Shein, the fast-fashion giant, is strengthening its lobbying efforts in Europe ahead of its imminent initial public offering (IPO) in London. The company has recently hired former EU budget commissioner Günther Oettinger to navigate the increasingly complex regulatory landscape that could impact its operations in the region. This strategic move comes as the European Union (EU) contemplates implementing new customs duties on inexpensive imports—legislation that could prove detrimental to many low-cost online retailers.

Since 2021, the European Commission has scrutinized the fast fashion industry, with EU President Ursula von der Leyen calling it “poison” due to the environmental repercussions associated with cheap, throwaway clothing. Despite this scrutiny, Shein has aggressively expanded within Europe and is eyeing an IPO that could value the company at around £50 billion (approximately $64 billion). This expansion creates a pressing need for Shein to effectively manage regulatory challenges, especially as new duties could significantly raise costs on its products.

Oettinger’s previous roles within the EU provide him with unique insights into the governmental machinations that could affect Shein’s future. He has also faced controversy over past comments regarding China, a pivotal market for Shein. The company has increasingly found itself at the center of discussions about sustainability practices and ethical labor policies, particularly following reports concerning its supply chains.

To prepare for its IPO and mitigate regulatory risks, Shein has allocated around $2.5 million for lobbying efforts in the U.S. and Europe and has pledged an additional $70 million over the next five years to enhance its supply chain transparency. As the e-commerce landscape shifts, understanding and adapting to regulatory frameworks will be essential for Shein’s resilience and growth in the competitive fashion sector.