Online fast fashion giant Shein is making headlines once again, this time with reports suggesting the company is gearing up for a potential London share listing that could value the company at a staggering $66 billion.
The China-based company, now headquartered in Singapore, has faced regulatory hurdles and intense scrutiny in the US, prompting the move to explore a listing in the UK. While a Shein spokesperson declined to comment on the reports, a confidential filing with the UK’s Financial Conduct Authority could pave the way for a major London stock market share sale.
Shein’s rapid growth since its founding in 2008 has not been without controversy, with the company facing allegations of unethical business practices, including forced labor claims. Last year, US lawmakers called for an investigation into Shein over allegations of Uyghur forced labor in the production of its clothing.
Despite these challenges, Shein has become one of the biggest fashion retailers in the world, thanks to its strategy of offering a wide range of affordable clothing and leveraging social media platforms like Instagram and TikTok for marketing. The company’s ability to quickly produce new items with thousands of third-party suppliers and contract manufacturers near its headquarters in Guangzhou has set it apart in the fast fashion industry.
As speculation grows about Shein’s potential London listing, the company continues to face scrutiny over its labor practices. A recent report by Swiss advocacy group Public Eye found that workers for some of Shein’s suppliers are still working excessive hours, despite the company’s promises to improve conditions.
Shein told the BBC it is “working hard” to address the issues raised in the report and has made “significant progress on enhancing conditions.” With its eye on a London listing, Shein will need to navigate these challenges as it seeks to solidify its position as a major player in the global fashion market.
