What would be one of the biggest in the history of the London Stock Exchange, online fashion brand Shein is set for a $64 billion stock market flotation. The Singaporean company could file for an initial public offering as soon as this week, said Bloomberg.Â
Business model Launched in 2008 in Nanjing, China, Shein has seen its popularity soar, becoming the largest clothing retailer in the world in 2022 when it reported $24 billion in revenue. The business model revolves around "low-cost, throwaway items," said The Independent, encouraging an attitude of "wear them once, then buy something else." While this may seem "wild" to some, it's a "modus operandi that is clearly working."Â
Shein should be understood as a "tech company, not a fashion brand," said fair-fashion campaigner Venetia La Manna. It uses "highly advanced" search engine optimization to "quickly react to trends" and churn clothes out. It has also pioneered so-called "haul" videos on platforms such as TikTok and Instagram, where content creators and brand influencers buy masses of clothing and try them on for their followers.Â
Fast fashion vs. sustainability What makes Shein's success remarkable is that it has come in the face of intense scrutiny over its working conditions, human rights record and carbon footprint and during a trend toward sustainable fashion. Last month, Shein announced its "first-ever entirely deadstock collection" featuring new pieces crafted from leftover fabrics. This is the "start of a new sustainable era for the label's sourcing practices," said Bustle, part of a drive to "cut their carbon footprint by at least 25% by 2030."Â
The problem is that "not everyone can afford to shop sustainably," said Drew Afualo, a TikTok influencer who has faced online backlash for partnering with Shein, adding that "sustainable fashion is a privilege." For many, the cost and speed offered by the brand outweigh any ethical or moral concerns. |