Shein to launch resale platform in Europe ahead of potential London IPO

Shein has announced plans to expand its resale platform Shein Exchange to Europe and the United Kingdom and Europe.

The platform, which allows customers to buy and sell previously owned Shein products, has been active in the US for about two years. It will be made available in France first, followed by launches in the UK and Germany in subsequent phases.

This move comes as the Chinese-founded Shein is reportedly preparing to file for a potential initial public offering (IPO) on the London Stock Exchange. According to a Sky News report, the company is set to submit a prospectus to Britain's Financial Conduct Authority for approval, possibly as soon as this week.

Shein cited studies showing that 50 per cent of respondents in the UK, France, Germany, and Brazil are driven by sustainability concerns when buying second-hand clothes online. The company reported that over 4.2 million new users joined the Shein Exchange platform in the US in 2023, with over 115,000 pre-owned items listed for sale by more than 95,000 sellers.

As Shein considers a London listing, the Labour Party, widely expected to form the next government in Britain, confirmed that it has met with the company ahead of the potential IPO. A Labour spokesperson stated that the party has met with various companies, including Shein, that are looking to invest or list in Britain, as raising investment, productivity, and growth is one of Labour's missions.

However, some senior British lawmakers have raised concerns about Shein's suitability for a London listing, calling for greater scrutiny of its supply chain and labour practices. Labour emphasised the need for the "highest regulatory standards and business practices" from any company operating in the UK, adding that the best way to ensure this is to have more companies operating from and regulated by UK law.

Shein has declined to comment on the meetings but previously stated that it is "investing millions of pounds in strengthening governance and compliance across our supply chain."

The company's potential London listing comes after facing regulatory hurdles and pushback from US lawmakers regarding a planned New York IPO.

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