On March 14, Bloomberg reported that Shein executive chairman Donald Tang said,The company remains committed to an initial public offering (IPO) despite the onslaught of Trump's campaign to rebalance global trade.Donald Tang said the listing would help win public trust and increase Shein's transparency.
A few weeks ago an investor said,Shein should cut its valuation by more than two-thirds to about $30 billion.Donald Tang declined to comment on Shein's valuation.
As it seeks to convince investors to back its IPO,Shein is facing the challenge of the Trump administration's plan to cancel China's duty-free import policy for small commodities.Packages worth less than $800 have long been exempt from tariffs. If the elimination of the minimum exemption causes Shein to raise prices, American consumers accustomed to buying $8 T-shirts and $12 dresses may be deterred.
Donald Tang said: "We want to make sure that no matter what storm we face, consumers are not impacted.He added that the company has yet to see any signs of a slowdown in the U.S. market. He said,Shein will try to reduce costs by centrally packaging more products and reducing waste.Donald Tang also said that hoarding goods in the United States may be counterproductive, causing companies to accumulate unsaleable inventory.
“It becomes a burden because you have to warehouse it, you have to finance it, you have to figure out how to dispose of it. It’s not good for the planet if it has to end up in a landfill,” he said.
Donald Tang said Shein would comply with the new regulations and "find ways" to protect consumers."We believe this is not an issue for us," he said.
Shein was valued at US$66 billion in a 2023 round of financing, and its valuation in 2022 was as high as US$100 billion.In June this year, the company submitted confidential listing documents to the London Stock Exchange.
Donald Tang said in an interview: “By going public, we can more effectively win the greatest degree of public trust.This is crucial to company development."