Shein moves forward with IPO plans amidst US trade pressure

It is expected to boost transparency and build trust in the company.

Shein’s Executive Chairman Donald Tang said the company is committed to going public despite facing pressure from Donald Trump’s campaign to curb tariff-free imports from China, Bloomberg reported.

Speaking in London, Tang said an initial public offering (IPO) would boost transparency and build trust in Shein, which faces allegations of labor violations in its supply chain. “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.

Shein, originally founded in China and now headquartered in Singapore, confidentially filed for a potential London IPO in June 2024. Investors have reportedly urged the company to slash its valuation to around $30b—down from $66b in 2023 and $100b in 2022, the report noted.

The company is also dealing with the potential end of the U.S. “de minimis” rule, which exempts imports under $800 from tariffs. Losing that exemption could force Shein to raise prices on its low-cost items, such as $8 T-shirts and $12 dresses. “We want to make sure the customers are not impacted whatever storm is coming,” Tang said.

Shein is exploring cost-cutting measures, including shipping products in bulk and reducing waste. However, Tang warned that stockpiling inventory in the U.S. could lead to unsold goods.

“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 confirmed that Shein will comply with any new trade regulations. “We’re confident that’s not the issue for us,” he said, adding that the company is prepared to “find a way” to protect customers.

Shein has asked some Chinese suppliers to expand production in Vietnam and Brazil to diversify its supply chain. The company’s rapid production model and ultra-low prices have disrupted the global fashion market but attracted criticism over labor practices. Tang said Shein has a “zero-tolerance” policy on forced and child labor and cuts ties with factories that break the law.

Tang said he does not know when UK and Chinese regulators will approve the IPO. Additionally, he denied reports that Shein asked the UK’s Financial Conduct Authority for permission to float less than 10% of its shares.