Investors pressure Shein to slash IPO valuation to $30B

What happened According to insiders, Shein is reportedly under pressure to slash its valuation to around $30 billion, more than two-thirds lower than 2022’s $100 billion, as it pushes forward with its long-anticipated initial public offering (IPO) in London. Potential investors are calling for a more realistic figure to ensure the listing’s success. Fresh reports also suggest that the IPO may now face delays. According to the Financial Times, U.S. President Donald Trump’s recent tariff changes have added another layer of uncertainty to Shein’s public debut. The company had initially told investors that the IPO could occur as soon as the second half of April, but shifting trade policies may force a reassessment of that timeline. The Nanjing-founded fast-fashion giant, now headquartered in Singapore, has faced multiple setbacks in its bid to go public. Supply chain concerns, regulatory scrutiny, and geopolitical tensions have clouded its trajectory, forcing it to abandon its initial U.S. listing plans. Despite its dominance in the ultra-fast fashion space — outpacing legacy players like Zara and H&M — Shein is navigating mounting challenges, including growing criticism of its labor practices and the potential removal of key trade exemptions in the U.S. The Jing Take Shein’s struggle to maintain investor confidence highlights the shifting landscape of fast fashion and its sustainability in a post-pandemic market. The brand’s reliance on aggressive pricing and direct-from-factory supply chains helped it rise to prominence in the late 2010s, but that same model is now under increased regulatory scrutiny, especially as Western markets tighten import regulations. In August last year, it was announced that the company was expanding its logistics network in the U.K., scouting warehouse locations in England’s “golden logistics triangle,” signalling Shein’s commitment to strengthening its European operations and solidifying its presence. But Shein’s aggressive expansion strategy also faces rising competition from more service-driven Chinese counterparts. Taobao Global, for example, reported over $20 billion in gross merchandise value (GMV) at the end of 2024, achieving double-digit year-on-year growth. Unlike Shein and Temu, which rely on steep discounts and a high-volume, low-margin model, Taobao Global is targeting a more premium overseas Chinese consumer base. Its approach — focused on localized logistics, faster shipping, and a curated selection of brands — has allowed it to build stronger customer loyalty while sidestepping the volatility of deep-discount pricing wars. As for Shein, a valuation cut could help the company push its London IPO forward, but it also underscores waning investor enthusiasm for high-risk, high-reward fashion tech giants. The decline in its private market valuation suggests that, despite its global influence, Shein’s long-term growth prospects are being questioned. The company’s next moves — whether successfully launching on the London Stock Exchange, adjusting its supply chain strategies, or navigating shifting trade policies — will be pivotal in determining whether it can maintain its dominance or risk falling behind as consumer sentiment and regulatory landscapes evolve. The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.

Investors pressure Shein to slash IPO valuation to $30B

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Published February 17, 2025

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Investors pressure Shein to slash IPO valuation to $30B