Chile's Desert Dumping Ground for Fast Fashion Leftovers

Piles of used clothes have been discarded in Chile's Atacama Desert. MARTIN BERNETTI AFP
Piles of used clothes have been discarded in Chile's Atacama Desert. MARTIN BERNETTI AFP
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Chile's Desert Dumping Ground for Fast Fashion Leftovers

Piles of used clothes have been discarded in Chile's Atacama Desert. MARTIN BERNETTI AFP
Piles of used clothes have been discarded in Chile's Atacama Desert. MARTIN BERNETTI AFP

A mountain of discarded clothing including Christmas sweaters and ski boots cuts a strange sight in Chile's Atacama, the driest desert in the world, which is increasingly suffering from pollution created by fast fashion.

The social impact of rampant consumerism in the clothing industry -- such as child labor in factories or derisory wages -- is well-known, but the disastrous effect on the environment is less publicized.

Chile has long been a hub of secondhand and unsold clothing, made in China or Bangladesh and passing through Europe, Asia or the United States before arriving in Chile, where it is resold around Latin America.

Some 59,000 tons of clothing arrive each year at the Iquique port in the Alto Hospicio free zone in northern Chile.

Clothing merchants from the capital Santiago, 1,800 kilometers (1,100 miles) to the south, buy some, while much is smuggled out to other Latin American countries. But at least 39,000 tons that cannot be sold end up in rubbish dumps in the desert.

"This clothing arrives from all over the world," Alex Carreno, a former employee in the port's import area, told AFP.

"What is not sold to Santiago nor sent to other countries stays in the free zone" as no one pays the necessary tariffs to take it away.

"The problem is that the clothing is not biodegradable and has chemical products, so it is not accepted in the municipal landfills," said Franklin Zepeda, the founder of EcoFibra, a company that makes insulation panels using discarded clothing.

"I wanted to stop being the problem and start being the solution," he told AFP about the firm he created in 2018.

Water waste
According to a 2019 UN report, global clothing production doubled between 2000 and 2014, and the industry is "responsible for 20 percent of total water waste on a global level."

To make a single pair of jeans requires 7,500 liters (2,000 gallons) of water.

The same report said that clothing and footwear manufacturing contributes eight percent of global greenhouse gases, and that "every second, an amount of textiles equivalent to a garbage truck is buried or burnt."

Whether the clothing piles are left out in the open or buried underground, they pollute the environment, releasing pollutants into the air or underground water channels.

Clothing, either synthetic or treated with chemicals, can take 200 years to biodegrade and is as toxic as discarded tires or plastics.

Not all the clothing goes to waste: some of the poorest people from this region of 300,000 inhabitants pick through the dumps to find things they need or can sell in their local neighborhood.

Venezuelan migrants Sofia and Jenny, who crossed into Chile only a few days earlier on a 350-kilometer journey, search through a clothing pile as their babies crawl over it.

The women are looking for "things for the cold," given the desert's nighttime temperatures drop to levels unheard of in their tropical homeland.

Changing attitudes
Chile, the richest country in South America, is known for the voracious consumerism of its inhabitants.

Fast fashion advertising "has helped to convince us that clothing makes us more attractive, that it makes us stylish and even cures our anxiety," said Monica Zarini, who makes lamp shades, notebooks, containers and bags from recycled clothing.

Things are changing, though, according to Rosario Hevia, who opened a store to recycle children's clothes before founding in 2019 Ecocitex, a company that creates yarn from pieces of discarded textiles and clothing in a poor state. The process uses neither water nor chemicals.

"For many years we consumed, and no one seemed to care that more and more textile waste was being generated," she said.

"But now, people are starting to question themselves."



Analysts: Shein's Planned Hong Kong Listing to Benefit from Wider Capital Pool

FILE PHOTO: A company logo for fashion brand Shein is seen on a rail of clothing on its Christmas bus as part of a nationwide promotional tour in Liverpool, Britain, December 14, 2024. REUTERS/Phil Noble/File Photo
FILE PHOTO: A company logo for fashion brand Shein is seen on a rail of clothing on its Christmas bus as part of a nationwide promotional tour in Liverpool, Britain, December 14, 2024. REUTERS/Phil Noble/File Photo
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Analysts: Shein's Planned Hong Kong Listing to Benefit from Wider Capital Pool

FILE PHOTO: A company logo for fashion brand Shein is seen on a rail of clothing on its Christmas bus as part of a nationwide promotional tour in Liverpool, Britain, December 14, 2024. REUTERS/Phil Noble/File Photo
FILE PHOTO: A company logo for fashion brand Shein is seen on a rail of clothing on its Christmas bus as part of a nationwide promotional tour in Liverpool, Britain, December 14, 2024. REUTERS/Phil Noble/File Photo

Shein's planned listing in Hong Kong will help the online fast-fashion retailer avoid sharp investor scrutiny of its supply chains while tapping into capital from the mainland and emerging market investors, analysts said.

The Singapore-headquartered company has turned its public market debut ambitions to Hong Kong after failing to win Chinese securities regulatory approval to proceed with a London initial public offering, Reuters reported last month, citing sources.

While a listing, if successful, would be a big boost for Hong Kong, the move would cast a cloud over the company's efforts in recent years to gain legitimacy as a global, rather than a Chinese company. Shein, which sells products including $5 bike shorts and $18 sundresses, has faced political and environmental group pressure in the UK over its cotton sourcing and supply chain practices.

It has also faced allegations that its clothes contain cotton from China's Xinjiang region, where the US and NGOs have accused the Chinese government of human rights abuses and forced labor. Beijing denies any abuses.

The company, which moved its headquarters from China to Singapore in 2022, has previously said it has a zero-tolerance policy for forced labor and requires its contract manufacturers to only source cotton from approved regions.

"If it is the only option now open to them, the Hong Kong market does make sense as a place where you could list a global business with a mainland supply chain," said Eliot Fisk, a Hong Kong capital markets consultant and former JPMorgan banker.

Shein did not respond to a Reuters request for comment. Before its attempt to list in London, Shein had pursued a listing in New York. The China-founded company had also faced regulatory hurdles and pushback from US lawmakers in its attempt to list in the United States.

"Listing in Hong Kong would also likely dodge the protests and political pushback it might face in the UK," said Craig Coben, former Bank of America co-head of capital markets in Hong Kong.

While it is not known whether Shein plans to seek any waivers for a potential Hong Kong listing, several waivers, including disclosure-related waivers, can be sought by large IPO hopefuls in the Asian financial hub, according to capital market lawyers.

A Hong Kong listing would also allow Shein to eventually be added to the city's Stock Connect scheme which gives easier access for mainland and Hong Kong-based investors to buy shares on each country's respective markets more easily.

Shein would easily meet the market capitalization and other criteria for inclusion in the connect scheme and for attracting mainland investment, said Hong Kong-based advisory firm Emmer Capital Partners CEO Manishi Raychaudhuri.

There was a 255% year-on-year increase in average daily turnover in the first three months of the year in Southbound trading, mainland investors buying and selling Hong Kong stocks, the Hong Kong Exchange said in its first quarter results.

"Hong Kong would have a dominant presence of Asia and emerging market-focused investors. London on the other hand, would have a significant presence of global and developed market investors," Raychaudhuri said.

"The supply chain issues would have been a more important consideration for the latter set of investors."