Inside Shein’s Supply Chain: A Peek Into the “Shein Village” Powering the Global Fashion Giant

Feature and Cover Inside Shein’s Supply Chain A Peek Into the “Shein Village” Powering the Global Fashion Giant

The constant hum of sewing machines fills the air in parts of Guangzhou, a bustling port city along the Pearl River in southern China. This relentless sound resonates from the open windows of factories from early morning until late at night, as workers tirelessly craft t-shirts, shorts, blouses, pants, and swimwear destined for wardrobes in over 150 countries.

This is the soundtrack of Panyu, a neighborhood widely referred to as the “Shein village.” This dense network of factories is at the core of Shein’s meteoric rise, a global fast-fashion juggernaut. “If there are 31 days in a month, I will work 31 days,” one worker told the BBC. Most workers said they get only a single day off each month.

A BBC investigation spent days in Panyu, visiting 10 factories, speaking to four owners, and interviewing more than 20 workers. Labor markets and textile suppliers were also part of the inquiry, uncovering a grueling reality—factory workers put in about 75 hours a week, violating Chinese labor laws.

The Heartbeat of Fast Fashion

Excessive working hours are not uncommon in Guangzhou, a hub for migrant workers seeking better wages, nor are they unusual across China, the world’s manufacturing powerhouse. But Shein’s rapid growth has attracted scrutiny regarding its labor practices. Once a little-known Chinese startup, Shein is now valued at £54 billion ($66 billion) following a 2023 fundraising round and is eyeing a potential listing on the London Stock Exchange.

This success, however, has been shadowed by controversy, including allegations of forced labor and the employment of underage workers. In 2022, Shein admitted to discovering children working in its factories.

In response to the BBC, Shein stated, “Shein is committed to ensuring the fair and dignified treatment of all workers within our supply chain” and emphasized its investment of tens of millions of dollars in strengthening governance and compliance. The company added, “We strive to set the highest standards for pay and require that all supply chain partners adhere to our code of conduct.”

The Business Model

Shein’s triumph is built on volume and affordability. Its online inventory features hundreds of thousands of items, offering dresses for £10, sweaters for £6, and other products averaging below £8. The brand’s revenue has surged past competitors like H&M, Zara, and Primark, thanks to its cost-efficient suppliers in the Shein village, which houses some 5,000 factories.

These buildings, stripped down to accommodate sewing machines and fabric rolls, operate as round-the-clock production hubs. Deliveries and collections occur throughout the day, with factory doors wide open to ensure seamless operations. Even as the clock strikes 10:00 p.m., the hum of sewing machines persists, with fabric-laden trucks arriving to replenish supplies.

“We usually work 10, 11, or 12 hours a day,” a 49-year-old worker from Jiangxi shared. “On Sundays, we work around three hours less.” Workers earn wages per piece, with simpler items like t-shirts fetching one to two yuan (less than a dollar) per piece.

Many workers, particularly migrants, rely on these earnings to support families back home. A woman from Jiangxi explained, “The cost of living is now so high. I hope to make enough to send back to my two children living with their grandparents.”

Long Hours, Low Pay

The BBC found that the standard workday extends from 8:00 a.m. to past 10:00 p.m., a finding echoed by a report from Public Eye, a Swiss advocacy group. Public Eye noted that workers’ base pay—2,400 yuan (£265; $327) without overtime—is far below the 6,512 yuan identified by the Asia Floor Wage Alliance as a “living wage.”

David Hachfield from Public Eye called the conditions “an extreme form of exploitation,” adding, “These hours are not unusual, but it’s clear that it’s illegal and violates basic human rights.” Chinese labor laws stipulate a 44-hour workweek, with at least one rest day. Overtime is only permissible for special reasons.

The Global Implications

Although Shein has relocated its headquarters to Singapore, most of its production remains firmly rooted in China. The company has also drawn scrutiny in the U.S., where politicians like Senator Marco Rubio have expressed concerns about Shein’s connections to the Chinese government. Rubio alleged, “Slave labor, sweatshops, and trade tricks are the dirty secrets behind Shein’s success.”

Rights groups acknowledge that while terms like “slave labor” may not entirely apply, the exploitative working hours in Guangzhou warrant serious attention. “The machines dictate the rhythm of the day,” one worker said, describing the regimented schedules punctuated only by quick meals in factory canteens or on the street.

Shein’s practices have also been criticized for sourcing cotton from Xinjiang, a region accused of using forced labor involving Uyghur Muslims—a claim Beijing has repeatedly denied. Sheng Lu, a fashion professor at the University of Delaware, believes transparency is the key to addressing such concerns: “Unless you fully release your factory list and make your supply chain more transparent, it will be challenging for Shein.”

The Competitive Edge

Despite the controversies, China’s comprehensive supply chain infrastructure gives Shein a significant advantage. Unlike competitors in Vietnam or Bangladesh, which rely on Chinese imports for raw materials, Chinese factories have local access to everything from fabric to zippers. This enables Shein to quickly scale production based on real-time consumer demand, monitored through its algorithm.

“When shoppers repeatedly click on a certain dress or spend longer looking at a wool sweater, the firm knows to ask factories to make more—and fast,” Sheng explained.

However, this efficiency comes at a cost. Factory owners often struggle to maintain profitability. “Shein controls the price, and you have to think about ways to reduce the cost,” said a factory owner, noting that temporary workers are often brought in to meet surging demand.

A Mixed Reputation

For some factory owners and workers, Shein represents stability and opportunity. “Shein is a pillar of the fashion industry,” said supplier Guo Qing E. “It pays on time, no matter the amount.”

Yet for many workers, the grueling hours and modest pay overshadow the company’s reliability. As a 33-year-old factory supervisor summed up, “The hours are long, but we get on well with each other. We are like a family.”

Even late into the night, factories remain lit as some workers voluntarily stay on to earn more money. Their efforts fuel a global demand for Shein’s affordable fashion, with an average of one million packages shipped daily.

“This is the contribution we Chinese people can make to the world,” the supervisor added.

For Shein, the challenge lies in maintaining its dominance while addressing ethical concerns. With plans for a public listing, the stakes have never been higher. As Sheng Lu noted, “If Shein successfully achieves an IPO, it will signify recognition as a reputable company. But to retain investor confidence, they must take responsibility.”

For now, as the sewing machines continue to hum in Panyu, Shein’s rapid ascent remains both a testament to Chinese manufacturing and a stark reminder of the human cost behind fast fashion.

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