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shein

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

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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.

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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?”

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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.”

temu

EU Regulators Say Temu Isn’t Doing Enough to Prevent Sale of Illegal Products

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The European Commission has issued a sharp warning to Chinese e-commerce giant Temu, accusing the fast-growing online retailer of exposing European consumers to a flood of potentially illegal and unsafe products.

In preliminary findings released Monday, the Commission outlined multiple concerns about the platform’s compliance with the Digital Services Act (DSA)—a sweeping set of rules enacted to better protect internet users across the European Union.

The investigation into Temu, launched last year, is part of a broader effort by EU regulators to hold digital marketplaces accountable for what they host and promote.

According to the Commission, Temu’s current safety protocols may fall well short of the standards required by EU law. Investigators say a recent “mystery shopping” operation uncovered several non-compliant items being sold on the platform, including baby toys and small electronic devices.

While the Commission did not specify which laws these items violated, it noted that the rapid growth of online shopping in the EU has led to a corresponding spike in counterfeit and unsafe products entering the market. There is “a high risk for consumers in the EU to encounter illegal products” on Temu’s website, the Commission said in its statement.

It pointed to “inadequate mitigation measures” and criticized Temu’s internal risk assessments for being overly reliant on generic industry benchmarks rather than on specific data from its own marketplace.

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“Temu is a priority for us. The problems caused on the European market by non-compliant products coming from online marketplaces are an issue.”

Henna Virkkunen, the EU’s Executive Vice-President for Tech Sovereignty, Security, and Democracy, emphasized the seriousness of the situation in a news release.

“We shop online because we trust that products sold in our Single Market are safe and comply with our rules. In our preliminary view, Temu is far from assessing risks for its users at the standards required by the Digital Services Act.”

Temu, a subsidiary of Chinese tech firm Pinduoduo Inc., has seen explosive growth in recent years by offering ultra-low-cost products, ranging from fashion to home goods, primarily shipped from Chinese vendors.

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It currently boasts 92 million users across the EU and 185.6 million in the United States. However, the platform’s rise has also drawn scrutiny for how it manages seller activity and monitors product safety.

When they launched the probe, EU authorities stated that they would examine whether Temu was taking sufficient action to find and combat “rogue traders” or vendors who allegedly sell non-compliant or counterfeit goods, get suspended, and then quickly return under new identities. In its preliminary findings, the Commission deemed Temu’s approach to be insufficient.

The Commission says it will also look into other suspected rule violations on Temu, including the platform’s “addictive design features, the transparency of its recommendation systems, and its access to data for researchers.”

In a brief response, Temu stated that it “will continue to cooperate fully with the Commission,” but did not address the specific findings.

Under the DSA, platforms found in violation could face fines of up to 6% of their global annual revenue. They may also be ordered to take concrete steps to bring their operations into compliance.

Before the EU watchdogs reach a final conclusion, the company will have the opportunity to review the Commission’s investigative files and address the allegations.

As European authorities ramp up enforcement of the DSA, the outcome of this case may set a significant precedent for how global e-commerce platforms are held accountable for the goods they deliver to doorsteps.

forever 21

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

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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.”

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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.”

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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.”