Fast fashion retailer Shein announced plans to invest €250 million ($271 million) over five years in the UK and Europe to address criticism of its business model, which relies on flying cheap clothing from Chinese factories to shoppers worldwide.
Shein, considering a London listing, primarily sources apparel from 5,400 suppliers in Guangzhou, China, with a small but growing share from Turkey. European textile associations accuse Shein of undermining local industries by offering garments at prices that domestic factories cannot match, partly due to a tax break on parcels under €150 entering the EU.
The EU is debating abolishing this limit. Shein earmarked €50 million for potential investments in R&D and pilot production facilities in Europe or the UK. Shein also launched a €200 million “circularity fund” to support start-ups in textile recycling, aiming to drive industry-wide adoption of sustainable solutions.