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The Singaporean-headquartered conglomerate was founded in China almost 16 years ago, soaring in popularity among Gen Z in 2022 and overthrowing Spanish company Zara as the world’s largest apparel retailer.
At its peak, the e-commerce company was valued at $US100 billion.
Last month, the retailer’s local operations generated almost $980 million in revenue and more than $10 million in profits — less than three years after its foray into the Australian market.
Research by Roy Morgan indicates more than a quarter of a million Australians shop with Shein monthly as it capitalises on the growing number of young families reining in discretionary spending amid the rising cost of living.
But the retailer has come under intense scrutiny over perceptions of poor garment quality, as well as its skyrocketing carbon emissions and allegations of unethical labour practices across its production warehouses in China.
Closing the Loop on Product Waste Project business development manager and Curtin University lecturer Dr Anne Farren said Shein’s arrival was “bad news” for Australia and the environment.
“Giving brands free rein to sell fashion products destined for landfill after limited use spreads entirely the wrong message and does not support local efforts to improve sustainability and circular practice in the local supply chain,” Farren said.
Shein is believed to be on the verge of going public, with the conglomerate expected to launch its Initial Public Offering in London by the year’s end after abandoning a float in the United States.
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