Shein asks to go public in the United States: the Chinese clothing giant begins the procedures

Shein, in a strategic move that resonates in financial circles, has begun its confidential application to list on the United States stock exchange, a milestone that could materialize in 2024. According to Wall Street Journal sources, the company has added to its team financial giants such as Goldman Sachs, JPMorgan Chase and Morgan Stanley to facilitate this momentous step.

Founded in 2008 in China and later moved to Singapore, Shein has managed to position itself at the top of the global fashion industry, especially among the young audience. With an estimated valuation of around $66 billion in its latest private round, the firm seeks to enhance its presence on Wall Street, even exceeding this figure.

Impact and expansion of Shein

The brand, which has revolutionized the fashion sector with its focus on e-commerce, apart from its occasional “pop-up” stores, has expanded internationally with a special focus on the US and European markets. In 2022, Shein reported profits of 800 million dollars and a turnover that amounted to 23 billion dollars.

Criticisms and challenges

However, Shein has not been exempt from criticism. Her “fast fashion” model, which involves mass production of clothing at low prices, has raised concerns about environmental impact and labor practices. US authorities have launched a thorough investigation of its supply chain, in particular the provenance of cotton from the Xinjiang region, which has been in the spotlight for alleged use of forced labor.

Growth Strategies

In an effort to strengthen its presence in the United States and in the digital field, Shein has sealed an agreement this year with the SPARC group, owner of Forever 21 and other clothing brands, and has acquired the British brand Missguided. These actions underline her ambition to expand and diversify her reach in the competitive fashion market.

What is Shein?

Shein, founded in 2008, has become one of the leading brands in the world of fashion, specializing in e-commerce. With an affordable pricing strategy and quickly updated trends, it has established itself as a popular choice, especially among younger consumers. Its focus on “fast fashion” and large-scale production has generated both commercial success and debates about sustainability and labor practices in the textile industry.