Shein chairman states desire to become a public company
- Donald Tang, executive chairman of Shein, expressed the company's goal to be a listed entity.
- Shein has faced scrutiny over its supply chain practices, particularly regarding cotton sourcing from Xinjiang.
- The company aims to enhance accountability and transparency through its planned IPO.
In recent developments, Donald Tang, the executive chairman of Shein, confirmed that the fashion retailer, which originated in China and is now based in Singapore, has ambitions to go public. Over the past year, Shein has engaged in discussions regarding an initial public offering (IPO) on the London Stock Exchange. Tang expressed that the company aspires to be held accountable and transparent as a public entity, a crucial shift given the scrutiny faced due to allegations regarding its supply chain and labor practices. Shein has found itself in a challenging position while preparing for its IPO. Political pressures in the United Kingdom have intensified scrutiny over the company's sourcing practices, particularly allegations connected to cotton sourced from Xinjiang, China. This region has been criticized internationally for severe human rights abuses against Uighur minorities, including forced labor. In an interview, Tang refuted these accusations, reaffirming Shein's compliance with laws and regulations of the markets they operate in. Compounding these challenges, the company's IPO plans are complicated by regulatory changes proposed in the United States. Should these changes be implemented, they would end the de minimis rule, impacting the tariff exemptions for goods valued under $800 and introducing a 10% tariff on all imports from China. This geopolitical climate amplifies the stakes for Shein as it approaches its IPO. Despite these numerous hurdles, Shein's aspirations remain strong, as investors are keen on seeing the company float with an estimated valuation of around $30 billion. Tang refers to the ongoing IPO discussions as the 'elephant in the room,' emphasizing that, while plans are advancing, specific discussions surrounding company valuation have still not occurred. The future trajectory of Shein as a public entity holds significant implications, both for its operational strategies and for broader issues of corporate responsibility in the fashion industry.