undercuts other stores through unscrupulous means.
The 'Say No' petition started by fashion activist Venetia La Manna and writer Grace Blakeley has amassed more than 43,000 signatures thus far.
It claims that Shein's deals are obtained by undervaluing its employees and evading taxes.
'Queen of the Shops' and retail guru Mary Portas is one of the well-known figures supporting the initiative.
However, Shein stated that 3,990 audit inspections, primarily by outside organizations, were carried out on Chinese suppliers and subcontractors last year.
The corporation intends to boost the volume of clothing produced in Turkey in an effort to appease critics.
Shein abandoned its initial intentions to list on the New York stock exchange due in part to opposition in the US, including criticism from trade association the National Retail Federation.
Since its founding in 2012, Shein—which touts an innovative business strategy and effective supply chain to maintain low prices—has seen a meteoric rise in popularity among younger, cost-conscious consumers across 150 nations.
It purchased the UK brand Missguided from Mike Ashley's company Frasers last year.
Celebrities have promoted its designs, such as Georgia Toffolo of reality TV.
An advocacy group called Public Eye reported in May that some employees put in 75-hour work weeks. In an attempt to gain favor with the business community, Shein has joined the British Retail Consortium and engaged prestigious PR agencies in the UK.
As the corporation approaches its £50 billion (€59 billion) market debut on the London Stock Exchange, scrutiny surrounding it has intensified.
It would make one of the largest market debuts in the history of the City of London. According to reports, the group has started the process of getting listed by filing paperwork with the Financial Conduct Authority.
Given that the flotation would assist to stabilize the unstable London markets, the UK government is believed to be in favor of it.
The City has suffered in recent years as a result of numerous businesses being acquired by wealthy investors or shifting their listings to New York.