Shein's risky London float: $66bn buyer's remorse ahead?
- Shein is valued at $66 billion and plans to float on the London stock market early next year.
- The company has been rejected by New York for a listing and is avoiding Hong Kong due to political issues.
- Investors are cautioned about the risks associated with fast fashion, particularly regarding sustainability and potential buyer's remorse.
Shein, a Chinese fast-fashion company, is preparing to go public in London early next year after being rejected by New York and avoiding a listing in Hong Kong due to political tensions. Valued at $66 billion in its latest funding round, the company has gained popularity among Gen Z shoppers, who often engage in what they call a 'Shein haul.' However, there are concerns among fund managers regarding the sustainability of Shein's business model, which heavily relies on low-cost, fast fashion that may lead to buyer's remorse. The company’s approach raises questions about the long-term viability of its practices, especially in a market increasingly focused on ethical consumption and environmental impact. Investors are advised to proceed with caution, as the fast-fashion industry faces scrutiny over its practices and the potential for significant financial losses.