The continuous hum of sewing machines is a constant in some areas of Guangzhou, a busy port city on the Pearl River in southern China. The racket echoes through open windows from early morning until late at night, signalling the completion of t-shirts, shorts, blouses, slacks, and swimwear that will be placed in closets across more than 150 nations.
This sound is commonly associated with Panyu, a Guangzhou neighbourhood called the “Shein village.” The world’s largest fast fashion retailer, Shein, is fueled by this district, home to thousands of factories.
How Do Employees Handle an Intense Work Schedule?
Long hours are a defining feature of life in the Shein hamlet, where employees use sewing machines for up to 75 hours each week, far more than is permitted by Chinese labour regulations. There is usually only one day off each month for the workers here, primarily from rural areas looking for higher earnings.
“If there are 31 days in a month, I will work 31 days,” one employee said, emphasizing the demanding nature of the task. Other employees have similar opinions that they rarely take time off.
The foundation of Shein’s empire is an underpaid and overworked workforce, according to an examination of Guangzhou life that included trips to ten companies, talks with factory owners, and interviews with over twenty workers.
How Did Shein Achieve International Fame at Such Exorbitant Prices?
In over five years, Shein, a tiny and obscure Chinese corporation, has grown into a major worldwide force. It is now privately held, valued at approximately £36 billion ($60 billion), and preparing to list on the London Stock Exchange. However, claims of forced labour and unethical working conditions have clouded its soaring popularity.
Shein’s labour practices have come under increased scrutiny despite their success. It had to acknowledge last year that it had discovered youngsters working in its factories. The company is “committed to ensuring the fair and dignified treatment of all workers within our supply chain,” Shein said. Additionally, it announced spending tens of millions of dollars to enhance governance and compliance, highlighting how crucial it is to follow its stringent code of conduct.
Shein continued, “We work hard to establish the highest standards for compensation and we demand that all supply chain partners follow our code of conduct.” “Shein also collaborates with auditors to guarantee compliance.”
How Does Shein Continue to Succeed Despite Low Prices and High Volume?
The foundation of Shein’s business strategy is its capacity to manufacture incredible apparel at incredibly low costs. Thousands of products priced under £8 may be found on the company’s website. Sweaters might only cost £6, but dresses might cost as much as £10.
The manufacturers in Panyu, where almost 5,000 factories produce clothing for Shein, are the driving force behind this achievement. Sewing machines, rolls of fabric, and bags of leftover fabric occupy these dilapidated factories, which are not opulent structures. New fabric deliveries, which frequently arrive late at night in trucks brimming with supplies, set the pace for the day. The sound of sewing machines continues until morning, even after 10:00 PM.
According to a Jiangxi worker, 49, “We typically work 10, 11, or 12 hours a day.” We work about three hours less on Sundays.
Why Do Employees Face Difficulties with Low Pay and Long Hours?
Wages are still low despite the unrelenting pace of work. It was discovered that many workers receive payment for each item of clothing they make. Workers receive as little as one or two yuan (less than a dollar) per piece for simpler goods like t-shirts. Workers are paid very little despite producing almost a dozen t-shirts per hour. Although the estimated living wage in China is 6,512 yuan (£265), many workers make much less, with monthly earnings ranging from 4,000 to 10,000 yuan.
One employee clarified, “We make so little. The expense of living has increased significantly. “I hope to send money back to my two children who live with their grandparents,” the Jiangxi migrant worker revealed. She is one of many workers lured to the factories by the higher wages than those in their rural hometowns.
The Swiss advocacy group Public Eye’s David Hatfield described the scenario as an “extreme form of exploitation.” “These hours are not out of the ordinary, but it is evident that it is unlawful and a violation of fundamental human rights,” he continued.
What Impact Does Shein's Success Have on International Labor Markets?
Most Shein’s products are still manufactured in China, even though the company’s headquarters are now in Singapore. The effectiveness of the company’s Chinese supply chain is partly responsible for its capacity to manufacture and distribute its goods at such a rapid rate. “Very few countries have a complete supply chain,” noted Professor Sheng Lu of the University of Delaware. No one can match what China has.
However, critics in the United States and other Western nations have taken notice of Shein’s achievements. U.S. Senator Marco Rubio voiced concerns in June regarding Shein’s connections to the Chinese government and charged the company with using forced labour to exploit people, claiming that “slave labour, sweatshops, and trade tricks” were responsible for Shein’s success.
What Issues Are There With Shein's Sourcing Procedures?
The claim that Shein receives its cotton from the Xinjiang region—a region in China where tales of forced labour among the Uyghur Muslim minority have surfaced—is one of the biggest obstacles the company must contend with. Even though the Chinese government disputes these claims, the scandal has caused Shein’s sourcing policies to come under scrutiny.
Professor Sheng contended that Shein must be more open to dispel this issue. “Unless you fully release your factory list, unless you make your supply chain more transparent to the public, then I think it’s going to be very challenging for Shein.”
What Impact Do Shein's Demands Have on Factory Owners?
There is no denying Shein’s impact on the Panyu factories. Factory owners have little leeway because they must follow the company’s rigid pricing requirements. According to one factory owner, they had the authority to determine their prices and manage their earnings before Shein. Factory owners are now forced to find ways to cut expenses elsewhere, frequently at their employees’ wages, as Shein now controls the pricing.
One factory owner stated, “We made and sold clothing on our own before Shein.” “We could determine the pricing, estimate the cost, and figure out the profit. Shein now sets the pricing, therefore you need to consider methods to save costs.”
What Do Employees in Panyu Have to Deal With Every Day?
In Panyu, life moves quickly, with workers hardly taking breaks. Workers take quick breaks throughout the day to eat in the factory canteen or on the street if there is no seating. This is simply another day in the relentless routine for many workers.
“I’ve been working in these factories for more than 40 years,” remarked a worker who was given only 20 minutes to eat. “For me, this is just another day.”
Despite the long hours and low wages, some workers find pride in their work. A 33-year-old supervisor from Guangdong expressed her sense of belonging: “We get on well with each other. We are like a family.”
In the face of scrutiny, how will Shein manage its reputation?ay?
Shein is under increasing pressure to reform labour practices as it prepares for a possible public listing. According to Professor Sheng, Shein must be more accountable for its supply chain and increase transparency to keep investors’ trust.
With almost a million shipments shipped daily, Shein’s growth has elevated it to the top of the global fashion market. Many people in Panyu still take pride in Shein, even though some of its employees are exploited.
Considering Shein’s ascent, one supervisor remarked, “This is the contribution we Chinese people can make to the world.” It pays on time, and it will get stronger. It is most reliable in this situation.
Shein’s hold on the world fashion market is still strong as night falls, and many employees head back to their workstations for another round of production. This success, however, comes at the cost of the Guangzhou workers’ time and, occasionally, their dignity.