The executive chairman of Shein, Donald Tang, has for the first time confirmed the company’s intention to debut on the London Stock Exchange. In an interview with the Financial Times, Tang emphasized that the initial public offering (IPO) is a natural step in the evolution of the business. “Shein will become a publicly traded company given the maturity and scale it’s experiencing. It’s only a matter of time,” Tang stated. The Singapore-based company submitted its application to British regulators last summer, which has intensified scrutiny over its business model, including questions about its environmental impact and labor conditions in its supply chain.
Despite growing pressure, Tang has defended the company’s financial solidity, downplaying reports of a 40% decline in net income in 2024, which stood at $1 billion. “We’ve maintained robust annual growth, although margins may fluctuate,” Tang declared, expressing optimism about the company’s prospects. According to Shein’s calculations, there is currently a global market valued at $2.3 trillion, of which the company captures only 2%. This vast market potential, coupled with the company’s existing growth trajectory, underpins Tang’s confidence in the business.
The choice of London as the desired listing destination has also sparked speculation. Shein initially considered going public in New York, but reportedly faced rejection from US authorities. When questioned about this, Tang sidestepped direct reference to US regulations, instead reiterating the company’s preference for the British market: “We believe the London Stock Exchange offers us an appropriate platform for growth and transparency.” This preference suggests that Shein views the London market as more conducive to its future plans and operational transparency requirements.
Shein’s Business Model Under European Scrutiny
In recent months, the company has intensified efforts to improve its reputation in Europe, launching sustainability investment projects and forming internal oversight committees. “We operate according to the laws and regulations of each country,” Tang asserted, while denying accusations related to its business model. As the listing process advances, Shein remains under the microscope of investors and regulators, who will assess its ability to operate with greater transparency and corporate responsibility.
Tang’s comments and the company’s actions indicate a strategic approach to addressing the concerns of European stakeholders. By emphasizing compliance with local laws and regulations, Shein aims to demonstrate its commitment to ethical business practices. The road to a successful IPO, however, will depend on how effectively Shein navigates these challenges and presents a compelling case for its growth potential and corporate governance to both British regulators and potential investors. With its sights set on the London Stock Exchange, Shein is poised to undergo significant scrutiny, which could ultimately shape the future of fast fashion and e-commerce companies seeking to go public.