The Leadership Brief: Shein executive vice chairman Donald Tang on what the company learned from the influencer trip fallout
from a group of designers accusing the company of copyright infringement and having a corporate structure that the suit alleges amounts to racketeering. In a statement responding to the lawsuit, the company said that ittakes all claims of infringement seriously” and that it would “take swift action when complaints are raised by valid IP rights holders.” The company also added that it will “vigorously defend” itself against the lawsuit “and any claims that are without merit.
How can you ensure transparency when you have so many different partners and suppliers spread out across China? We are on-demand fashion. We try to figure out what you want. And then we make it for you. So we always have very, very low single-digit inventory numbers. Whereas [other retailers] have to design things and then they stock them, market them and then sell them. And then they have leftovers. We have very, very little leftovers.If you are a consumer who spends a lot of time browsing, discovering and reflecting, basically you are designing.
First of all, we’re committed to better factory conditions and worker conditions. We do everything to prevent forced labor. That’s zero-tolerance for us.There’s a manual for how we deal with all these issues. Suppliers must agree to abide by the company’s Supplier Code of Conduct, which is aligned with International Labor Organization core conventions, as well as local laws and regulations. And then we have international, credible organizations do unannounced audits.
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