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Italy's Antitrust Opens Probe into Shein over Environmental Claims

FILE PHOTO: People walk past an advertisement for Shein, March 8, 2024 in London, Britain. REUTERS/Suzanne Plunkett/File Photo
FILE PHOTO: People walk past an advertisement for Shein, March 8, 2024 in London, Britain. REUTERS/Suzanne Plunkett/File Photo
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Italy's Antitrust Opens Probe into Shein over Environmental Claims

FILE PHOTO: People walk past an advertisement for Shein, March 8, 2024 in London, Britain. REUTERS/Suzanne Plunkett/File Photo
FILE PHOTO: People walk past an advertisement for Shein, March 8, 2024 in London, Britain. REUTERS/Suzanne Plunkett/File Photo

Italy's antitrust agency has launched an investigation into Dublin-based Infinite Styles Services CO. Limited, which manages the Italian website of Shein, over possible misleading environmental claims on the website.
The company is seen as trying "to convey an image of production and commercial sustainability of its garments through generic, vague, confusing and/or misleading environmental claims," Italy's antitrust said in a statement.
Some of the information on the clothing collection 'evoluSHEIN', declared by the company to be sustainable, could mislead consumers about the amount of green fibres used, while also failing to inform them about the fact the garments cannot be further recycled, Reuters quoted the authority as saying.
Italy's antitrust also said that Infinite Styles Services CO. Limited appeared to emphasize its commitment to the decarbonization process, while the targets indicated on Shein's website appear to be contradicted by the increase in greenhouse gas emissions indicated in Shein's sustainability reports for 2022 and 2023.
A Shein spokesperson did not immediately reply to a request for comment.
Founded in China, Shein is known for its cheap tops and dresses. Its treatment of workers and environmental record have come under increased scrutiny.

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Fashion

Chanel to Keep Investing Despite Choppy Luxury Market

A man looks at a Chanel shop window at Bahnhofstrasse in Zurich, Switzerland April 30, 2025. (Reuters)
A man looks at a Chanel shop window at Bahnhofstrasse in Zurich, Switzerland April 30, 2025. (Reuters)
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Chanel to Keep Investing Despite Choppy Luxury Market

A man looks at a Chanel shop window at Bahnhofstrasse in Zurich, Switzerland April 30, 2025. (Reuters)
A man looks at a Chanel shop window at Bahnhofstrasse in Zurich, Switzerland April 30, 2025. (Reuters)

French luxury group Chanel will continue to invest heavily this year, drawing on its deep pockets as other sector players pull back, with plans for new stores in China and the United States, despite volatility in both markets, it said on Tuesday.

"We continue to navigate in very uncertain times," group finance chief Philippe Blondiaux told Reuters.

He flagged "positive signs of stabilization" in China and Hong Kong, but said it was still "too early to say" the region had turned a corner, while ongoing talks on tariffs were causing "a lot of uncertainty."

Despite a 4.3% drop in sales last year, the French label, known for its double C logo, quilted leather handbags and No. 5 perfume, said it planned to stick to last year's capital spending level of $1.8 billion, which was a 43% increase from the previous year. It will also invest $600 million in supply chains as it internalizes production, including buying shares in a silk supplier in France and a jewellery maker in Italy.

Chanel sales for the year ending December 31 reached $18.7 billion, weighed down by a slump in China, while operating profit fell 30%.

Chanel plans to add 48 stores this year, nearly half in the US and China, as well as in Mexico, India and Canada. Only six of the new outlets will be fashion stores.

"Macroeconomic and geopolitical volatility are unquestionably challenging for business and we've seen these conditions have an impact on sales in some markets," said global CEO Leena Nair.

Chanel, which increased prices by around 3% last year to keep up with inflation, may raise them further this year, in line with inflation, Blondiaux said. Higher gold prices may lead to higher price increases for the jewellery range, he added.

Nair said that new creative director Matthieu Blazy, who was named in December to replace Virginie Viard, would not introduce menswear - a topic of recurrent speculation.

Blazy's appointment comes amid a broad designer reshuffle across the industry, with new names at top brands including Gucci, Dior, Balenciaga and Valentino, as executives seek to reignite sales growth.

Chanel is owned by French billionaire brothers Alain Wertheimer and Gerard Wertheimer.

Last year, sales at LVMH, the world's biggest luxury group, rose 1%, with US and European markets helping to offset a slump in Asia, while Hermes, which has outpaced rivals, posted nearly 15% growth, with growth in all regions, including Asia.

Luxury groups had hoped the US market would help lift the sector out of a slump this year, but uncertainty over tariffs has dashed hopes for a quick bounce-back, with consultancy Bain lowering its sector sales forecast to a likely fall of between 2% and 5% this year.