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The Clothing Retail Industry

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17 views10 pages

The Clothing Retail Industry

Uploaded by

Julia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

THE CLOTHING

RETAIL INDUSTRY:
SHEIN
Julia Leeming
PESTLE ANALYSIS
 SOCIAL RESPONSIBILITY – External Business Environment

 FACTORS:
 Social structures
 Health consciousness
 Lifestyle choices
 Cultural trends
 Societal ideals
 Level of education within a society

 POSITIVES:
 Influence consumer behavior
 Market demand
 Industry norms
 Innovation
 Drive positive change
 Uphold moral standards

 NEGATIVES:
 Decrease in sales
 Decrease in profits
 Negative brand reputation
SHEIN

 SHEIN stands out for its significant


negative impact socially through:
 Fast fashion model
 Exploitation of forced labor
 Human rights violations
 Overproduction
 Excessive consumption
 Lack of sustainability practices
EVALUATION OF
ARTICLES
 Article 1: Global Affairs
 Shein and Temu's strategies for complying with US labor laws
 Prohibiting products made from forced labor
 The methods these companies use to navigate regulations (especially
concerning labor practices)
 Article 2: Ethical Consumer
 Fast fashion
 Addressed issues:
 Environmental degradation, labor exploitation, and consumerism

 Article 3: LinkedIn
 Social issues within the fast fashion industry
 Focusing on: overproduction, overconsumption, and their contribution to
landfill waste
 Article 4: Lawdit.co.uk
 Legal aspects related to SHEIN
 Controversies: allegations of racketeering
EVALUATION OF ARTICLES
CONT.
 Article 5: Vox Article
 SHEIN's environmental and human rights violations
 Impact on workers and the environment.

 Article 6: Quora
 User-generated content discussing labor conditions in SHEIN's factories
 The working conditions in said factories

 Article 7: Sustainable Review


 SHEIN's sustainability practices, or lack thereof
 SHEIN's business model
 Environmental footprint
SIMILARITIES &
DIFFERENCES
 Labor Practices:
 SHEIN’S labor conditions (use of forced labor.)
 Labor issues within SHEIN’S supply chain
 Labor violations and exploitation.

 Environmental Impact:
 The environmental consequences of Shein's fast fashion
model
 Overproduction, overconsumption, and resource
exploitation
 Pollution and landfill waste.

 Ethical Concerns:
 Broader ethical implications of fast fashion
 Workers' rights, social inequalities, and consumer
behavior.
 Legal Issues:
 Legal troubles (copyright infringement and racketeering
allegations)
POSSIBLE STRATEGIES
 1. Transition to sustainable practices:

 - Strategy: SHEIN can adopt sustainable and ethical sourcing


practices, emphasizing fair labor conditions, environmentally-friendly
materials, and transparent supply chains.
 - Counter-Argument: Transitioning to sustainable practices may
initially incur higher costs, leading to less consumers buying products,
potentially impacting SHEIN’S profit.

 2. Introduce slow fashion:

 - Strategy: Shift towards a "slow fashion" model, promoting


timeless designs and quality over quantity to reduce overconsumption.
 - Counter-Argument: WIth SHEIN’S ability to always be trendy and
provide new products for their consumers may result in a loss of
valued customers. Also implementing a slow fashion model
successfully could be challenging due to the rapid pace of consumer
demand.
 3. Invest in worker welfare:

 - Strategy: Improve working conditions, provide fair


wages, and ensure workers' rights are respected,
addressing issues related to exploitation and human
rights violations which is largely seen in SHEIN’S
working force.
 - Counter-Argument: Higher labor costs may lead to
POSSIBLE increased product prices, potentially affecting SHEIN’S
STRATEGIES competitive advantage.

CONT  4. Raise fast fashion awareness:

 - Strategy: SHEIN could raise awareness among


consumers about the environmental and social impacts
of fast fashion, on all social media platforms,
encouraging conscious consumption.
 - Counter-Argument: Changing consumer behavior
around fast fashion ideas may take a long time, and
immediate results might be challenging to achieve or
see.
EVALUATION
 Significant impact on SHEIN's performance.

 SHEIN's unethical practices may lead to a:


 Damaged reputation
 Decreased brand loyalty and trust.

 Concerned consumers may choose to stop buying SHEIN products, and rather buy from brands with
better ethical and sustainability standards
 Legal attention, leading to potential fines, legal action, ext.

 Implementing sustainable practices:


 Significant financial aid (impacting its financial department.)

 Competitors may gain a competitive advantage


 causing a loss of clients for SHEIN.

 If SHEIN doesn't implement strategies to solve said social issue SHEIN will decline in:
 Sales
 Customer loyalty
 Profit (bankruptcy.)
IN
CONCLUSION…
SHEIN's operations reveals a complex relationship with

social, ethical, and environmental challenges.
 Urgency for action within the fast fashion industry.
 SHEIN has raised significant concerns.
 Strategies suggested are seen as potential solutions.
 However, implementing these strategies requires a lot
of effort and time from SHEIN.
 Failure to address these issues:
 Irreparable damage to SHEIN's reputation
 Declining sales
 A negative brand image
 Bankruptcy.

 It is vital for SHEIN to change and embrace a more


ethical and sustainable approach

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