As Shein, the online fast-fashion retailer, intensifies its pre-IPO activities in Britain, it is encountering growing opposition from Europe's retail industry and lawmakers. During the European Union elections, textile, clothing, leather goods, and footwear manufacturers across 27 countries urged future EU policymakers to protect 1.5 million industry jobs from the influx of low-cost imports.
Industrial policy has become a significant election issue, with apparel manufacturers, retailers, and e-commerce companies advocating for measures against cheap Chinese imports. This rhetoric echoes the concerns of EU officials about Chinese overproduction in the electric vehicle sector.
Europe's textiles, footwear, and leather industries, which include fast-fashion leaders like Zara and H&M, along with major luxury brands, generate over 200 billion euros ($220 billion) annually. These industries are predominantly composed of small and medium enterprises, accounting for 99% of the sector, and are highly vulnerable to global competition, according to industry groups.
Poland's e-commerce association reported that Chinese state subsidies give online platforms like Shein, which offers $5 T-shirts, $15 jeans, and $1 earrings, an unfair advantage over European competitors.
Shein denied these claims, with a spokesperson stating, "There is no truth to the allegation that Chinese state subsidies help support SHEIN's business and its expansion worldwide." While Shein primarily manufactures its products in southern China, the company is expanding its supplier network to Brazil and Turkey. "We expect our Turkish supply chain partners to increasingly support us in serving the European market," the spokesperson added.
As Shein continues to expand its footprint in Europe, the debate over fair competition and the protection of local industries is likely to escalate, capturing the attention of both policymakers and the public.