Shein to invest in UK and Europe ahead of potential IPO
According to reports, fast fashion retailer Shein said it would invest €250m ($271m) over five years in the UK and Europe as the company battles criticism of its model based around flying cheap clothes and accessories from factories in China direct to shoppers worldwide.
Source: edition.cnn.com
Shein, which is preparing for a possible London listing, already sources some clothes from factories in Turkey, although the vast majority of its products are made by around 5,400 suppliers mainly in Guangzhou, China.
Textile associations and politicians in Europe have accused Shein of eroding local industries by flooding the market with garments at prices domestic factories and retailers cannot compete with, partly thanks to its use of a tax break for parcels worth less than €150 entering the European Union. A similar tax break in the UK is for parcels worth less than £135 ($173).
The EU is discussing abolishing the limit as part of a customs reform project proposed by the Commission in May 2023.
Shein said on Tuesday, 9 July 2024, it has earmarked €50m for "potential investments in R&D or pilot Shein production facilities in Europe or the UK," as well as initiatives to help brands and designers from the region reach a bigger market through Shein's marketplace.
Shein reportedly recorded sales of about $45bn in 2023 and was valued at $66bn in a fundraising round last year.
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