Shein Stays Committed to IPO

Shein’s executive chairman said he remains committed to plans to take the fast-fashion retailer public despite being in the crosshairs of President Donald Trump’s campaign to rebalance global trade.

Donald Tang, a former Bear Stearns banker, said in an interview that a listing would help earn public trust and increase transparency of Shein, which has been accused of tolerating labour violations among its Chinese suppliers.

Tang was in London to talk about Shein weeks after investors said the company should cut its valuation by more than two-thirds to about $30 billion. He declined to comment on Shein’s valuation.

As it seeks to convince investors to back its IPO, Shein is grappling with the Trump administration’s proposal to end tariff-free imports of small goods from China, the so-called “de minimus” exemption. Parcels under $800 have long been excluded from duties.

US shoppers accustomed to buying $8 T-shirts and $12 dresses may balk if a cancellation of the de mimimus exemption prompts Shein to raise prices.

“We want to make sure the customers are not impacted whatever storm is coming,” said Tang, who added the company had not yet seen any signs of a slowdown in the US. He said Shein would try to cut costs by packing more products together and reducing waste. Tang also said stockpiling goods in the US could backfire by leaving the company with unsold merchandise.

“It weighs you down because you have to warehouse it, you have to finance it, you have to figure a way to deal with it,” he said. “If you have to send it to a landfill, it’s not good for the planet.”

Tang said Shein would comply with the new rules, and “find a way” to protect customers. “We’re confident that’s not the issue for us,” he said.

Shein, founded in China and now based in Singapore, has made efforts to diversify its supply chain by asking some Chinese apparel suppliers to set up production capacity in Vietnam, Bloomberg reported last month, citing people familiar with the matter. A Shein spokesperson denied at the time that the company planned to boost production in Vietnam, without elaborating. Shein suppliers also have factories in Brazil.

Shein’s ultra-rapid production and low prices have shaken up the retail industry worldwide, particularly rival online fashion brands.

Tang cited a 2024 survey that showed the vast majority of customers agree clothes don’t have to be expensive to be long-lasting value. “We treat that as a basic human right, just like food, wearing something trendy and pretty,” he said. “It shouldn’t just belong to the elites.”

The rapid growth has also drawn scrutiny, with allegations that staff in Chinese factories work 18-hour days and can be fined for making mistakes. Tang said Shein had a “zero-tolerance” approach to forced labour and child labour, terminating contracts with factories that breach the laws.

Shein, which was valued at $66 billion in a funding round in 2023 and at as much as $100 billion in 2022, confidentially filed papers in June for a London listing.

“By going public we can earn more efficiently the most amount of public trust, which is crucial for the growth of our company,” he said in the interview.

Tang said he “didn’t know” when Shein would receive approval from UK and Chinese regulators for the potential listing. He also denied that Shein had asked the UK regulator, the Financial Conduct Authority, for permission to float less than 10 percent of the company’s shares.

By Sabah Meddings and Katie Linsell

Learn more:

Shein Profit Dropped Last Year, Further Challenging IPO, FT Says

The Financial Times reported the fast-fashion retailer’s profit slumped by almost 40 percent last year and that net income fell to $1 billion.