Posts

shein

Shein’s Paris Launch Sparks Outrage Over Fast Fashion and ‘Childlike’ Sex Dolls

/in /by

In the global capital of fashion, the arrival of the Chinese ultra-fast fashion giant Shein has sparked a storm. The brand plans to open its first-ever permanent store on Wednesday inside BHV, one of the best-known department stores in Paris. But instead of applause, Shein’s debut has been met with outrage, not only for its reputation for cheap, disposable clothing, but also for a shocking scandal involving the sale of “childlike” sex dolls.

The backlash has been going on for weeks. On Tuesday, Paris Deputy Mayor Nicolas Bonnet-Oulaldj stated that “The city of Paris reaffirms that Shein is contrary to its values.”

“We ask the Minister of the Economy to go further than just making threats and to ban the Shein platform in France.”

The controversy has divided France’s retail scene. Both Galeries Lafayette and BHV belong to the Société des Grands Magasins (SGM) group, but Lafayette issued a rare public rebuke in late October, condemning the decision to host Shein, calling the brand “in contradiction with their offer and their values.”

In response, SGM reportedly ordered five Galeries Lafayette locations to rebrand as BHV, a move seen as a major blow to Lafayette’s legacy.

“Our capital cannot become the showcase for disposable goods and exploitation,” said Ian Brossat, a Paris senator from the French Communist Party, in a statement on X.

Embed from Getty Images

Facing intense scrutiny, SGM President Frédéric Merlin defended his decision on RTL radio on Tuesday, citing Shein’s immense popularity.

“We’re speaking of a brand that is regularly bought by 25 million French customers, who are today considered bad people because they buy from this platform?”

But for many in France, Shein’s image sits uneasily alongside Paris’ heritage of haute couture, where craftsmanship, exclusivity, and sustainability are prized. Critics say Shein embodies everything Paris has fought to move beyond—waste, mass production, and environmental neglect.

The irony isn’t lost on observers: Shein landing in the same city that hosted the 2016 Paris Climate Agreement feels almost symbolic of fashion’s ongoing contradictions.

Shein, often described as the face of fast fashion’s excesses, has been accused of ignoring sustainable manufacturing and contributing to massive global shipping emissions. The company insists its “on-demand” production model limits overproduction and waste, a claim skeptics call greenwashing.

Paris, meanwhile, has been working to position itself as a sustainability leader by investing in cycling infrastructure, promoting low-carbon businesses, and making environmental responsibility a central focus of the 2024 Paris Olympics.

The fallout has been swift. At least a dozen French brands, including Armor Lux and Figaret, have announced plans to pull their products from BHV in protest. Even Disneyland Paris reportedly scrapped its plans to design BHV’s iconic Christmas window displays this year.

BHV’s director, Karl-Stéphane Cottendin, appeared unfazed while speaking to BFMTV, and brushed off the departures as insignificant among the “more than 2,000 brands” sold at BHV. “Everyone is free to make their own decisions. We have no problem at all with that,” he said.

If Shein’s debut wasn’t controversial enough, a giant poster of Merlin standing beside Shein executive Donald Tang appeared on the BHV façade last week, captioned, “The poster that we shouldn’t have made?”

Embed from Getty Images

The banner’s placement directly across from Paris City Hall, one of Shein’s loudest critics, made the provocation even clearer.

Shein’s Paris launch was nearly derailed days earlier by revelations that the company’s site sold “childlike” sex dolls. France’s finance minister threatened to ban Shein altogether, while the Children’s Commissioner, Sarah El-Haïry, condemned the products, calling buyers “potential predators.”

“No one has the right to buy pedo-criminal dolls. These are deliberate miniature copies of children that hold teddy bears, that wear children’s clothing.”

Prosecutors have opened investigations into Shein, Temu, AliExpress, and Wish for allegedly distributing “violent, pornographic, or degrading content accessible to minors,” and further probes into Shein and AliExpress for spreading “images or depictions of minors of a pornographic nature.”

Shein told CNN that it had banned all sex doll listings and strengthened internal controls, emphasizing that “every seller is responsible for their own listings.” Speaking to the BBC, Shein stated it “has also strengthened its keyword blacklist to further prevent attempted circumvention of product listing restrictions by sellers.” Tang further emphasized that the allegations were being taken seriously.

“The fight against child exploitation is non-negotiable for Shein. These were marketplace listings from third-party sellers, but I take this personally. We are tracing the source and will take swift, decisive action against those responsible.”

SGM’s Merlin said he had been prepared to cancel the Shein partnership after hearing about the dolls, but the swift ban convinced him to proceed. BHV’s Cottendin defended the store’s decision, arguing that scandals like this highlight “the necessity of a physical store, because in a physical store these types of situations would never have taken place.”

forever 21

Forever 21 Files for Bankruptcy Again as Shein, Temu, and Amazon Dominate Fast Fashion

/in /by

Forever 21 filed for bankruptcy protection for the second time in six years on Sunday, announcing plans to shutter its U.S. operations amid declining foot traffic in shopping malls and increasing competition from fast-fashion e-commerce giants such as Amazon, Temu, and Shein.

The retail chain’s U.S. operating arm has started liquidation sales across more than 350 locations and plans to cease operations entirely unless a suitable buyer emerges, according to recent court filings.

Forever 21 has actively searched for buyers over several months, reaching out to over 200 potential parties, with approximately 30 expressing serious interest by signing confidentiality agreements. However, none of these discussions yielded a viable agreement, leaving the retailer poised for liquidation.

In a statement, the company’s co-chief restructuring officer, Stephen Coulombe, attributed Forever 21’s latest financial struggles to heightened competition driven by online retailers Shein and Temu. Both companies exploit the “de minimis exemption,” a trade loophole allowing goods priced under $800 to enter the U.S. duty-free, significantly impacting domestic retailers like Forever 21, which must bear import duties.

“Certain non-U.S. online retailers that compete with the debtors, such as Temu and Shein, have taken advantage of this exemption and, therefore, have been able to pass significant savings onto consumers. Consequently, retailers that must pay duties and tariffs to purchase product for their stores and warehouses in the United States, such as the company, have been undercut.”

Coulombe added, “Despite widespread calls from U.S. companies and industry groups for the U.S. government to create a level playing field for U.S. retailers by closing the exemption, U.S. laws and policies have not solved the problem.”

Embed from Getty Images

Past attempts to counteract Shein’s dominance included a partnership initiated by Sparc Group, Forever 21’s operating company owner, in 2023. As part of the joint venture, Shein acquired about a third of Forever 21′s Sparc Group. Sparc also took a minority stake in Shein. The partnership allowed Shein to sell Forever 21 products on its site. It also allowed customers to return Shein-bought items in several hundred physical Forever 21 locations across the United States. However, the effort was insufficient to reverse losses or influence trade policy reform.

“The ability for non-U.S. retailers to sell their products at drastically lower prices to U.S. consumers has significantly impacted the Company’s ability to retain its traditional core customer base.”

While Forever 21’s U.S. operations face liquidation, the brand, owned by Authentic Brands Group, is expected to survive internationally. According to a recent CNBC report, the brand name and other intellectual property controlled are not for sale, and its international stores and website are anticipated to continue running.

Jarrod Weber, global lifestyle president at Authentic Brands Group, has expressed optimism about attracting new partners and operators interested in revitalizing the brand within the U.S. market, stating, “We are receiving lots of interest from strong brand operators and digital experts who share our vision and are ready to take the brand to the next level.”

“Our U.S. licensee’s decision to restructure its operations does not impact Forever 21′s intellectual property or its international business. It presents an opportunity to accelerate the modernization of the brand’s distribution model, setting it up to compete and lead in fast fashion for decades to come. We’re building a direct creation-to-shelf model that moves faster.”

Embed from Getty Images

After its initial bankruptcy filing in 2019, Forever 21 returned to profitability, reporting revenues of $2 billion and earnings before interest, taxes, depreciation, and amortization (EBITDA) of $165 million in fiscal 2021, under new ownership by Authentic Brands Group and major landlords Simon Property Group and Brookfield Property Partners.

Yet the company’s financial performance steadily deteriorated amidst rising inflation, supply chain issues, and shifting consumer preferences, accumulating over $400 million in losses in the past three fiscal years alone. Projected losses for fiscal 2025 stand at an additional $180 million.

Forever 21’s struggles also prompted drastic cost-cutting measures, including requests for rent reductions from landlords of up to 50%. Although these efforts secured around $50 million in savings, the amount was insufficient to offset mounting losses. Currently, the company carries debts totaling $1.58 billion, along with over $100 million owed to clothing suppliers, primarily in China and Korea.

The company, which was founded in 1984, was once a dominant force in fast fashion, employing over 43,000 people and generating annual revenues exceeding $4 billion at its peak. Its ongoing challenges highlight the rapidly changing dynamics within the retail and fashion industries.

Part of the problem, according to GlobalData managing director Neil Saunders, is that Forever 21 stores are too large for their present needs and are located in malls where there are not enough shoppers.

“Forever 21 was always a retailer living on borrowed time. Over recent years, it has been hit with dual headwinds from a weak apparel market and stiff competition from cheap Chinese marketplaces. Both things have eroded its standing and depleted its market share.”

shein

Shein And Forever 21 To Go Into Business Together 

/in , /by

Fast fashion retailers Shein and Forever 21 are going into business together in a new partnership agreement that was announced last Thursday. 

Under the agreement, Shein will acquire around one-third of the interest in Sparc Group, Forever 21’s operator. Sparc will also become a minority shareholder in Shein. 

Embed from Getty Images

In a joint release statement, the companies stated that the deal is expected to expand Forever 21’s distribution on Shein’s global e-commerce platform, which has around 150 million online users. The partnership will also “offer the opportunity to test” Shein product sales and returns in physical Forever 21 stores across the US. 

Forever 21 currently has over 540 locations worldwide and online, and the specific financial details have not been disclosed in the statement. 

Sparc is a joint venture company that also includes mall operator Simon Property Group and brand development company Authentic Brands Group. Sparc also distributes apparel for brands like Eddie Bauer, Reebok, and Aéropostale. 

Shein has had a major rise in popularity in the US due to their low-cost apparel and items. 

Neil Saunders, managing director of GlobalData Retail, according to AP, says that “the new partnership makes sense for both parties — Forever 21, which still struggles some in the fast-fashion world, could see fast growth on Shein’s sizeable online platform and that Shein will also hope that the addition of a well-known American name will help to lessen focus on its manufacturing practices, which have come under scrutiny.”

Embed from Getty Images

Both Shein and Forever 21 are also no stranger to controversy over the way they run their businesses. Between the environmental impact of the way the clothes are produced and distributed and the allegations of unethical labor practices, fast fashion companies have been consistently called out. 

There’s been many ongoing conversations and concerns from lawmakers and advocacy groups over the unethical practices that occur within these facilities. 

According to the Associated Press: “In May, a bipartisan group of two dozen lawmakers asked the Securities and Exchange Commission to put the brakes on an initial public offering by Shein until it verified that it does not use forced labor from the country’s predominantly Muslim Uyghur population. A June Congressional report also unloaded a blistering critique of Shein and another Chinese fashion retailer, Temu — which sued Shein last month, accusing its rival of violating U.S. antitrust law by preventing garment makers from working with it.”

Back in June Shein said that “the company’s policy is to comply with the customs and import laws of the countries in which we operate. [We have} zero tolerance for forced labor and have implemented a robust system to ensure compliance with U.S. law.”

When speaking of the partnership, Saunders said, “while both Shein and Forever 21 are expected to benefit from the newly-announced partnership, Shein still has an advantage as it is operating from a position of strength and is already taking share away from Forever 21, and others. This is something of an admission by Forever 21 that it is not able to engineer growth in its own business in the way that it would like. There is an element of ‘if you can’t beat them, join them.’”