Published : 06 Sep 2026, 03:26 AM
Updated : 16 Sep 2026, 11:47 AM
For a time, Shein appeared destined for global dominance, pioneering ultra-fast fashion with new products uploaded within hours and entire outfits sold for under £5.
But The Independent reports that the China-founded retailer’s rapid growth is now showing signs of strain. In the year to March, Shein had more than 273 million active customers who placed over 1 billion orders.
Shein shares fell 6 percent on Tuesday, a sharp reversal for a company once valued at $100 billion. After going public on the Hong Kong Stock Exchange, its valuation has dropped to about a quarter of that figure.
The Independent says the weak performance follows failed attempts by the company to list in New York and London. US regulators raised concerns over forced labour, while a planned £50 billion UK flotation faced scrutiny over Shein’s supply chain.
The setbacks have raised questions about whether fashion can sustain Shein’s accelerated business model as governments and consumers increasingly confront the environmental and ethical costs of cheap, high-speed retail.
The Independent notes that Shein remains one of the world’s biggest listed fashion companies, with a valuation comparable to H&M.
But its slowdown raises questions over whether fast fashion is losing its grip and consumers are moving towards more sustainable shopping.
Founded in China in 2008 by Chris Xu, Shein began as an online wedding-dress seller before becoming a mainstream retailer. Its business surged during the pandemic, with revenue rising from $2 billion in 2018 to $15.7 billion in 2021.
Shein built its success around a “test and repeat” model, keeping only 6 percent of its inventory in stock for more than 90 days, according to The Independent.
The model prioritised speed but attracted criticism over social and environmental practices, as well as allegations of copying smaller brands.
In 2020, Shein also apologised and removed swastika necklaces from its website after facing criticism.
More recently, Shein lost a copyright case against rival Temu after accusing the platform of “industrial-scale” violations involving vendors using images from Shein’s website. The company has also been hit by the removal of tariff exemptions for low-value goods in the US and Europe, forcing it to raise prices.
The Independent reports that Shein posted a $99 million loss in the first three months of this year, compared with a $395 million profit during the same period last year.
“It may indicate a change in Gen Z’s shopping habits,” Rose Marroncelli, a senior fashion lecturer at Nottingham Trent University, was quoted as saying by The Independent.
She said low prices remain attractive to Gen Z but added that the group is becoming more environmentally conscious.
She also pointed to increased scrutiny from US and European governments. In the UK, the Competition and Markets Authority received stronger enforcement powers in 2025 to penalise businesses making misleading environmental claims.
“Companies found guilty of misleading practices risk not only financial penalties but also lasting reputational damage,” Marroncelli added.
The Independent says clothing repair is also gaining popularity, with services such as United Repair Centre repairing about 55,000 items a year for more than 35 performancewear brands, including Patagonia and Decathlon.
The Independent notes that, without significant change, the Ellen MacArthur Foundation estimates fashion could account for 26 percent of the world’s carbon budget by 2050.
“As interest in sustainability continues to rise, brands like Shein will have to rethink their ethical and sustainable practices in order to remain both relevant and profitable,” Marroncelli was quoted as saying by the news outlet.
Shein will need to balance low prices with transparency and quality to meet changing expectations and win consumers’ trust.
