By John Meyer, consultant in financial affairs – Eurasia Business News, September 25, 2024. Article No 1239.
Italy’s antitrust agency has initiated an investigation into Infinite Styles Services CO Limited, the Dublin-based company managing Shein’s Italian website, concerning potentially misleading environmental claims. This probe, announced on September 25, focuses on allegations that Shein has been presenting vague and confusing information regarding the sustainability of its products, particularly under sections labeled “#Sheintheknow,” “evoluSHEIN,” and “Social Responsibility” on its website.
The antitrust authority contends that Shein’s claims about the sustainability of its clothing collection, specifically the use of “green” fibers, may mislead consumers by failing to clarify that these garments are not recyclable. Additionally, the agency highlighted discrepancies between Shein’s stated commitment to decarbonization and the reported increase in greenhouse gas emissions in its sustainability reports for 2022 and 2023.
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This investigation reflects growing consumer sensitivity towards environmental impacts in the fast fashion industry, with Italy’s antitrust agency aiming to ensure that companies like Shein provide transparent and accurate information regarding their environmental practices.
As of 2024, Shein’s market value has experienced fluctuations, with recent estimates placing it between $64 billion and $68 billion ahead of a potential initial public offering (IPO). This represents a significant decline from its peak valuation of $100 billion in 2022, following a funding round. Despite this decrease, Shein remains a dominant player in the fast fashion industry, having generated approximately $32.5 billion in revenue in 2023, marking a substantial increase from previous years.
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© Copyright 2024 – Eurasia Business News. Article no. 1239.
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