Shein to raise 2 billion and go public in the United States: bad news for western fashion?

For some people, Shein seems like the Messiah offering clothes for all tastes and sizes at a lower price point. For others, it is the big bad wolf that is devastating the entire fashion industry, contributing to the closure of many mid-range brands (and the many jobs that go with it), and above all devastating the most fundamental human rights of its workforce from guarantee. bargain prices. And if this ultra-fast fashion giant already weighs more than the Inditex groups (Zara, Bershka, Massimo Dutti…) and H&M (H&M, COS, Arket, Monki…) combined, this is just the beginning. Indeed, Shein to Raise $2 Billion by End of March 2023, Going Public in US in Second Half of Year.

As reported by the news agency ReutersShein reduced its valuation to $64 billion in the round, down a third from a funding round a year earlier, according to people familiar with the matter. It still would be one of the most important IPO in the world for this year 2023. It is also a way to gauge American investors’ appetite for Chinese companies at a time of heightened geopolitical tensions, the news agency said.

If Shein goes public in the U.S., he smells burnt to Western fashion

Chinese entrepreneur Chris Xu, who founded Shein in 2008 in Nanjing, now resides in the city-state of Singapore, where he set up a holding company that Shein now depends on. This is what exempts the ultra-fast-fashion leader from the Chinese regulatory approval request which greatly complicates the establishment of Middle Kingdom companies abroad. How convenient…

Everything is therefore aligned so that Shein can devastate the entire western fashion industry, increasingly polarized between ultra low cost that has nothing to do with ethics and luxury or niche brands.