Close
Shein ESG TikTok Fast Fashion IPO China US

Shein invites influencers to China to showcase its ESG efforts, but backfires

Rebbeca Ren

posted on June 28, 2023 4:46 am

Shein has been working hard to improve its negative image including environmentally unfriendly, nontransparent supply chain, bad working conditions, and more as it seeks for a potential IPO, but its latest effort has got a strong wave of backlash.

Last week, the fast-fashion brand invited a bunch of TikTok and Instagram influencers, such as Dani Carbonari (@danidmc), AuJené Butler (@itsjustajlove), Marina Saavedra (@marinasaavedraa), and Destene Sudduth (itsdestene_) to visit its facilities in Guangzhou, China.

Screenshots from Shein's TikTok
Screenshots from Shein's TikTok

After the tour, called "Shein 101", influencers posted a series of videos on social media that basically repeated the same things, like highlighting how advanced Shein's warehouses and factories are, how happy the workers are, and how transparent the supply chain is.

However, the fact that they all follow the same corporate public relationship narrative makes viewers doubt the content's veracity.

"Everything is just so weird, fabricated, and curated," TikTok user @m4tthew.com said in his reaction video, which generates over 255k views and 7928 likes.

"Is Shein aware that we’re aware that influencers will say anything for a check?" user @svixens (abby) said.

“It was like they have been given a script.” user @tamapasifika (Tama Pasifika) commented.

Screenshots of reaction videos
Screenshots of reaction videos

Taylor Lorenz, a tech reporter for The Washington Post, also voiced her concerns on TikTok regarding how companies are manipulating public opinion.

She said, "I think Shein's influencer trip is a perfect example of what can go wrong [in the new media landscape]." The reporter explained that influencers tend to be less accountable for what they say than journalists and are more likely to buy into corporate narratives, which can lead to misinformation.

Taylor Lorenz talking about the influencer tour on TikTok
Taylor Lorenz talking about the influencer tour on TikTok

Evidently, the influencer tour did not deliver what the company hoped for, namely to assure the public that allegations of unsustainable, opaque supply chains and poor working conditions were unfounded.

Shein, renowned for selling ultra-cheap apparel online, is eager to address concerns about its sustainability and social responsibility, as it faces mounting pressure in the US.

On May 3, US lawmakers requested the Securities and Exchange Commission to halt Shein's planned initial public offering until the company can provide verified assurances that it does not use forced labor.

A campaign called "Shut Down Shein" was launched in April with the aim of intensifying scrutiny on the company in Washington, ultimately seeking to kick it out of the US marketplace.

Additionally, to make it look more responsible, the company has put a lot of endeavors into ESG, such as hiring Adam Whinston, a veteran in the ESG space, as its global ESG head, rolling out Shein Exchange, a second-hand resale platform, using sustainable materials for clothing production, and more.

This series of moves is seen as an effort by Shein to pave the way for an IPO in the US. In the past few months, several news outlets have reported that the company is raising money and expects to go public in New York later this year.

On Monday, rumors that Shein had secretly filed for a US IPO sparked a new round of buzz on Chinese social media platforms. However, as expected, and as usual, the company swiftly denied the "hearsay".

The Wall Street Journal reported in May that Shein raised $2 billion in its latest round of financing, valuing the company at $66 billion, about a third less than a year ago. It generated $23 billion in revenue in 2022, with a net profit of $800 million.

The valuation adjustment follows a broad downturn in tech stock prices. As the US Federal Reserve tightened liquidity in response to inflationary pressures, technology companies, particularly growth companies, have seen sharp declines since the second half of last year.

Some influencers have taken down their videos or blocked comments as the backlash against the "Shein 101" campaign rises. 

On the other hand, some decided to directly face critics. “I should do more research from the beginning...This whole experience has caused me to reevaluate myself, and my brand, and to fight even harder for sustainable options for plus size people, and to just be so much more particular with who I’m working with,” Dani DMC said on her Instagram.

Dani DMC talking about her tour with followers on Instagram
Dani DMC talking about her tour with followers on Instagram

In a statement by the company, Shein said it respects and stands by each influencer’s perspective and voice on their experience. 

“Shein is committed to transparency and this trip reflects one way in which we are listening to feedback, providing an opportunity to show a group of influencers how Shein works through a visit to our innovation center and enabling them to share their own insights with their followers,” the company read.