The resolution by Asian e-commerce giant Shein to establish a presence within a celebrated Parisian department store has stirred up controversy in the fashion epicenter. Certain French fashion and beauty labels voiced their dismay and indicated they would withdraw their products from the struggling establishment.
Resentment has been escalating since Shein revealed the previous week that it intended to launch its inaugural permanent brick-and-mortar store in November at BHV Marais, an emblematic structure that has been situated across from Paris City Hall since 1856.
This action incited certain French labels to declare their departure from BHV Marais, but the department store had previously experienced a decline in tenants because of delayed payments. Aime cosmetics line co-founder Mathilde Lacombe, whose brand was among those deciding to leave following Shein’s announcement, communicated that she was “deeply shocked” by the agreement.
BHV trade unions also spearheaded calls on Friday for industrial action to object to Shein’s arrival, cautioning about a “short-term danger to the department store’s existence.”
Critics are concerned that Shein — whose rapid ascent has been a setback for conventional retail fashion firms — will additionally harm stores in France that have been compelled to dismiss employees or cease operations.
Established in China and presently headquartered in Singapore, the fast-fashion behemoth markets an extensive array of items at highly competitive prices. Nevertheless, it has additionally encountered global examination regarding its business model’s consequence on the environment and labor standards at its textile manufacturing plants.
“Facing the Paris Mayor’s office, they will inaugurate a new Shein Megastore that — subsequent to having devastated numerous French brands — could saturate our market even more extensively with throwaway goods,” stated the trade association for French ready-to-wear women’s apparel enterprises, the FFPAPF.
The European Commission is probing Shein concerning hazards associated with illicit merchandise, while EU legislators last month ratified legislation intended to restrain fast fashion’s ecological footprint. “Shein’s advent contradicts our principles,” former French environmental transition minister Christophe Béchu informed AFP.
’Honouring’ the fashion capital
Shein has portrayed its introduction into physical retail in France as a tribute to the nation and its pivotal role in fashion.
“In selecting France as the location to test physical retail, we are recognizing its stature as a fundamental fashion capital and embracing its essence of innovation and quality,” stated Donald Tang, Shein’s executive chairman. “It is suitable that this endeavor commences in Paris, at BHV — the origin of contemporary retail,” he included.
The business also intends to launch outlets at Galeries Lafayette department stores in the cities of Dijon, Reims, Grenoble, Angers, and Limoges. BHV Marais and the five Galeries Lafayette locations are managed by retail property consortium Societe des Grands Magasins (SGM).
SGM is seeking to acquire the BHV Marais edifice from Galeries Lafayette, but the state-run bank it anticipated would assist in funding the acquisition resolved to withdraw due to the Shein alliance. “The Bank of Territories became aware of this collaboration through the media, without any preliminary communication, resulting in a loss of confidence between the two entities,” it conveyed in a statement.
SGM criticized “political influence” underlying the action but affirmed it could still execute its purchase of the building.
Galeries Lafayette also communicated its resistance to Shein boutiques debuting in the five locales bearing its name, although it no longer oversees those locations. “Galeries Lafayette articulates its profound disagreement with this resolution in consideration of the positioning and behaviors of this ultra-fast-fashion brand that are in contradiction to its own offerings and ideals,” it conveyed in a statement subsequent to the announcement.
Exodus
SGM had already experienced a number of luxury brands abandoning BHV Marais over payment delays antecedent to Shein’s arrival. SGM conveyed that the multi-million-euro payment postponements are provisional, citing the implementation of a novel automated accounting framework, and refuted any cash flow concerns, noting BHV reverted to profitability in 2024. Nevertheless, the repercussions are evident in vacant shelves and sparse aisles at BHV, which directly employs 750 individuals, particularly in DIY and stationery sectors.
French underwear company Le Slip Français stated it had to initiate legal proceedings against SGM regarding the delays in transferring revenues from sales executed at BHV. “It’s an associate in whom we no longer have trust,” Slip Francais founder Guillaume Gibault informed AFP. The Shein agreement “only verified that we had made the correct decision” to exit BHV Marais, he appended.
