Shein points arrows at Europe
Chinese fashion retailer Shein is looking to expand in Europe. At the same time, the company’s value has fallen around 30 percent. Shein has been under scrutiny about its labor conditions and environmental impact.
Shein, founded in 2008 in China, is known for offering fashion at very low prices. The company grew incredibly fast, with sales going from 50 billion dollars in 2012 to 10,000 million in 2020. In that year, Shein grew by a staggering 250 percent.
Aiming for Europe
The Chinese retailer ships across 220 countries worldwide, with most customers in India and the United States. Now, Shein is pointing its arrows at Europe. Shein recently opened European pop-up stores in Madrid and Barcelona for click-and-collect. The company has set up temporary shops in London and Paris before.
Shein appointed a European director of business development.
Moreover, the company appointed Jacobo García Miña as European director of business development, Moda.es reported. Garcia is based in Dublin and formerly worked for H&M and Zara as well as Burberry and Salesforce. The director is meant to build relationships with European companies and improve Shein’s image in Europe.
30% valuation drop
Shein’s concerns with its image are not unjustified. After its fast-paced growth in the past few years, the third most valuable startup in the world is facing a 30 percent valuation drop. In the run-up to an IPO, investors are now looking to sell their shares. More companies in the tech and ecommerce industry have seen lower valuations due to global economic uncertainty.
Shein under criticism
In addition, Shein has been involved in numerous controversies concerning copyright, labor conditions and environmental impact. Shein has also been criticized for a lack of transparency in these areas.
Shein has been involved in numerous controversies.
Most recently, TikTok videos on Shein went viral showing brand labels with the word ‘help’ on them. According to Shein, the videos contain ‘misleading and false information’, saying the retailer takes supply chain issues very seriously.