Shein's Big Investment: A Game Changer for UK and Europe

Fast fashion retailer Shein plans to invest 250 million euros in the UK and Europe over the next five years. The investment aims to boost local production, research and development, and support for regional designers. The company also announced a new circularity fund to promote textile recycling technologies.

Fast fashion retailer Shein announced plans to invest 250 million euros ($271 million) over five years in the UK and Europe in an effort to counter criticism of its business model. The company, known for its affordable clothing sourced primarily from China, faces scrutiny for eroding local industries.

As Shein prepares for a potential London listing, it already sources some products from Turkey. However, most of its supply comes from approximately 5,400 suppliers in Guangzhou, China. European textile associations and politicians have accused Shein of creating unfair competition for local manufacturers and retailers by exploiting tax breaks for parcels under 150 euros, a policy the EU is considering abolishing.

Shein has set aside 50 million euros for R&D and potential production facilities in Europe or the UK, aiming to support local brands and designers. The retailer, which reportedly generated $45 billion in sales in 2023, is also launching a 200 million euro circularity fund to encourage textile recycling technologies. Shein is inviting businesses, financial institutions, and sovereign wealth funds to co-invest in this initiative.

(With inputs from agencies.)