Shein remains committed to listing as fast-fashion giant weathers US tariff storm

LONDON – Shein’s executive chairman said he remains committed to plans to take the fast-fashion retailer public despite being in the cross hairs of US President Donald Trump’s campaign to

rebalance global trade.

 

Mr Donald Tang, a former Bear Stearns banker, said in an interview that a listing would help earn public trust and increase transparency of Shein, which has been accused of tolerating labour violations among its Chinese suppliers.

Mr Tang was in London to talk about Shein weeks after investors said the company should cut its valuation by more than two-thirds to about US$30 billion (S$40 billion). He declined to comment on Shein’s valuation. 

As it seeks to convince investors to back its initial public offering, Shein is grappling with the Trump administration’s proposal to end tariff-free imports of small goods from China, the so-called “de minimis” exemption. Parcels under US$800 have long been excluded from duties.

US shoppers accustomed to buying US$8 T-shirts and US$12 dresses may baulk if a cancellation of the de minimis exemption prompts Shein to raise prices. “We want to make sure the customers are not impacted whatever storm is coming,” said Mr Tang, who added the company had not yet seen any signs of a slowdown in the US.

He said Shein would try to cut costs by packing more products together and reducing waste. Mr Tang also said stockpiling goods in the US could backfire by leaving the firm with unsold merchandise.

“It weighs you down because you have to warehouse it, you have to finance it, you have to figure a way to deal with it,” he said. “If you have to send it to a landfill, it’s not good for the planet.”

Mr Tang said Shein would comply with the new rules and “find a way” to protect customers. “We’re confident that’s not the issue for us,” he said.

Shein, founded in China and now based in Singapore, has made efforts to diversify its supply chain by asking some Chinese apparel suppliers to set up production capacity in Vietnam. Its suppliers also have factories in Brazil. 

Shein’s ultra-rapid production and low prices have shaken up the retail industry worldwide, particularly rival online fashion brands. 

The rapid growth has also drawn scrutiny, with allegations that staff in Chinese factories work 18-hour days and can be fined for making mistakes. Mr Tang said Shein had a “zero-tolerance” approach to forced labour and child labour, terminating contracts with factories that breach the laws. 

Shein, which was valued at US$66 billion in a funding round in 2023 and as much as US$100 billion in 2022, confidentially filed papers in June 2024 for a London listing.

“By going public, we can earn more efficiently the most amount of public trust, which is crucial for the growth of our company,” Mr Tang said in the interview. 

He said he “didn’t know” when Shein would receive approval from British and Chinese regulators for the potential listing. He also denied that Shein had asked the British regulator, the Financial Conduct Authority, for permission to float less than 10 per cent of the company’s shares. BLOOMBERG