Ethical Brands Struggle as Fast Fashion Titan Shein Soars

In the ever-evolving world of fashion, ethical brands are grappling with immense challenges, while fast fashion giant Shein continues its meteoric rise. Valued at a staggering $66 billion, the China-founded company is set to launch one of the largest IPOs globally this year in London. This development prompts the question: What happened to the movement towards a slower, more considered approach to dressing?

Slow fashion brands are facing significant hurdles as the market shifts. The rise of the rental market, where consumers can hire outfits for a few days instead of buying, and increasing production costs are key factors contributing to their struggles. Additionally, sustainable fashion tends to be more expensive, and with the West suffering from a cost-of-living crisis, many consumers are prioritising affordability over ethical considerations.

Shein, a fast fashion behemoth, is moving ahead with an initial public offering (IPO) in the coming days, filing in London. This would be the largest IPO ever for the UK financial capital and the biggest in dollar terms for the fashion industry. The company claims it is growing faster and is more profitable than Zara owner Inditex, justifying a $66 billion valuation. However, doubts remain about whether this monumental deal will happen until the moment shares start trading.

The UK government and financial sector have reportedly lobbied hard for Shein to list in London instead of the more robust New York. Shein could benefit from a less hostile environment, as US lawmakers frequently allege that the company's mostly Chinese supply chain relies on forced labour, which Shein denies. Additionally, there are threats to close a customs loophole that has helped fuel its growth.

While the UK is eager to attract a major IPO to London’s struggling City, it is unlikely Shein’s troubles can be contained on the other side of the Atlantic. UK politicians, consumers, and investors are, if anything, more attuned to environmental, social, and governance (ESG) issues. Even if Shein avoids major backlash for labour or environmental reasons, it still needs to address the rise of rival Temu to draw investors.

One of Shein’s key strengths lies in its agile marketing strategies. The brand’s presence on platforms like TikTok (16M+ followers) and Instagram (32M+ followers) is prolific, allowing it to rapidly respond to trends and engage with a vast, youthful audience. Through influencer collaborations and viral marketing campaigns, Shein maintains a constant buzz, outpacing small, sustainable indie brands that lack the resources to compete on such a scale.

In the slow fashion sector, brands are closing down at an alarming rate. In March, Shopard, a purveyor of ethically made high-waisted granny panties and sculpting tank tops, announced its closure. This was quickly followed by Selva Negra, an eclectic evening wear line, citing "financial distress" as the reason for winding down operations.

April saw the shutdown of HAH, a sustainable lingerie brand featured by Victoria’s Secret and Free People. Later that month, Elena Bridgers, known for its transparent supply chain in maternity wear, also closed its doors.

The trend continued into May, when Mara Hoffman, famous for her figure-hugging colourblocked dresses, announced the closure of her namesake label. Hoffman had been in business since 2000 and shifted to a sustainable production model in 2015. Women's occasionwear brand The Vampire's Wife, founded by former model Susie Cave, also announced the decision to cease trading with immediate effect, citing wholesale market difficulties.

Despite these challenges, some ethical brands are managing to thrive. Dr Antoinette Fionda-Douglas, co-founder of sustainable label Beira and a UN-accredited sustainability expert, remains a beacon of hope. "Shein, the ultra-fast fashion brand, epitomises the very issues that plague the fashion industry," she says. "Their poor-quality, inexpensive clothing poses potential risks to wearers and is produced under some of the most unethical conditions. Despite being rejected by the New York Stock Exchange, they are being welcomed here. Why? Once again, greed prevails in the markets."

Fionda-Douglas continues, "Sustainable fashion businesses face significant challenges. Time and again, large fashion corporations have demonstrated their inability to act ethically. As consumers, we must recognise that clothing should not be as cheap as a cup of coffee. The relentless disappointments from fast fashion giants erode our trust. Our response should be to buy less and invest in higher quality. Fast fashion companies only respond to profit margins. Therefore, it is crucial to support small, sustainable, and ethical businesses that are transparent and purpose-driven. By investing in these businesses, we safeguard our health, avoid contributing to the disposable 'fossil fashion' culture, and do not support modern-day slave labour."

Despite the criticisms, Shein’s business model highlights a significant demand for affordable, trend-led clothing, especially among younger consumers. The company's use of data-driven design and rapid production cycles allows it to stay ahead of fashion trends and offer a wide variety of styles at low prices. This approach, while controversial, demonstrates a keen understanding of market dynamics and consumer behaviour.

The landscape of slow fashion may be fraught with obstacles, but with innovative strategies and a committed consumer base, there is hope for sustainable brands to navigate these turbulent times. As Shein prepares for its landmark IPO, the fashion world watches closely, reflecting on the true cost of fast fashion and the enduring value of ethical, sustainable choices.

Our 5 Favourite Sustainable Scottish BrandS

Isolated Heroes

Isolated Heroes, based in Dundee, is known for its bold, colourful, and eclectic designs. Founded by designer Samantha Paton, the brand has garnered attention for its unique approach to fashion, often featuring sequins, vibrant prints, and standout statement pieces. Isolated Heroes focuses on creating inclusive, ethically produced clothing that empowers individuals to express themselves freely through fashion.

REJEAN

ReJean is a sustainable fashion brand based in Glasgow, founded by Siobhan McKenna. ReJean specialises in creating unique, upcycled denim garments. The brand transforms vintage denim into modern, stylish pieces, emphasising sustainability and reducing textile waste. Each ReJean piece is handcrafted, ensuring that every item is one-of-a-kind. Their commitment to ethical and environmental consciousness has made ReJean a notable name in the sustainable fashion industry.

CLAED

Claed is a fashion brand dedicated to creating stylish, high-quality garments with a commitment to sustainability and ethical production. Known for its minimalist and contemporary designs, Claed emphasises the use of eco-friendly materials and responsible manufacturing processes. The brand often highlights transparency in its supply chain and strives to reduce its environmental impact. Claed’s collections typically feature timeless, versatile pieces that appeal to conscious consumers seeking both style and sustainability in their wardrobe choices.

KESTIN

Kestin is a contemporary menswear brand founded by Kestin Hare in 2015. The brand is renowned for its high-quality, functional, and stylish clothing that blends traditional craftsmanship with modern design. Kestin's collections often draw inspiration from Scottish heritage and the natural landscape, resulting in garments that are both rugged and refined. The brand emphasises sustainable practices, local manufacturing, and the use of premium materials. Kestin has gained a reputation for creating versatile, durable pieces that appeal to those who appreciate thoughtful design and quality craftsmanship.

 Hayley Scanlan

Hayley Scanlan is a Scottish fashion designer known for her bold and edgy designs. Based in Dundee, she launched her eponymous label, H.S., which has gained significant attention in the fashion world. Hayley Scanlan's work is characterised by its use of innovative materials, striking silhouettes, and contemporary aesthetics. She often draws inspiration from street style and youth culture, creating pieces that are both fashionable and wearable.