{"id":121978,"date":"2026-08-24T02:37:09","date_gmt":"2026-08-24T02:37:09","guid":{"rendered":"https:\/\/www.europesays.com\/europe\/121978\/"},"modified":"2026-08-24T02:37:09","modified_gmt":"2026-08-24T02:37:09","slug":"shein-grapples-with-eu-backlash-but-clients-keep-coming","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/europe\/121978\/","title":{"rendered":"Shein grapples with EU backlash, but clients keep coming"},"content":{"rendered":"

\"\"<\/a> Shein’s first attempt at a physical store, at the iconic BHV department store in Paris, proved short-lived (Dimitar DILKOFF) <\/p>\n

Shein’s meteoric growth has made it a lightning rod for critics of ultrafast fashion in Europe, where officials are trying to rein in its operations in the name of social and environmental responsibility. <\/p>\n

The probes, financial penalties and fierce debates have dampened but not fully curbed the enthusiasm of millions of clients in a key market for the China-founded online juggernaut. <\/p>\n

The company’s $1.7 billion stock market listing, announced on Monday, aims in particular to juice its international expansion. <\/p>\n

– Short-lived Paris store –\u00a0 <\/p>\n

Starting in 2012, Shein began online sales of its continually renewed stock of tops, dresses and other items, drastically undercutting the prices of its rivals — to say nothing of traditional clothing stores. <\/p>\n

Its European customer base rose to 156 million average monthly users by the end of last year, making Shein one of the continent’s biggest e-commerce platforms alongside China’s AliExpress (193 million users), and Amazon (around 180 million). <\/p>\n

In November, the group made waves with its first-ever physical outlet, a dedicated space in the storied BHV department store in Paris. <\/p>\n

Hundreds of customers lined up on its opening day, and dozens more people gathered to protest, requiring a heavy police presence to keep the tense situation from getting out of hand.\u00a0 <\/p>\n

Demonstrators slammed what they called inhumane working conditions at Shein’s suppliers, the environmental costs of selling clothes not made to last, and unfair competition against brick-and-mortar retailers struggling to stay open. <\/p>\n

The company says it holds its suppliers to strict compliance standards and does not tolerate forced labour. <\/p>\n

– Sex doll scandal – <\/p>\n

It did not help that just a few days before the Paris opening, France’s consumer protection agency said it had discovered childlike sex dolls for sale on Shein’s platform. <\/p>\n

Accusing the company of fostering child pornography, French officials asked the European Commission to open an inquiry under the bloc’s wide-reaching Digital Services Act. <\/p>\n

The EU investigation that opened in February 2026 targeted the sale of illicit goods “including child sexual abuse material” as well as what it alleged was Shein’s “addictive design”. <\/p>\n

In June, French authorities imposed two fines on Shein totalling more than 22 million euros ($25 million), citing problems with product traceability, environmental labelling and delivery times. <\/p>\n

The next month it secured an EU-wide halt on the sales of items with crocodile logos — deemed a counterfeit of France’s famed Lacoste brand of polo shirts. <\/p>\n

Overall, Shein has paid over 210 million euros in various French fines over the years, and Italy has also imposed fines alleging misleading environmental claims. <\/p>\n

In June, the BHV’s new owners said they would part ways with Shein, calling the decision to welcome a physical outlet a “strategic error”. <\/p>\n

– Regulatory pushback – <\/p>\n

Shein has called the penalties “disproportionate and discriminatory”, while China’s commerce ministry says they violate World Trade Organization rules. <\/p>\n

That did not stop the European Union from imposing duties on the billions of small, inexpensive retail parcels entering the bloc each year — most of them from Chinese e-commerce sites. <\/p>\n

Since July, a duty of three euros per item applies to packages valued at less than 150 euros, similar to a move last year by US President Donald Trump’s administration against products originating in China. <\/p>\n

But the EU fee applies to the type of item imported, not the number. So a person buying five T-shirts pays just three euros, but someone buying a T-shirt, jeans and socks would pay nine euros. <\/p>\n

Brussels says the duty helps compensate for overwhelmed customs authorities given the popularity of e-commerce, in particular for clothes and other items from China and elsewhere that do not comply with EU standards. <\/p>\n

According to the head of the European Parliament’s trade committee, Bernd Lange, the number of small parcels from abroad have more than quadrupled to 5.88 billion since 2022. <\/p>\n

Starting in November, the EU will impose a still-undetermined handling fee on such parcels. <\/p>\n

It is far from clear how effective the duties will be, especially as online giants like Shein could build warehouses in Europe to limit the impact. <\/p>\n

After France imposed its own duty of two euros on such parcels this year — before the EU system kicked in — the customs office estimated it brought in around 2.3 million euros per month. <\/p>\n

That was far below the 33 million euros per month the government had expected in the 2026 budget. <\/p>\n

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