Protesters holding placards reading “Shame on Shein” gathered outside Paris’s BHV Marais department store on Wednesday, hours before Chinese fast-fashion giant Shein opened its first permanent retail outlet.
The launch was clouded by criticism over the company’s low-cost business model and mounting legal controversies.
While dozens of shoppers queued for the 1 p.m. (1200 GMT) opening, accepting pastries from store workers as they waited, demonstrators stood nearby condemning Shein’s alleged exploitation and environmental harm.
The size of Shein's business in France is not known and the company did not reply to Reuters when asked about its revenues in the country, but according to its latest "transparency report" required by the EU under regulations on large platforms, Shein had 27.3 million average monthly users in France between February and July.
The store marks the company’s first long-term physical presence in the world, part of a partnership with Société des Grands Magasins (SGM), which hopes the move will attract a younger clientele to its struggling BHV department store. Five of SGM’s regional stores are also set to host Shein shops.
The launch has drawn backlash from French politicians and retailers who accuse Shein of using a low-cost business model that undermines local businesses and accelerates the decline of French high streets.
A petition opposing the opening has gathered more than 100,000 signatures, urging authorities to reconsider allowing a brand accused of exploitative labour and greenwashing practices to operate in central Paris.
“Shein’s low-cost business model gives it an unfair advantage and has eroded French high streets,” said one retail association, echoing concerns that the brand’s rise is reshaping the country’s consumer landscape.
The controversy intensified after French authorities discovered that Shein had been selling childlike sex dolls on its online marketplace.
The discovery prompted a formal investigation into Shein and other platforms over the alleged dissemination of child pornographic materials. Economy minister Roland Lescure warned that Shein could face a market ban in France if similar offences were repeated.
“This is provided for by law,” Lescure said in an interview with BFM TV.
Under French law, the distribution of such content online is punishable by up to seven years in prison and a €100,000 ($115,000) fine.
A Shein spokesperson told The Associated Press that the company “immediately delisted” the dolls once the issue was identified and launched an internal investigation.
A parliamentary fact-finding mission has since summoned Shein executives for questioning.
Right now Shein also faces growing scrutiny in Europe over environmental and consumer protection violations.
In August, Italy’s competition authority (AGCM) imposed a €1 million ($1.16 million) penalty for “greenwashing,” finding that Shein misled consumers about the sustainability of its “evoluSHEIN by design” collection.
AGCM said the company’s sustainability statements were “vague, generic, and misleading,” and that its claims about recyclable materials and circular design were “false or confusing.”
Founded in China in 2012 and now headquartered in Singapore, Shein has grown into one of the world’s largest fast-fashion retailers, shipping to more than 150 countries.