To The Moon

According to foreign media, SHEIN (Shein) has been blocked from listing in London.

2020 rumored to go to the U.S. listing, to 2023 November application in New York listing, in May this year to contact the London Stock Exchange.SHEIN has never replied positively, but various sources indicate that its overseas listing of the bumpy, the Singapore-based multinational e-commerce company is facing a key step.

Company Background

Founded in 2008, Shein specializes in the fast fashion women's wear market and has rapidly expanded globally.

With its flexible "small order, quick response" supply chain model, where small quantities are produced in quick response to market demand, reducing inventory costs and increasing product turnover, Shein has built a broad customer base in key global markets such as North America, Europe and the Middle East, and is rapidly increasing its brand presence through social media and online celebrity marketing.

Financial situation

Shein's financial performance has been extremely impressive. in 2022, the company's profits reached $700 million, the fourth consecutive year of profitability, albeit lower than the previous year's $1.1 billion.

Shein's revenues are growing at a CAGR of 180% between 2017 and 2020, with revenues of up to $10 billion in 2020. in 2022, the company's GMV reaches $30 billion, and it is expected to double to nearly $60 billion by 2025, and by 2027 it is on track to surpass $100 billion.

Company Shareholders

Shein's shareholder structure is relatively complex. In recent years, Shein has attracted a large amount of international capital through multiple rounds of financing, including IDG Capital, Sequoia Capital, Tiger Global Management, etc. These investors have high expectations for Shein's rapid growth and global market expansion.

IPO Challenges

• Stringent supply chain audit requirements have caused Shein to spend a great deal of time and effort dealing with them;

• Higher taxes undoubtedly increase the cost of operating a business;

• Increased scrutiny of parcels has also affected their logistical efficiency to some extent.

• Shein is also classified as a "mega online platform", which puts additional regulatory pressure on it.

Controversies and challenges

Despite Shein's remarkable market success, the company has faced many controversies and challenges:

1. Intellectual Property Issues: Shein has been repeatedly accused of copying designs from other brands, which has challenged the company's brand reputation. To address this issue, the company needs to strengthen original design protection and copyright compliance.

2. Labor conditions: Shein's supply chain involves many small and medium-sized manufacturers, and there have been reports of poor labor conditions and low treatment of workers in some of its factories. The company needs to improve its supply chain management to ensure that labor conditions meet international standards in order to maintain its brand image.

3. Environmental Impact: As a fast fashion brand, Shein's environmental impact is of great concern. Fast fashion itself is not good for the environment due to the short production cycle and the high amount of discarded clothes, Shein needs to invest more in sustainable development and promote environmentally friendly materials and production processes to reduce the burden on the environment.

4. Regulatory pressures: As Shein expands globally, it needs to respond to regulatory requirements in different countries and regions, especially compliance pressures in the areas of data protection and consumer protection. The company needs to build a strong compliance system to ensure the legality and compliance of its operations in each location.

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