Shein is facing a difficult time

By: Trademagazin Date: 2024. 07. 02. 09:47

Shein, one of the leading players in the fast fashion online fashion trade, faces various challenges when planning its IPO. The company, originally founded in China and later moved to Singapore, has been targeting international markets for a long time, but has found itself in the crossfire of many social and political criticisms.

One of the biggest concerns surrounding the company is the often criticized working conditions in the supply chain. Shein works with more than 5,400 suppliers that typically operate in China and in many cases provide objectionable working conditions for their workers. In addition, the company often abuses preferential tariffs, with which it artificially keeps the prices of products low, thereby distorting market competition.

Shein’s IPO plans are further complicated by political opposition. In the United States of America, where Shein’s app became one of the most downloaded apps in 2021 ahead of Amazon’s, a bipartisan series of attacks was launched against the company under the leadership of Republican Senator Mark Rubio. The accusations include abuse of customs regulations, criticism of working conditions and the company’s Chinese background. As a result, Shein’s IPO in New York did not materialize, and the situation in London remains uncertain, although the company’s leaders have already consulted with representatives of the British Conservative government and the opposition Labor Party.