Tag: Fast fashion

Singapore – Popular fast fashion retailer SHEIN has laid 17 employees in Singapore, as confirmed by the company to MARKETECH APAC. This is despite reported plans that the brand is aiming for an IPO at the London Stock Exchange (LSE).

In a statement by a SHEIN spokesperson, it had stated that the employees come from the company’s IT research and development (R&D) arm, and were notified on September 25.

“As SHEIN continues to grow its operations in Singapore with a newly expanded office to accommodate its increasing workforce, the company has also restructured the Singapore arm of its IT R&D team, relocating some positions to other markets as part of its ongoing strategy for continued global expansion, localisation and to drive efficiency. A total of 17 employees in the Singapore office have been affected and were notified on September 25, 2024,” the spokesperson told MARKETECH APAC.

While it did not detail particulars on retrenchment packages to the employees, the spokesperson said that it has committed to support the affected employees throughout the transition period.

“We are committed to working with the affected employees throughout this transition period, providing necessary support and assistance, as well as the opportunity to apply for alternative roles to support localisation efforts in other markets,” the spokesperson added.

SHEIN is reportedly aiming for a London IPO after a planned New York IPO in 2023 came under fire, with both Republicans and Democrats opposing the public listing.

Despite SHEIN being one of the most popular fast fashion brands globally–estimated to have a US$22.7b annual revenue in 2022 according to Statista–the brand itself has been repeatedly criticised over its production practices that promote wastage and pollution, as well as various claims of plagiarised designs of its items that are derived from popular brands.

In August 2023, SHEIN had signed a strategic partnership with SPARC Group, the parent company of Forever 21, in a bid to expand SPARC Group’s distribution of Forever 21, adding value and variety for SHEIN’s extensive customer base.

Sweden – The Swedish-grown fast-fashion brand H & M has revealed in its nine-month financial report that it will be shutting down 250 of its physical stores by 2021.

H & M disclosed that it has been putting stores into temporary closure since March due to the negative impact on sales development brought about by the pandemic, where at most, approximately 80 percent of the group’s stores have been shut down.

CEO Helena Helmersson said that the coronavirus outbreak prompted more customers to start shopping online during the pandemic, and they are making it clear that they value a convenient and inspiring experience in which physical stores and online channels interact and strengthen each other.

“The substantial investments made in recent years have been very important for our recovery and we are now accelerating our transformation work further to meet customers’ expectations. We are increasing digital investments, accelerating store consolidation, and making the channels further integrated. To ensure that our offerings are relevant to customers and improve availability in all channels, speed and flexibility will be even more important in the future, particularly in the supply chain.”

Currently, the brand operates its own online shopping website, www2.hm.com.