Fast fashion retailer SHEIN announced it would invest € 250 million (US $ 271 million) over five years in the UK and Europe as it faces criticism for its model of flying cheap clothes and accessories from factories in China directly to shoppers worldwide.
SHEIN, which is considering a possible London listing, already sources some clothing from factories in Turkey, though the majority of its products come from around 5,400 suppliers, mainly in Guangzhou, China.
Textile associations and politicians in Europe have accused SHEIN of undermining local industries by flooding the market with garments at prices that domestic factories and retailers cannot match. This advantage is partly due to a tax break for parcels worth less than € 150 entering the European Union, with a similar tax break in the UK for parcels worth less than £ 135 (US $ 173).
The EU is currently discussing abolishing this limit as part of a customs reform project proposed by the Commission in May 2023.
SHEIN recently announced that it has allocated € 50 million 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 larger market through SHEIN’s marketplace.