H & M Hennes & Mauritz AB (publ)France's fee targets low-cost fast fashion from Shein/Temu, not H&M, which offers fewer items, potentially giving H&M a competitive advantage.
France on Tuesday began implementing a fee system targeting extremely cheap fast fashion, in a bid to curb the surge in low-cost clothing sold on Chinese-origin online shopping sites such as SHEIN and Temu. The measure is part of the "fast fashion law" passed in June to address environmental damage caused by overproduction, imposing fees such as 0.25 euros (about $0.30) on boxer shorts and socks, and 12 euros (about $14) on coats. The fee is capped at 50% of the product's pre-tax sale price and is calculated based on the number of items offered by a brand, their prices, and ease of repair, with plans to raise it further from 2030. France is the first among European Union countries to impose penalties on retailers based on the number of products they offer online. According to SHEIN's prospectus, as of March 31 this year, it offered over 2 million items, with about 4,700 new apparel items added daily. According to authorities, European retailers such as Zara, owned by Inditex, and H&M, which offer fewer items on their sites, are not expected to be subject to the measure. SHEIN and Temu did not respond to requests for comment. China's Ministry of Commerce has expressed that the law is discriminatory and a trade barrier, potentially violating World Trade Organization principles.
H & M Hennes & Mauritz AB (publ)France's fee targets low-cost fast fashion from Shein/Temu, not H&M, which offers fewer items, potentially giving H&M a competitive advantage.
Industria de Diseno Textil SAZara, owned by Inditex, is not expected to be subject to the fee, as it offers fewer items, potentially benefiting from reduced competition.
PDD Holdings Inc.France imposes fees on Shein's products, directly increasing costs and potentially reducing sales.