The Chinese fashion giant Shein is looking for an initial public offering in the United States. It is as per the report from Bloomberg. An IPO may be difficult on-road for Shein. It is bound to face social, environmental, and governance concerns. ESG can be an incurring issue too. Shein did ask for a 2022 IPO in the country.
The fashion giant is currently valued at $100 billion. It concerns the scrutiny for stylish and cheap products in the line of clothing. It has built a strong community of influences. And it has an independent and prolific production chain. The Swiss watchdog, however, tells a different story. It brought to the notice the toxic working culture of Shein. Employees are subject to 75-hour workweeks. The focus is on concern with the large investors.
It is about investors like Sequoia Capital China. Tiger Global Management also invests in the company. The moves are with Shein making into fashion giant in western countries. It is trying continuously to improve its ESG. It is soon to go for public offering.
Critics continue to ask a question about the fashion giant’s short-term wearability. Fast fashion is having a hard time in a world where comfort is the new trend. The business continues to be wasteful and dangerously impacts the environment. It is about the World Bank 2019 report.
A producer will be sharing a 50 billion made in the year 2000. The ESG also discusses the consciousness of the fashion giant in the world. Zara and Hennes & Mauritz continue to grow. Their image concerning the recycling drives is also gaining focus.
The company does value growth over sustainability. There is a continuous attempt to minimize risk concerning sustainability. The focus is on bringing health practice into the overall process. The fashion giant will need to work hard before going public.
