Ultra-fast fashion online retailer Shein has grown into a global “behemoth” in the years since it was established. In a funding round which took place in 2023, it was valued at around US$66 bn, thereby dwarfing rivals such as Boohoo, H&M and Zara. However, Shein has acquired a bad reputation in the years since it was established, and the company has been shrouded in criticism because of the poor ethical and environmental sustainability standards which it is alleged to employ.
In particular, the company has faced scrutiny over issues relating to copyright infringement, use of hazardous chemicals in the manufacture of its products, labour practices employed along its supply chain, and the environmental impact of its operations. As a consequence, Shein has struggled to raise finance via an initial public offering (IPO).
For example, the company faced opposition from members of the US Congress when it considered launching an IPO on the New York Stock Exchange (NYSE). US politicians have raised concerns about the company’s ties to China and its use of cotton allegedly grown using forced labour, and authorities in the UK have received warnings that the company is associated with “slave labour, sweatshops and trade tricks”.
In order to overcome these concerns, Shein had been trying to solicit the approval of critics and the Financial Conduct Authority (FCA) in the UK by launching various schemes to improve its ethical and environmental sustainability standards. For example, in June 2024 the company launched an online resale platform in Europe called Shein Exchange which can be used to sell and purchase pre-owned Shein products. Also, in July 2024 the company launched a circularity investment programme in Europe and the UK, and as part of this it will invest in the advancement of research and development (R&D) and innovation in circularity for the fashion industry.
Who should buy this report?
- Manufacturers of fibres, textiles, clothing and chemicals
- Textile and clothing machinery manufacturers - spinning, weaving, knitting, sewing and import/export
- Textile and clothing brands and retailers like Adidas, H&M etc.
- Educational institutions like universities, fashion schools etc.
- Business consultancy firms
- Textile and clothing trade associations
- Government trade bodies
Table of Contents
INTRODUCTION
THE RISE OF SHEIN
BUSINESS MODEL
- Ultra-fast fashion
- Marketing
SHEIN’S REPUTATION
- Copyright infringement
- Environmental impact
- Hazardous chemicals
- Labour practices
SHEIN’S EFFORTS TO CORRECT ITS BAD REPUTATION IN A BID TO SECURE AN INITIAL PUBLIC OFFERING (IPO)
