Exciting news in the fashion industry as controversial Chinese-based fast fashion giant Shein has quietly filed for an IPO valued at around $63 billion in London. This move, reported by reputable outlets like the Wall Street Journal and CNBC, has raised eyebrows and sparked discussions.
While Shein initially sought an IPO in the U.S., recent controversies surrounding its questionable labor practices have made this option less favorable. It’s interesting to note that the company’s previous attempt to go public in the U.S. in November 2023 at a $90 billion valuation was unsuccessful.
Shein, headquartered in Singapore since 2021, but with most operations still in China, may face hurdles in obtaining the necessary approvals for a U.S. IPO. Despite this, the company’s remarkable performance in sales last year, surpassing industry giants Zara and H&M with $32.2 billion in revenue, has solidified its position in the industry.
However, Shein has not been without its fair share of controversies. Last summer, the company was embroiled in a legal battle with three fashion designers over alleged copyright infringement. The designers accused Shein of replicating their designs without permission, prompting a lawsuit citing “egregious” actions by the company.
Another lawsuit in April 2024 raised further concerns about Shein stealing designs and using AI technology to misappropriate artwork from designers. Despite these allegations, Shein has vehemently denied any wrongdoing and is prepared to defend itself against such claims.
Recent reports indicate that Shein was valued even higher at $66 billion in a fundraising round last month, a testament to its strong market presence despite the controversies surrounding the brand. It remains to be seen how the IPO filing in London will unfold and what the future holds for this fast fashion powerhouse.