Chinese fast fashion giant Shein aims to be more sustainable

BARCELONA, April 25 (Reuters) – Chinese fast-fashion retailer Shein plans to become more focused on sustainability, Executive Vice Chairman Donald Tang said on Tuesday, adding that consumers no longer only care about affordability.

Shein sells dresses for $10 and tops for $5 and has taken market share from other affordable fashion retailers. The company manufactures clothes in China to sell online in the United States, Europe and Asia and has been criticized for promoting disposable fashion.

“Today’s consumers are no longer just looking at price: in the next phase to continue growing, you need to consider ESG,” said Tang at the World Retail Congress in Barcelona.

ESG, an acronym for environmental, social, and governance, is a term used to describe corporate efforts to be more responsible.

Tang said Shein offers customers the option of selecting higher-quality materials and paying a premium price for certain items.

He also mentioned Shein Exchange, an enterprise platform where shoppers can resell used clothing, which launched in the US in October and aims to launch in other markets this year.

Shein continues to grow “very strongly”, Tang said, and regularly has less than 2% of unsold inventory.

Reporting by Helen Reid and Corina Pons Editing by David Goodman

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