Shein's initial public offering: the beautiful coin in the waste bin

Shein, the Chinese online fashion retailer, is set to list its shares on the Hong Kong stock exchange, marking what could be the largest initial public offering (IPO) of the year. The move comes after failed attempts to go public in London and New York. According to reports cited by Reuters, the company aims to raise up to €1.7 billion through this listing. This follows a period of rapid growth that has recently slowed, with analysts and investors currently valuing the firm at around €26.5 billion, down significantly from nearly €100 billion four years ago. Shein’s net profit dropped sharply, moving into negative territory early this year after previously standing at €2.1 billion in 2025. The company, based in Singapore but primarily manufacturing in China, has long been known for its ultra-fast fashion model. It leverages data mining techniques to identify trends on social media and rapidly produces new items, often within days. This approach has helped shape the concepts of Ultra-Fast Fashion and Real-Time Fashion. However, such speed has come at a cost, both financially and environmentally. The company's aggressive production cycle has led to concerns over sustainability and resource consumption. In recent months, key markets such as the European Union and the United States have begun to take measures against the influx of goods from China. Since 2025, the U.S. has imposed tariffs on packages originating from China. Meanwhile, the EU has introduced a packaging fee of €3 per package group, increasing the cost of clothing items like pants and blouses. Additionally, the European Commission has been investigating whether Shein’s business practices violate the Digital Services Act (DSA). These regulatory actions have contributed to a decline in Shein’s market valuation. Campaigners from Greenpeace argue that these developments signal a turning point for the company. Moritz Jäger-Roschko, a campaigner for circular economy issues, states that the sharp drop in Shein’s value reflects the unsustainable nature of its business model. He emphasizes that Shein exemplifies the problems associated with fast fashion, including excessive resource use, textile waste, and high carbon emissions. “The measures taken by the EU are working,” he says, pointing to the growing pressure on companies like Shein to change their ways. Meanwhile, German secondhand clothing collectors have raised alarms over the surge in discarded garments. Between 2018 and 2023, the volume of textiles collected increased by more than 50,000 tons, reaching approximately 1.3 million tons. This rise is attributed to higher textile consumption and shorter product lifespans. According to the recycling association bvse, the proportion of reused clothing has fallen from 62% to 44%, while thermal recovery, burning clothes, has risen from 12% to 21%. This means that more than one in five used garments ends up being incinerated. In response to these challenges, Greenpeace advocates for stricter regulations against fast fashion, drawing inspiration from France’s anti-fast fashion law. The French legislation, which takes effect in January, threatens fines for companies that produce large volumes of products quickly without encouraging repairs or sustainable practices. It also restricts advertising tactics that promote excessive consumption. Although the law does not explicitly name Chinese platforms like Shein, Temu, or Alibaba, they were widely discussed during the debates surrounding the regulation. In Germany, similar legislative efforts remain in the planning stage. While there is currently no comprehensive anti-fast fashion law, the Federal Environment Ministry is developing legislation aimed at expanding producer responsibility. This suggests that the pressure on companies like Shein is likely to intensify in the coming years. As the IPO nears, the company faces mounting scrutiny from regulators, environmental groups, and consumers who are increasingly aware of the consequences of its business model.