What: The rise of Shein seems unstoppable

Why it is important: Department stores need to find credible sources of fashion proposals before Shein and its likes kill the landscape.

Shein, an online fast-fashion company, has seen a significant increase in profits, reaching over USD 2 billion in 2023 with USD 45 billion in gross merchandise value. This marks a substantial growth from previous years. Awaiting regulatory approval from Beijing, Shein is planning a major IPO in New York or London, which could value the company at over USD 60 billion. The IPO is a test of Beijing's stance on Chinese companies incorporating overseas and raising funds in the US. Despite relocating its headquarters to Singapore, Shein operates largely from China, with a significant number of employees based there. The company's founder, Xu Yangtian, also moved to Singapore, holding a 37% stake in Shein. Amidst its IPO efforts, Shein faces scrutiny in Washington regarding its business model and connections with the Chinese government .

Shein profits double to over USD 2bn ahead of planned listing