You must be aware that there have been a lot of Chinese e-commerce companies that have entered the US market in the last few years and this is all thanks to the success that the Alibaba model has received due to its deep discounting which has attracted a lot of the US customers who are even spending more on these platforms as compared to the US platforms such as Amazon and Walmart. It is worth noting that Shein has also had its fair share of controversies this year because of the alleged copying reports and design thefts. We also know that Shein has been settling these allegations with the said copyright owners which means that the reports might be true.
Anyways, we are here to report that Shein has just announced its plans for an IPO in the US which means that the company will go public in the country. Reuters reported that Shein “has been working with at least three investment banks about a potential initial public offering (IPO) and was in talks with the New York Stock Exchange and the Nasdaq”. The Wall Street Journal also reports that “Goldman Sachs, JPMorgan Chase, and Morgan Stanley have been hired as lead underwriters on the offering, which could happen in 2024.”
Shein was valued at more than $60 Billion in May of this year and we are expecting that this valuation may have only risen since then which means that Shein could become the most valuable Chinese e-commerce startup once it goes public next year. In 2021, Didi Global which is a ride-hailing service was the most valuable Chinese company with a $68 Billion valuation and no one has come close to it since then. It is worth noting that Shein targets the audience that loves to wear fast fashion clothes but it is also worth noting that there are environmental concerns related to fast fashion clothing as these type of clothes are thrown out once they go out of fashion and this leads to a huge dumping of clothes which are not usually reused in any other form. Shein has also partnered with SPARC group for its expansion in the US.