World Stock Watch

Shein’s Bid to Win Over Lawmakers and Investors

As the fast fashion giant prepares for a potential public listing in London, Shein is taking steps to address concerns over product safety and sustainability.

Safety First

In a recent press release, Shein announced that it conducted over 2 million product safety tests last year, using industry-leading labs such as Bureau Veritas and Intertek. The company requires vendors to submit documentation for items like toys, baby products, medical devices, and electronics. This move comes after Shein’s first product safety recall in the U.S. since 2021, which involved over 300 hair dryer brushes that posed an electrocution or shock hazard to consumers.

Going Above and Beyond

What sets Shein apart from other online marketplaces is its decision to conduct product safety tests on items sold by third-party vendors on its platform. Typically, online marketplaces only require sellers to conduct their own testing and provide documentation to support it. Shein’s proactive approach demonstrates its commitment to ensuring the safety of its products.

Sustainability Efforts

In addition to its product safety initiatives, Shein has also established a new nonprofit foundation focused on sustainability. The company has been working to reduce its environmental impact and improve labor practices throughout its supply chain.

A Charm Offensive

Shein’s efforts to showcase its commitment to product safety and sustainability come as the company prepares to go public in the U.K. This charm offensive is reminiscent of its previous campaign in the U.S. before its ultimately unsuccessful IPO bid.

Facing Criticism

However, Shein still faces criticism from lawmakers and regulators. Earlier this month, U.K. lawmakers criticized the company’s attorneys for evading questions about its supply chain and whether it sells products made with cotton from China’s Xinjiang region, which has been linked to forced labor.

A Path Forward

As Shein moves forward with its plans for a public listing, it will need to continue to address concerns over product safety and sustainability. By taking proactive steps to ensure the safety of its products and reduce its environmental impact, Shein can build trust with investors and lawmakers alike.