The Singapore-based company sells clothing to over 150 countries around the world
A successful e-commerce model is based on extremely affordable prices: $5 for T-shirts and $10 for dresses.
Most products are made in China
In June, it filed for an initial public offering on thailand telephone number the London Stock Exchange.
Why is this important for the online market?
The Shein case shows that responsible supply chain management must be combined with the rapid development of e-commerce. This means that for online stores:
the need to provide transparent information about the origin of products
the importance of developing ethical supply chains
the need to balance low prices and fair working conditions
Double adjustment
Shein must obtain approval from Chinese authorities and the UK regulator before it can go public. Sources close to the process say Chinese authorities will make their decision based on advice from the UK FCA.
What this means for the future of e-commerce
This case shows that the business policies of large online retailers will come under increasing scrutiny, particularly in the following sectors:
supply chain transparency
suppliers' working conditions
sustainability of fast fashion business models
For smaller e-commerce companies, this can provide an opportunity to compete with the big players by emphasizing ethical and transparent business practices.