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Shein faces government crackdown in France as minister confirms ongoing investigations
Shein faces government crackdown in France as minister confirms ongoing investigations

Fashion Network

timean hour ago

  • Fashion Network

Shein faces government crackdown in France as minister confirms ongoing investigations

The French government has sent a clear signal to the ultra-fast fashion sector. On July 3, Trade Minister Véronique Louwagie announced that Shein had been fined €40 million for deceptive business practices. Speaking at the annual event hosted by Alliance du Commerce—an organization representing 16,000 stores and 150,000 retail workers in France—Louwagie addressed an audience of retail chain and department store representatives in Paris. During the morning's discussions, concerns were repeatedly raised about the competitive imbalance posed by ultra-fast fashion players who operate outside the regulatory frameworks that European retailers must follow. The fine issued against Shein followed an investigation by the DGCCRF (Directorate-General for Competition, Consumer Affairs and Fraud Control). Louwagie added that 'other investigations are underway,' although she declined to provide further details. Responding to frustration within the retail sector over the perceived disparity in enforcement between domestic and foreign platforms, Louwagie announced new enforcement measures. 'I've asked for stricter controls on foreign platforms—specifically, a threefold increase in product sampling to verify compliance,' she said. 'We're also implementing full-spectrum checks on all elements involved.' She noted that, in coordination with Customs Minister Amélie de Montchalin, a new protocol would ensure systematic information sharing between customs authorities and the DGCCRF regarding incoming parcels. Louwagie emphasized that enforcement is also expanding at the European level. 'At the end of 2024, we began verifying platform compliance with the Digital Services Act,' she explained. 'A specific procedure has been initiated by the European Commission targeting Temu, and a separate investigation is underway concerning Shein. France, along with Germany and Ireland, is challenging multiple practices that violate EU regulations. Shein has 30 days to respond.' Amid calls to replicate the 2021 delisting of the e-commerce site Wish, the minister acknowledged that such action remains an option. 'Wish failed to comply with official injunctions, which led to its removal. While today's platforms often respond to enforcement measures, I'm pushing the European Commission to revise the legal framework so that platforms can still be delisted under certain conditions—even if they cooperate.' Highlighting the scale of the issue, Louwagie noted that 800 million parcels valued under €150 enter France annually, part of a broader influx of 1.5 billion parcels into the country and 4.5 billion across Europe. The stakes, she said, are high—not only in terms of consumer health and safety but also in protecting European businesses from unfair competition. She reiterated the government's support for ending customs exemptions on low-value imports. After months of scrutiny surrounding Shein's business model and its impact on the local economy, the July 3 announcement marks a significant turning point. Whether it paves the way for lasting structural change across the industry remains to be seen.

Shein faces government crackdown in France as minister confirms ongoing investigations
Shein faces government crackdown in France as minister confirms ongoing investigations

Fashion Network

timean hour ago

  • Fashion Network

Shein faces government crackdown in France as minister confirms ongoing investigations

The French government has sent a clear signal to the ultra-fast fashion sector. On July 3, Trade Minister Véronique Louwagie announced that Shein had been fined €40 million for deceptive business practices. Speaking at the annual event hosted by Alliance du Commerce—an organization representing 16,000 stores and 150,000 retail workers in France—Louwagie addressed an audience of retail chain and department store representatives in Paris. During the morning's discussions, concerns were repeatedly raised about the competitive imbalance posed by ultra-fast fashion players who operate outside the regulatory frameworks that European retailers must follow. The fine issued against Shein followed an investigation by the DGCCRF (Directorate-General for Competition, Consumer Affairs and Fraud Control). Louwagie added that 'other investigations are underway,' although she declined to provide further details. Responding to frustration within the retail sector over the perceived disparity in enforcement between domestic and foreign platforms, Louwagie announced new enforcement measures. 'I've asked for stricter controls on foreign platforms—specifically, a threefold increase in product sampling to verify compliance,' she said. 'We're also implementing full-spectrum checks on all elements involved.' She noted that, in coordination with Customs Minister Amélie de Montchalin, a new protocol would ensure systematic information sharing between customs authorities and the DGCCRF regarding incoming parcels. Louwagie emphasized that enforcement is also expanding at the European level. 'At the end of 2024, we began verifying platform compliance with the Digital Services Act,' she explained. 'A specific procedure has been initiated by the European Commission targeting Temu, and a separate investigation is underway concerning Shein. France, along with Germany and Ireland, is challenging multiple practices that violate EU regulations. Shein has 30 days to respond.' Amid calls to replicate the 2021 delisting of the e-commerce site Wish, the minister acknowledged that such action remains an option. 'Wish failed to comply with official injunctions, which led to its removal. While today's platforms often respond to enforcement measures, I'm pushing the European Commission to revise the legal framework so that platforms can still be delisted under certain conditions—even if they cooperate.' Highlighting the scale of the issue, Louwagie noted that 800 million parcels valued under €150 enter France annually, part of a broader influx of 1.5 billion parcels into the country and 4.5 billion across Europe. The stakes, she said, are high—not only in terms of consumer health and safety but also in protecting European businesses from unfair competition. She reiterated the government's support for ending customs exemptions on low-value imports. After months of scrutiny surrounding Shein's business model and its impact on the local economy, the July 3 announcement marks a significant turning point. Whether it paves the way for lasting structural change across the industry remains to be seen.

Rocher to exit Israel and centralize Sabon production in France
Rocher to exit Israel and centralize Sabon production in France

Fashion Network

time2 hours ago

  • Fashion Network

Rocher to exit Israel and centralize Sabon production in France

French beauty leader Groupe Rocher is reorganizing Sabon, one of its key skincare brands, as part of a global repositioning. The group will exit Israel, consolidate manufacturing in France, and expand Sabon's footprint in Asia and beyond. The restructuring follows Groupe Rocher's strategic decision, announced in January, to streamline operations and divest from non-core subsidiaries, including Petit Bateau and Stanhome. Originally founded in Tel Aviv in 1997, Sabon became part of Groupe Rocher in 2018. Best known for its bath and body collections inspired by Dead Sea minerals, the brand is now shifting its growth strategy toward international markets—particularly in Asia. Meanwhile, Groupe Rocher will reinforce production at its industrial facilities in Brittany. As part of the transition, Rocher will sell Sabon's 22 stores in Israel to a local partner. According to local reports, these locations currently employ approximately 90 people. Sabon's production facility in Kiryat Gat, which employs 104 staff, will continue operations during negotiations but is set to cease production by mid-2026. Rocher also plans to close Sabon's Marlog logistics center once its lease expires. The site currently employs 16 people. The group confirmed that it will provide support and transition assistance to all impacted employees. Sabon's Israeli headquarters—home to 60 staff—will gradually transfer its operations to France beginning in late 2025, with the relocation process expected to be completed by mid-2026. Full production will be centralized in Brittany by June 2026. Today, Sabon operates in 10 countries with 193 stores. Between 2019 and 2024, the brand doubled its sales, with online sales now contributing 25% of total revenue. In France, Sabon maintains five boutiques, including four in the Paris region. The brand currently accounts for 6% of Groupe Rocher's overall business. It stands as one of four strategic pillars within the group, alongside Yves Rocher (53%), Arbonne (13%), and Dr. Pierre Ricaud (2.5%). Groupe Rocher reported €2.2 billion in revenue for 2024, reflecting a 2.4% increase over the previous year.

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