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Chinese Fast-Fashion Giant Shein Aims to Be More Sustainable

Executive Vice Chairman of Chinese fast-fashion retailer Shein, Donald Tang, talks to public during the World Retail Congress in Barcelona, Spain April 25, 2023. (Reuters)
Executive Vice Chairman of Chinese fast-fashion retailer Shein, Donald Tang, talks to public during the World Retail Congress in Barcelona, Spain April 25, 2023. (Reuters)
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Chinese Fast-Fashion Giant Shein Aims to Be More Sustainable

Executive Vice Chairman of Chinese fast-fashion retailer Shein, Donald Tang, talks to public during the World Retail Congress in Barcelona, Spain April 25, 2023. (Reuters)
Executive Vice Chairman of Chinese fast-fashion retailer Shein, Donald Tang, talks to public during the World Retail Congress in Barcelona, Spain April 25, 2023. (Reuters)

Chinese fast-fashion retailer Shein plans to become more focused on sustainability, Executive Vice Chairman Donald Tang said on Tuesday, adding that consumers are no longer just concerned about affordability.

Shein sells $10 dresses and $5 tops and has taken market share from other affordable fashion retailers. The company produces clothing in China to sell online in the United States, Europe and Asia and has been criticized for promoting throwaway fashion.

"Consumers these days are no longer looking just at price: in the next phase to continue to grow you need to have ESG in mind," Tang said at the World Retail Congress in Barcelona.

ESG, an acronym for environmental, social, and governance, is a term used to describe corporations' efforts to be more responsible.

Tang said that Shein is offering customers an option to pick higher-quality materials and pay a premium for them for certain items.

He also mentioned Shein Exchange, the company's platform where shoppers can resell used clothes, which launched in the US in October and aims to start in other markets this year.

Shein continues to grow "very robustly", Tang said, and regularly has less than 2% of unsold inventory.

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UK's JD Sports Warns on Profit in 'Challenging' Market

A logo is seen outside the newly renovated JD Sports store at Westfield Stratford City in London, Britain, July 30, 2024. REUTERS/Hollie Adams/File Photo
A logo is seen outside the newly renovated JD Sports store at Westfield Stratford City in London, Britain, July 30, 2024. REUTERS/Hollie Adams/File Photo
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UK's JD Sports Warns on Profit in 'Challenging' Market

A logo is seen outside the newly renovated JD Sports store at Westfield Stratford City in London, Britain, July 30, 2024. REUTERS/Hollie Adams/File Photo
A logo is seen outside the newly renovated JD Sports store at Westfield Stratford City in London, Britain, July 30, 2024. REUTERS/Hollie Adams/File Photo

British sportswear retailer JD Sports Fashion downgraded its profit forecast after weaker trading in Britain and the United States and promotional activity at competitors hurt sales, and it warned the outlook was "cautious".
Shares in JD plunged 12% in early deals to a near five-year low of 84 pence, Reuters reported.
JD Sports, which has over 4,500 stores globally, said underlying revenue fell 1.5% in November and December in what it called a "challenging and volatile market".
It cut its profit forecast by as much as 40 million pounds ($48.9 million), or 4%.
The stock had already lost 27% of its value in the last three months on worries about consumer spending and amid a downturn in demand for Nike products, which account for about 45% of JD's sales.
"Market headwinds were higher than we anticipated," Chief Executive Régis Schultz said in a statement on Tuesday. "With these trading conditions expected to continue, we are taking a cautious view of the new financial year."
Peel Hunt analysts said JD's strategy of not discounting to match competitors was the right one.
"The long-term strategy is correct, and JD will continue to lead the market, but we must rein in short-term hopes," they said, adding that JD will benefit from any recovery at Nike.
Nike has warned its turnaround will be a slog after it lost ground in recent years to rivals, including Roger Federer-backed On and Deckers' Hoka, which have lured consumers with fresher and more innovative styles.
JD said while trading during December was stronger, November dragged, and for the 12 months to the beginning of February it expected pretax profit before adjusted items to come in between 915 million and 935 million pounds.
Its previous lower end of guidance had been 955 million pounds. It made 917.2 million pounds in its 2023/24 year.