Chinese fashion company Shein eyes IPO in 2024

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Chinese fast fashion giant Shein plans to make an initial public offering (IPO) in the United States soon – possibly by 2024, according to media reports on Thursday (July 14).

This comes as environmental, social and governance (ESG) responsibilities are growing concerns, which could create obstacles, CNBC reported.

Shein has received criticism for its inexpensive product line, which has been built on a fast and prolific production line – with an investigation by Public Eye, a Swiss watchdog group, claiming that some of the company’s manufacturers have put employed in hazardous conditions, such as 75 one-hour work weeks.

The company’s critics still have a problem with the short-term wearability of Shein clothing, though Shein isn’t the only fast-fashion retailer to face such criticism. In 2019, a World Bank report indicated that the annual number of new garments produced had doubled from the 50 million produced in 2000.

The worries haven’t deterred everyone — some, like Sequoia Capital China, IDG Capital and Tiger Global Management, are still on board, according to the report. However, the company’s recent management moves appear to be focused on other things, such as bolstering their ESG appearance as they prepare to go public.

In April, it was reported that the company was considering a funding round that would value the company at $100 billion, PYMNTS reported at the time.

Read more: Chinese e-commerce startup Shein raises $100 billion worth

The retailer had been talking with potential investors like General Atlantic about raising around $1 billion. Shein had been talking about his goals for the past year, although at the time he had no plans for an IPO.

The company’s success is due to many factors, including mastery of the supply chain, data-driven apparel design, and the tax loopholes it uses in the United States and China, which have produced during a trade war.

Last year, Shein also outgrew Amazon in terms of shopping app downloads in US stores.

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