Nick Beighton, former Asos CEO, evaluates Shein’s business model, labelling it both ‘genius’ and ‘terrifying’.
- Beighton highlights concerns about Shein’s production practices, citing transparency issues.
- He advocates for the London Stock Exchange as the ideal listing venue for ethical brands.
- The Source Fashion event showcased advancements in sustainable fashion and responsible sourcing.
- Next’s sustainability goals include 81% sustainably sourced cotton, aiming for 100% by 2025.
Nick Beighton, the former CEO of Asos, addressed Shein’s controversial business model during the Source Fashion trade show in London. He described Shein’s model as both ‘genius’ and ‘something to be terrified about’. Some industry practices, particularly regarding transparency in production, have raised significant concerns.
Beighton pointed to Shein’s lack of transparency and their ‘renowned opaqueness’ which makes him ‘extremely nervous’ about how the company produces its garments. This lack of clarity poses questions about ethical production standards.
Discussing Shein’s exploration of a flotation in London, Beighton stated his belief that the London Stock Exchange should attract only the ‘best brands, the best industries, and the highest standards’. Although Shein initially planned to list in New York, the plan was halted due to US lawmakers’ opposition.
The Source Fashion event, Europe’s largest garment manufacturing show, took place at London’s Kensington Olympia from 14-16 July. It prioritised innovations in sustainable materials and responsible sourcing, drawing significant attention from industry leaders.
Next, a prominent retailer, shared its progress towards sustainability, with clear targets for responsible sourcing of raw materials. Currently, 81% of its cotton is sustainably sourced, a notable increase from 67% last year. Their goal is to achieve 100% by 2025.
Suzanne Ellingham, organiser of the Source Fashion show, highlighted its rapid growth since inception. Starting with around 80 manufacturers in 2023, it now hosts over 300 exhibitors. The event plans to further expand to accommodate its growing footprint, moving to a larger venue in February 2025.
The discourse at Source Fashion underscored the fashion industry’s ongoing efforts to balance rapid production with ethical sourcing.
