SHEIN has hired former EU commissioner Günther Oettinger to help manage European regulatory challenges as it prepares for an IPO in London. Oettinger, who has held several top positions in the EU, will assist SHEIN in addressing potential regulatory scrutiny and new import duties on low-cost goods.

The company is facing issues such as possible customs duties on cheap parcels, which could impact SHEIN and other low-cost online retailers. Despite criticism from the European Commission about the environmental impact of fast fashion, SHEIN is expanding in Europe and preparing for an IPO that could value the company at about £ 50 billion (US $ 64 billion).

The EU plans to close a loophole that exempts items valued below € 150 (US $ 164) from import duties, which would increase costs for SHEIN and similar businesses. Oettinger, also on the advisory board of consultancy Kekst CNC, will play a key role in helping SHEIN navigate these changes.

SHEIN has been criticised for its environmental impact and labour practices, with past reports linking some of its garments to forced labour in China’s Xinjiang region. The company has pledged to improve its supply chain and committed US $ 70 million over the next five years to these efforts.

In 2022, SHEIN spent around US $ 2.5 million on lobbying in the US and the EU, with plans for further investment. Meanwhile, there is no record of its rival Temu spending on lobbying in the EU, though European Commission regulators have stated they communicate with Temu’s representatives directly.

Hiring Oettinger is a strategic move for SHEIN to strengthen its presence and influence in Europe as it faces growing regulatory scrutiny and competition in the fast-fashion industry.