Pramod Thomas is a senior correspondent with Asian Media Group since 2020, bringing 19 years of journalism experience across business, politics, sports, communities, and international relations. His career spans both traditional and digital media platforms, with eight years specifically focused on digital journalism. This blend of experience positions him well to navigate the evolving media landscape and deliver content across various formats. He has worked with national and international media organisations, giving him a broad perspective on global news trends and reporting standards.
FAST-FASHION online retailer Shein, which is hoping to list in London, faces a UK hearing on Jan. 7 where a British parliamentary committee plans to question the firm, founded in China in 2008, about the rights of workers in its supply chain.
The cross-party Business and Trade Committee will also question Temu, the global online marketplace owned by Chinese e-commerce firm PDD Holdings, as part of an inquiry into employment rights opened in October.
The committee, chaired by former Labour minister Liam Byrne, is examining the government's flagship employment rights bill in the context of protections for British workers. But it is also looking at how to ensure adequate protection against importing poor labour standards, including concerns over forced labour.
Shein's general counsel for Europe, Middle East and Africa (EMEA), Yinan Zhu, has been called to be a witness, an update on the committee website showed.
Stephen Heary, senior legal counsel at Temu, and Leonard Klenner, senior compliance manager at Temu, have also been asked to give evidence.
Shein declined to comment on the hearing. Temu was not immediately available for comment.
Both platforms, which sell clothes, shoes, gadgets and accessories at rock-bottom prices, have faced allegations of poor working practices at factories in China that make the products, and of forced labour in their supply chains.
Shein has previously said it is committed to respecting human rights and has a zero-tolerance policy on forced labour. Temu has also said it strictly prohibits forced labour.
Shein was founded in China but is now headquartered in Singapore.
Having grown rapidly in the US, Europe and the UK, it is awaiting regulatory approval from British and Chinese authorities for a London initial public offering after filing papers with Britain's market regulator in early June.
Margaret Beels, director of labour market enforcement at the Department for Business and Trade, was also asked to speak at the hearing, along with Independent Anti-Slavery Commissioner Eleanor Lyons, who last year raised concerns about Shein's London IPO.
McDonald's UK and Ireland CEO Alistair Macrow, and Claire Lorains, quality technical and sustainability director at supermarket group Tesco, were also called to give oral evidence.
Shein’s UK sales hit £2.05bn in 2024, up 32.3 per cent year-on-year, driven by younger shoppers.
The retailer benefits from import tax loopholes unavailable to high street rivals.
Faces mounting criticism over labour practices and sustainability as it eyes a London listing.
Tax edge drives growth
Chinese fashion giant Shein is transforming Britain’s online clothing market, capturing a third of women aged 16 to 24 while benefiting from tax breaks unavailable to high street rivals.
The fast-fashion retailer’s UK sales surged 32.3 per cent to £2.05bn in 2024, according to company filings, with pre-tax profits rising to £38.3m from £24.4m the previous year. The growth comes as established players like Asos struggle in an increasingly competitive landscape where young consumers prioritise value above all else.
Shein has partly benefited from a tax break on import duty for goods worth less than £135 sent directly to consumers, The rule lets overseas sellers send low-value goods to the UK tax-free, disadvantaging local businesses.
“The growth of Shein and Temu is a huge factor,” said Tamara Sender Ceron, associate director of fashion retail research at Mintel told The Guardian. “It is particularly successful among younger shoppers. It is also a threat to other fashion retailers such as Primark and H&M because of its ultra-low price model that nobody can compete with. It’s changed the market.
"The market dynamics reflect broader shifts in consumer behaviour. Online fashion sales reached £34bn last year, up 3 per cent, according to Mintel, but shoppers have become more cautious as disposable incomes shrink, and fashion competes with holidays, festivals, and streaming services for wallet share.
Scrutiny builds
Despite its commercial success, Shein faces mounting scrutiny. The company filed initial paperwork last June for a potential London Stock Exchange listing, but critics question its labour practices and environmental impact.
"Regardless of whether Shein gets listed on the London Stock Exchange, no company doing business in the UK should be allowed to play fast and loose with human rights anywhere in their global supply chains,” said Peter Frankental, economic affairs programme director at Amnesty International UK to BBC.
The “de minimis” rule has drawn renewed attention after US President Donald Trump scrapped a similar measure during his trade war with China.
Shein’s UK operation now employs 91 people across offices in Kings Cross and Manchester, focusing primarily on local market expertise.
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