French retail sector unites against Shein

Major French trade federations representing sectors from mass market retail to clothing and toys are suing Shein for “unfair competition”. The Asian e-commerce giant, already under government scrutiny, described the move as a “boycott attempt”.

Several sector organisations stated in a press release that Shein’s model “relies on non-compliance with regulations applicable to all players established in France”.

Alongside the Conseil du commerce de France (CDCF), organisations joining the initiative include those representing mass distribution (FCD), clothing and textile industries (Alliance du commerce, FFPAPF, Ufimh, UIT, Fédération de la maille, de la lingerie et du balnéaire), jewellery (BOCI, UBH), toys (FCJPE), franchising (FFF) and online sales (Fevad).

Through this action of “unprecedented scale”, joined by around 100 retailers including Coopérative U, Promod, Monoprix, Grain de Malice (clothing) and Besson (footwear), federations and companies “affirm their determination to restore fair competition based on respect for the law”. “They also demand recognition of the economic damage suffered” by retailers established in France and “the granting of damages proportionate to these losses”. “This accusation is unfounded,” a Shein spokesperson responded. “It is regrettable that these players prioritise judicial confrontation rather than constructive dialogue.”

Closure?

“This initiative is more akin to a boycott attempt than a serious legal step,” he added. The case is being heard at the Aix-en-Provence commercial court. Shein’s Irish subsidiaries have already been summoned there for “unfair competition” regarding the judicial liquidation of local menswear brand Olly Gan. This was specified during a videoconference by Cédric Dubucq, the lawyer representing the federations and companies involved.

The latter “will intervene voluntarily” during a procedural hearing scheduled for January 12. This hearing will set the date for the examination of the case's merits. Dubucq estimated that damages to the injured companies are currently being evaluated and could reach “several hundred million or even several billion euros”. He also mentioned the possibility for the public prosecutor to request the payment of a “civil fine”, a measure newly permitted by law. Trade minister Serge Papin stated in a press release that this collective action is “very good news”. He added: “It proves that the sector will no longer let itself be pushed around.” “The French economy must resist models that jeopardise our values and our security,” Medef president Patrick Martin added on X.

First step

Regarding other e-commerce platforms, Alliance du commerce general director Yohann Petiot explained: “The message we are sending today is that impunity is over.” He views the summons against Shein as a “first step”.

Shein promised to “take all necessary measures to defend” its interests. This united front from the French retail sector follows several years of “excesses” by Shein and other non-European platforms. Alliance du commerce president Bernard Cherqui reminded the press of this, invoking “a systemic threat of the disappearance of commerce in France”. “This brand sells products at very low cost but above all non-compliant with our regulations,” Coopérative U CEO Dominique Schelcher commented on TF1. “If a store sold eight out of ten non-compliant products, it would have been closed a long time ago.” Shein has already received three fines in France this year totalling 191 million euros, notably for false promotions and misleading information.

The ultra-fast fashion platform is facing other legal proceedings initiated by the government. These follow revelations regarding the sale of sex dolls resembling young girls and category A weapons. The summary hearing regarding its suspension in France will be held on November 26. On the same day, the platform, originally from China but now based in Singapore, is summoned before the National Assembly’s Sustainable Development and Regional Planning Commission. It has not confirmed its attendance, having declined a similar appointment on Tuesday.