No sooner bought than sold. At the beginning of June, the e-commerce giant Shein unveiled its online platform dedicated to second-hand goods to the French. Called “Shein Exchange”, this new feature based on customers’ purchase history allows them to buy and sell the brand’s second-hand products in just a few clicks. After a launch in the United States in 2023, where more than 4 million users have registered, France becomes the first European country to have access to the platform, which will then be opened to the United Kingdom and Germany.
A choice motivated by the strong expectations of French consumers concerned about their environmental impact, according to the company. “We want to offer our customers ways to easily contribute to the circular economy”assures Caitrin Watson, Shein’s director of sustainable development, in a press release. An argument that is hard to convince. “With Exchange, you only need one click to resell an item, it’s formidable. In the end, this pushes even more consumption”explains Catherine Dauriac, president of Fashion Revolution France.
Factories at the gates of Europe
By focusing on the second-hand market, Shein is also regaining control over the entire consumption cycle of its customers, who were previously used to selling their items on dedicated applications, such as Vinted. More than 22 million Shein products are now listed on the platform. But while the stakes are mainly commercial, they are also reputational. Since the adoption by French MPs last March of the “anti-fast-fashion” law, the brand has been multiplying its announcements.
Recently, Shein announced its intention to relocate part of its production to Türkiye. “We are strengthening the development of our supplier network in Türkiye in order to shorten the distance to our consumers”the company explained to us last April. A way to reassure customers and potential investors, in several respects. The goal, according to the brand, is to reduce the use of air freight, on which it increasingly relies to shorten its delivery times.
For Shein, it is also about aligning itself with the practices of its competitors. “Consumers are already used to buying products made in Türkiye”, underlines Laëtitia Lamari, e-commerce analyst, to Novethic. Many brands like Zara or H&M obtain their supplies from Turkish factories, the fashion industry representing 40% of the country’s industrial production. Establishing itself at the gates of Europe would also ease the geopolitical tensions which tend to slow down its rise in the West.
A turbulent IPO
With this in mind, the Chinese giant filed a request for proposal in June “confidential documents with the UK Financial Conduct Authority in preparation for a possible initial public offering (IPO)”reports the Financial TimesThe platform is reportedly aiming for a valuation of 50 billion pounds, or more than 58 billion euros. But the deal remains uncertain. Chinese regulators, who would rather support an IPO in Hong Kong, have not yet given the green light. Moreover, this is not the company’s first attempt.
Before turning to London, Shein had initially filed for an IPO in the United States. Submitted at the end of 2023, it has however still not been successful in the face of strong opposition from American senators, worried about the social risks weighing on the company’s supply chain and potential Chinese interference. As for the United Kingdom, the City and the Labor Party currently seem to be in favor of listing Shein on the British market.
“London has every interest in attracting a big player like Shein as its marketplace is lagging behind Amsterdam or Frankfurt following Brexit”, estimates Jean-Marc Megnin, retail analyst, interviewed by Novethic. But here too, the dispute is growing. While the British Fashion Council said “concerned” As for the impacts on the ready-to-wear industry, several human rights NGOs, including Labor Behind the Label and Stop Uyghur Genocide, have called on the government to put a stop to the operation. The debate is expected to continue as the country prepares to vote in the general elections on July 4.
