Slavery Allegations Taint Dominance of Chinese Fast Fashion Giant
In recent years, Chinese e-commerce giants like Temu and Shein have made significant strides in capturing the Australian and New Zealand markets. With their low prices and quick delivery, they have become go-to destinations for fashion-forward shoppers. However, these companies are now facing allegations of involvement in forced labor, tarnishing their dominance in the fast fashion industry.
Temu, a retailer owned by Chinese company PDD Holdings, which operates the Pinduoduo brand, has reportedly generated a staggering $2.44 trillion yuan (AU$506 billion) in gross merchandise during the height of the pandemic in 2021. Research company Roy Morgan revealed that over 1.26 million Australian shoppers visited Temu each month from July to December 2023, resulting in annual sales of $1.34 billion. Similarly, Shein has amassed over 800,000 shoppers each month for its clothing and accessories.
Despite sourcing its products from China, Temu has established offices in the United States and expanded into Western countries, offering bargain deals on various products. Through aggressive marketing strategies, including pop-up ads on search engines and social media platforms, Temu aims to change customer behavior by steering them away from traditional retailers and towards its factory-direct model.
However, the success of these e-commerce giants is overshadowed by allegations of forced labor within their supply chains. The U.S. House Select Committee on the Chinese Community Party produced a report in September 2023 that raised concerns about Temu’s compliance with fair trade and manufacturing principles. The report highlighted a code of conduct that suppliers must adhere to but also noted a loophole that allows Temu to distance itself from potentially nefarious suppliers.
Moreover, Temu does not have any system in place to ensure compliance with the Uyghur Forced Labor Prevention Act (UFLPA), which aims to eliminate forced labor among China’s minority Muslim population. As a result, there are concerns that shipments from Temu containing products made with forced labor are regularly entering the United States.
In response to these allegations, Temu stated that it prohibits forced, penal, or child labor and requires all business partners to comply with regulatory standards. However, critics argue that Temu is blurring the ethical line around consumerism. Interviews conducted by The Epoch Times with Temu customers in New Zealand revealed mixed opinions. While some shoppers acknowledged the allegations but did not let them affect their buying choices, others expressed a willingness to change their purchasing behavior if the allegations were proven true.
Janene, a mother of two from Auckland, admitted that she relies on Temu for its affordability and quick delivery when buying items for her children. When confronted with the allegations of slavery, she confessed, “I guess I never really think about it, you know, out of sight, out of mind.” On the other hand, Nadine, a student, stated that she would change her buying habits if the mistreatment of workers could be proven. She emphasized that money isn’t everything and that she would prefer to make online purchases with a clear conscience.
The allegations of forced labor have cast a shadow over the dominance of Chinese fast fashion giants like Temu and Shein. As consumers become more conscious of ethical issues surrounding their purchases, these companies may face significant challenges in maintaining their customer base. Ultimately, it is up to shoppers to decide whether they prioritize affordability and convenience or ethical practices when it comes to their fast fashion needs.
