Chinese-founded fast-fashion giant Shein is preparing to list on the Hong Kong stock exchange next month, in a long-awaited move that could value the company at around US$27 billion.
Shein has grown rapidly by combining very low prices, a huge range of products and aggressive social media marketing.
But as the company prepares for its stock market debut, it is also facing growing scrutiny over labour practices, environmental impact, intellectual property and regulatory compliance.
Shein`s biggest strength is the speed at which it can design, produce and sell new products.
Its online platform offers a huge range of clothing and accessories, with some items priced at just a few dollars.
The company benefits from China`s large textile manufacturing industry and its highly developed e-commerce logistics network, even though it moved its headquarters to Singapore between 2021 and 2022.
Shein also closely tracks customer searches and social media trends to identify products likely to become popular.
The company has repeatedly faced allegations of copying designs from other brands. In July, it disclosed that it was facing more than 40 lawsuits related to intellectual property.
TikTok played a major role in Shein`s international expansion, particularly during the pandemic.
The company worked with smaller influencers and ordinary social media users, often offering free products or payments in return for promotion. The trend of users posting videos showing their large Shein purchases, known as "Shein hauls", helped the brand gain millions of customers.
The strategy has also attracted criticism.
A sponsored factory visit involving Western influencers in 2023 faced backlash over claims that it failed to address alleged labour problems properly.
Shein is now also facing stronger competition from another low-cost online retailer, Temu.
Shein has faced allegations that workers in its supply chain are underpaid and work excessive hours.
Critics have also questioned how transparent the company is about its manufacturing network.
The European Union added Shein to its list of major digital platforms subject to stricter safety requirements in 2024.
In February this year, the European Commission opened an investigation into whether Shein complies with the Digital Services Act.
The investigation includes its handling of illegal products, concerns over potentially addictive platform design and the transparency of its recommendation systems.
Shein`s ultra-low prices and rapid production model have also raised concerns about overconsumption and its environmental impact.
Campaign group Stand Earth ranked Shein among the worst-performing major fashion brands for environmental practices in a ranking of more than 40 companies last year.
France is also preparing to introduce per-item charges on Shein, Temu and other platforms classified as promoting "ultra-fast fashion".
The removal of US tax exemptions for low-value individual shipments has created another challenge for companies that depend heavily on sending large numbers of cheap parcels directly to consumers.
Shein has defended its business model, saying it carries out regular third-party audits to promote fair wages.
The company also argues that its on-demand production system reduces overproduction and waste.
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