Last week, Shein’s IPO came closer to fruition, but the Chinese fast fashion giant seems to have abandoned its intent to go public in the U.S. Don’t forget to subscribe to the Glossy Podcast for interviews with fashion industry leaders and Week in Review episodes, and the Glossy Beauty Podcast for interviews from the beauty industry. –Danny Parisi, sr. fashion reporter
Shein’s London IPO
Chinese fast fashion giant Shein has been seeking an initial public offering for over a year now. The company was rejected for membership to the U.S.-based National Retail Federation, and numerous U.S. lawmakers including Senator Marco Rubio have expressed their support for the SEC blocking any potential U.S. IPO for the Chinese company.
But now Shein has apparently abandoned its attempts to go public in the U.S. Instead, Bloomberg reported that Shein will likely IPO in London as soon as this week. The IPO would reportedly value Shein at over $64 billion, making it one of the largest IPOs in the history of the U.K. Shein, which is based in Singapore, still needs approval from the China Securities Regulatory Commission for the IPO to go through.
Shein is clearly shifting its strategy for reaching Western consumers. The ongoing trade war between the U.S. and China has made Shein’s U.S. inroads more difficult. In the last year, specifically as a counter to China, the U.S. has introduced legislation like the Americas Act aimed at strengthening trade and manufacturing ties between countries in the Americas. Meanwhile, other Chinese entities like TikTok have also faced strong opposition from U.S. lawmakers.
And then there’s the bad press. A Shein influencer trip has become infamous for its tone-deaf approach to showcasing its factories. Shein also been accused of RICO violations and selling products featuring Nazi imagery, and it’s been sued by another Chinese fast fashion giant, Temu.
But despite everything, Shein has continued to grow. Its global revenue is reportedly “a lot more” than $30 billion, and videos of “Shein hauls” are popular in American social media circles. Last year, Shein became a third-party owner of Sparc Group, the joint venture between Authentic Brands Group and Simon Property Group that owns a vast number of American fashion brands like Forever 21, Brooks Brothers and Nautica. The company has already put the Sparc Group ownership to work, putting Shein shop-in-shops in Forever 21 stores across the country.
While Shein may not be going public in the U.S., it will lno doubt keep targeting growth among U.S. customers.
