Shein is expected to become one of the largest stock market floats in London Stock Exchange history, valued at £50 billion.
Amid strong interest from New York and Paris, the online fashion brand was founded in Nanjing, China, but is currently based in Singapore. The government and Labour have held negotiations with the company to try and convince it to float in the UK.
According to Bloomberg UK, the business may submit an IPO application as soon as this week. Furthermore, The Times stated that carrying out the action in the UK would be a "much-needed milestone for ministers and City chiefs who have been battling to restore London's status as a global listing venue after a series of blows".
The "ultra-fast" fashion retailer was established in 2008, and in the last ten years, its popularity has skyrocketed. It has quickly grown globally while acquiring a large number of its competitors. Shein is currently "the hottest ticket in town" for Gen Z shoppers—those under 30—according to Retail Gazette, after it was formally recognized as the biggest fashion store globally in 2022. It declared revenue of £18.9 billion for that year.
According to The Independent, "low-cost, throwaway items that are constantly being marked down" are the foundation of the Shein business strategy.
Its "entire premise is based on fashion being disposable, the implication being: here, buy these very cheap and often poorly made clothes, wear them once, then buy something else." About 10,000 new products are released every day. And despite how absurd it can appear to some, that strategy is obviously effective."
This Is Money reported that young consumers in particular have been "enticed away from rivals such as Boohoo and Asos thanks to ultra-cheap prices" that can be as low as £3 for a top or £4 for a dress.
Venetia La Manna, a representative of fair fashion, stated, "Shein is a tech company first and foremost, not a fashion brand." "It uses highly advanced SEO, which means it can quickly react to trends and churn [clothes] out quickly."
On social media sites like TikTok and Instagram, it is credited for introducing the concept of "haul" videos, in which influencers and content producers purchase large quantities of apparel and try it on for their followers. Shein has "seized the opportunity to allow many young designers – who lack accessibility into the industry – to sell their designs on its e-commerce site and take part in dedicated programs, TV shows, and catwalks," according to a Glossy magazine story published at the same time.
Shein's success is all the more amazing considering that it has to contend with rigorous scrutiny on its human rights record, labor conditions, and carbon footprint in the midst of a broader movement towards sustainable fashion.
A strategy designed to "accelerate" the retailer's "journey towards a sustainable future accessible to all" has been unveiled. It unveiled its "first-ever entirely deadstock collection" last month, which includes brand-new items made from extra fabric, reported "The Week".
"This is the start of a new sustainable era for the label's sourcing practices," claimed Bustle, as part of an effort "to cut their carbon footprint by at least 25% by 2030" .
Drew Afualo, a popular user on TikTok with over six million followers who has encountered criticism on the platform for his collaboration with Shein, stated that the issue is that "not everyone can afford to shop sustainably".
"Sustainable fashion is a privilege," Afualo wrote, recognizing the reality that for many consumers, the brand's quickness and affordability surpass any moral or ethical issues.
"Shein is soaring in popularity because people still refuse to grasp that cheap clothing comes at a very steep price to other humans and our planet," Aja Barber, the writer of "Consumed" . Currently the largest ultra-fast fashion store globally, its primary focus is gaining market share. And we're speeding toward a terrifying prospect". | BGNES