China fast-fashion e-tailer Shein’s UK expansion plan

Chinese e-commerce giant Shein is planning to open its first British warehouse as it prepares for a 50 billion British pounds ($64 billion) listing on the London Stock Exchange. This comes after news that the controversial mainland Chinese e-tailer has brought on former EU budget commissioner Gunther Oettinger as a consultant to assist on its potentially tricky path towards the London IPO.

As it navigates regulatory scrutiny in the UK, the company is reportedly searching for a large site in England’s “golden logistics triangle” – located in the Midlands.

Locations such as Castle Donington, Coventry, Daventry, and Derby are under consideration. Shein is targeting buildings between 27,871 sqm and 37,161 sqm, though it may consider warehouses as large as 55,741 sqm.

However, the final decision on the warehouse will depend on the firm’s London IPO and negotiations with its current UK logistics provider, Super Smart Service.

Despite exploring options, Shein has faced criticism for exploiting a legal tax loophole on overseas shipments. The company had recently stated it had no immediate plans to acquire warehouse space in the UK.

Established in 2008, Shein rapidly grew to become the largest fashion retailer globally by 2022. With a valuation of $100 billion, the Singapore-based Chinese e-tailer already holds about one-fifth of the global fast-fashion market, surpassing the combined value of fast-fashion pioneers H&M and Zara, as Jing Daily reported.

Sustainability advocates and regulatory organizations have expressed concerns about Shein’s operations due to their major environmental and ethical repercussions.

Shein’s controversial success story is further demonstrated by the fact that it outperforms industry heavyweights like Nike, Adidas, and Zara, ranking as the most-Googled apparel brand in 113 countries.