Shein Group Ltd., a Chinese global e-commerce platform in the fast-fashion segment, has suspended preparations for an IPO amid the introduction of new US tariffs and is awaiting approval from Chinese regulators. This is reported by foreign media.
The policy of American President Donald Trump has increased uncertainty in the market, affecting the volume and timing of Shein's IPO. The decision to repeal the de minimis rule, which exempted packages with goods worth no more than $800 from tariffs, is a blow to Shein's core business.
Shein was forced to lower the company's valuation to $30 billion from $90 billion under investor pressure. From the point of view of Shein shareholders, a reduction in value is necessary to conduct an IPO in the UK amid uncertainty in global trade relations and rising political tensions.
In 2024, Shein redirected its IPO application to London after a failed listing attempt in the United States. Investors tried to sell shares of Shein on the private market, but the company's market value was only $45 billion.
Shein has become one of the most expensive startups in the world due to its large-scale activities selling budget goods. Investors include IDG Capital, Mubadala Investment Co., Tiger Global Management and HongShan Capital (formerly Sequoia Capital China).
Shein and rival Temu, controlled by PDD Holdings Inc., attract buyers with cheap goods supplied directly from Chinese suppliers and compete with companies such as Amazon. com Inc.
Shein is a global e-commerce platform in the fast-fashion segment, which involves the rapid production and distribution of cheap clothing imitating fashion trends. The fast-fashion strategy is used by Primark, H&M, Shein, Zara. The company offers women's and men's clothing, accessories, shoes, bags, etc. Shein mainly focuses on Europe, America, Australia and the Middle East and produces 500 to 2,000 new products per day. Shein is headquartered in Nanjing, China.
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