Government faces backlash over Shein support ahead of opening of Cork pop-up
Simon Coveney, opening Shein's Dublin HQ, spoke of Ireland’s attraction for foreign direct investment firms.
The Government’s support for Chinese-based fashion retailer Shein has been labelled “tone-deaf” by critics, with the company facing allegations of worker mistreatment and contributing to the climate crisis.
Supported by IDA Ireland, the Guangzhou-based clothing brand celebrated the opening of its EMEA headquarters in Dublin this week, with Enterprise Minister Simon Coveney calling the move “a vote of confidence” for Ireland at a ribbon-cutting ceremony.
Welcoming Shein’s expansion, Mr Coveney credited Ireland’s attractiveness to foreign direct investment (FDI) companies.
“I wish all the team at Shein the very best in their new Dublin office and ventures,” he said.
Following the announcement, IDA Ireland, the agency responsible for attracting foreign investment, received a wave of backlash online, with the Government labelled “tone-deaf” as critics pointed to accusations of Shein’s mistreatment of workers and use of cheap and hazardous materials.
The company’s new Europe, Middle East, and Africa (EMEA) headquarters marks its latest expansion into the Irish market, following announcements last week that it would open a four-day pop-up store in Cork city centre this weekend, which has also faced considerable backlash.
This is the second pop-up venue Shein has opened in Ireland, with its last venture in Jervis Shopping Centre in Dublin attracting more than 4,000 customers a day.
“Shein’s business model exploits cheap labour and our natural resources, with the goal being to sell as many items as possible,” said Green Party MEP Grace O’Sullivan.
Ms O’Sullivan, who launched a clothes swap in her Cork constituency office last month, called on people to make more sustainable fashion choices.
“Shein’s expansion in Ireland might be welcomed by some as a boost for the country, but it should be weighed up against the company’s wider impact on society, the environment, and the workers’ rights of those involved in the fashion industry worldwide,” she told the .
Founded in 2008 by current chief executive Chris Xu, the Chinese company has since expanded, with distribution hubs across Poland, Italy, and the UAE.
It has been accused of contributing to the climate crisis due to its use of cheap synthetic fossil-fuel fibres, toxic dyes, plastics, and microplastics to make clothes, sold at low prices.
According to a report published by Greenpeace last year, the company’s business model was based “on hazardous chemicals and environmental destruction”. The report criticised Shein’s “careless attitude towards environmental and human health risks associated with the use of hazardous chemicals”.
The company has faced accusations of underpaying employees working up to 18 hours a day in its Chinese factories. Following the accusations, Shein said it had made monetary donations and donations in kind to charities including the Marie Keating Organisation and Society of St Vincent de Paul.
