Online fashion retail giant Shein has hired former European Commissioner Gunther Oettinger to bolster its lobbying efforts in Europe as it prepares to make its London stock market debut.
According to Bloomberg, Oettinger will act as an advisor to help the company navigate the complex regulatory environment of the European Union.
The appointment of Oettinger comes at a critical time for Shein, which is facing increasing regulatory scrutiny, including discussions about imposing customs duties on low-cost packages. The move could have a significant impact on Shein and other low-cost online retailers like Temu.
The European Commission has been monitoring the fast fashion industry since 2021, when President Ursula von der Leyen described it as “poison” because of the environmental impact of cheap, disposable clothing. Despite this, Shein has continued to expand in Europe and is preparing for an initial public offering that could value the company at around €58.5 million.
Oettinger, a senior member of Germany’s conservative Christian Democratic Union party and a member of the advisory board of consulting firm Kekst CNC, has faced criticism for making disparaging comments about Chinese people in the past. He apologized for making the offensive comments in 2016. Before joining the private sector, he held several senior positions in the European Union, including European Commissioner for Energy, Digital Economy and Society, and most recently for Budget and Human Resources.
Founded in China and now headquartered in Singapore, Shein has become one of the world’s most valuable startups thanks to its high-selling fashion model and ultra-low prices. However, its success has also brought criticism and competition, including the expansion into Europe of Temu, which now offers a platform with gaming capabilities.
Shein spent about €2.4 million on lobbying in the US and EU last year and has pledged to invest €64 million over the next five years to improve its supply chain.
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