Fast fashion giant Shein has been shipping packages of mass-produced clothing and other low-cost goods across the globe for years. It has frequently been criticized for the low quality of its goods, including some potentially harmful products, not to mention its likely human rights abuses and its impact on the environment.
Nevertheless, it continues to expand — and now it is working its way toward its initial public offering in Hong Kong, Reuters reported.
What's happening?
Hong Kong was not Shein's first choice, Reuters revealed. The company first hoped to be listed on the American stock market in New York, but was shot down.
It next tried for an initial public offering in London, an effort which continued until earlier this year. However, although it received the approval of London regulators, it failed to win permission from the China Securities Regulatory Commission. While the decision was not publicly explained, it is likely that it had to do with the potential embarrassment of Shein's links to human rights abuses in its supplier factories.
While the company hoped to establish itself as a global organization that was merely based in China, it has now had to set its sights lower as a Chinese company that does international business. It aims to be listed on the Hong Kong stock market.
Why does it matter if Shein goes public?
It's a good sign that Shein can't get the approval it wants to do business overseas. The company generates a huge amount of waste in the form of cheap products that break easily, and its fast fashion selections encourage buyers to spend an unnecessary amount of money on clothing. Many of its products come with safety concerns, and the majority of them are bad for the environment. The fewer governments buy into Shein's business model, the better off we are.
However, the company is still expanding, as the new listing demonstrates.
What's being done about Shein's expansion?
Groups worldwide have their eye on the situation, as a planned legal challenge to the London listing demonstrated. However, the best way to stop Shein is to deny it business. Instead of supporting fast fashion, look for more sustainable and high-quality options that will give you value for your money.
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