HONG KONG, Shein has long been seen as a master of reinvention. In 2022, the fast-fashion giant shifted its headquarters and key trademarks from China to Singapore in a bid to appear more global. The move initially paid off, with booming U.S. and international sales propelling its valuation to $100 billion — ahead of rivals such as H&M. Yet, the retailer’s repeatedly delayed initial public offering and mounting setbacks highlight the limits of such makeovers.
Executive Chairman Donald Tang first aimed to take Shein public in New York in 2022, but U.S. lawmakers raised concerns over its supply chain practices in China. The company has maintained it enforces a strict zero-tolerance policy against forced and child labour.
A subsequent listing attempt in London also collapsed after failing to secure approval from the China Securities Regulatory Commission, which requires companies with substantial ties to China to obtain clearance before going public.
Shein’s third effort, this time in Hong Kong, now appears shaky. Bloomberg reported this week that the company has been exploring the creation of a mainland parent entity to strengthen its case — a move that would effectively restore its Chinese identity. While the reasons behind Beijing’s hesitation remain unclear, paying local taxes could help sway regulators.
The drawn-out listing saga has proven costly. More urgent challenges loom: in its largest markets, the U.S. has ended duty-free treatment for shipments under $800, while Europe is introducing a €2 levy on low-value e-commerce packages. At the same time, intensifying competition from Temu — owned by $169 billion PDD — is pressuring margins.
Financially, Shein is also under strain. The Financial Times reported earlier this year that net profit in 2024 fell nearly 40% to $1 billion, despite revenue growing by 20%. Investors, eager for liquidity, have since pushed the company to accept a sharply reduced valuation, with Bloomberg citing figures as low as $30 billion.
Shein’s struggles carry a broader warning for other Chinese firms attempting global reinventions. PDD, listed in New York but incorporated in the Cayman Islands, shifted its headquarters to Ireland in 2023, while ByteDance spreads operations across Singapore and California. Shein’s experience shows that corporate reshuffling has limits — and can even backfire.
