A model checks the details of a chosen item with Alibaba’s FashionAI technology, being displayed on the mirror, at a pop-up store in partnership with fashion brand GUESS, on the sidelines of the Artificial Intelligence on Fashion and Textile Conference at the Hong Kong Polytechnic University in Hong Kong, China July 3, 2018. Picture taken July 3, 2018. REUTERS/Bobby Yip
HONG KONG, Aug 9 (Reuters Breakingviews) – Shein, the highly Instagrammable Chinese fast-fashion company, is being hauled over the coals. The company, estimated 12 months ago to be worth $15 billion, failed to make UK-mandated public disclosures about its working conditions and had stated falsely that it relies on factories certified by international labour standards organisations, according to a Reuters exclusive read more .
Unlike Zara’s owner Inditex (ITX.MC) and H&M (HMb.ST), Shein is a private company so doesn’t have to reveal much about its operations. And accusations of wrongdoing don’t necessarily hit the top line. British online fashion retailer Boohoo’s (BOOH.L) revenue surged 32% in the three months to the end of May, about two months after U.S. authorities decided to investigate claims of poor supply-chain work practices.
That’s not the only number to focus on, though. Thanks in part to growing concern read more from activist investors, Boohoo’s market value has fallen over 20% since March. Gen Z buyers of $3 crop tops aren’t the only ones who can determine what’s fashionable. [By Sharon Lam]
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Editing by Antony Currie and Katrina Hamlin
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