Shein’s executive chairman Donald Tang says the fast fashion company will remain super competitive as long as the Trump administration imposes new tariffs “equally”.
He commented in an interview with CNBC at the World Economic Forum in Davos, Switzerland, adding “affordability is a big anchor … it’s the whole package of it, it’s a value for your money.”
Shein’s shares are not currently available for the public to trade.
Shein can weather a 10% increase in tariffs on China
Republican leader Donald Trump threatened to raise tariffs on Chinese goods by as much as 60% during his presidential campaign in 2024.
But he has since had a change of heart and is now expected to raise them by 10% only – more in line with the hikes scheduled for other countries.
And Shein will continue to be known for its huge variety of ultra-cheap clothes as long as China doesn’t receive discriminatory or punitive treatment in terms of the expected increase in tariffs from the US, according to executive chairman Donald Tang.
Trump’s latest tariff plan could raise to $1.5 trillion through fiscal 2035 on a conventional basis, as per a recent report by the Committee for a Responsible Federal Budget.
Will Shein have to raise prices in 2025?
Chairman Tang, however, refrained from commenting on the possibility of raising prices after Trump’s proposed tariffs go into effect.
All he said was Shein will remain competitive unless the US announces higher tariffs on China compared to other regions.
Shein currently serves customers located in more than 150 countries and has offices in London, Singapore, and the United States.
The fast fashion company has rapidly gained popularity, particularly among young shoppers, due to its extensive selection of products, ranging from apparel to accessories, home goods, and even beauty items.
Shein’s global market presence is estimated to have helped it generate about $50 billion in revenue in 2024.
Why does Shein want to IPO?
Shein had once considered listing its shares in the US.
However, more negative political sentiment on China-based or born companies in the United States made it scrap those plans and shift its focus to a London listing instead.
The company executive chairman Donald Tang refrained from offering more color on the timeline but said “Being a public company embraces the very universal and unique mechanism for accountability” in his interview with CNBC.
Note that Shein has built a solid supply chain in Guangzhou, China. Its network comprises more than 3,000 suppliers, allowing for more efficient production as well as distribution of its products.
Shein was once estimated to be a $100 billion company.
But controversies related to labor practices, intellectual property, and environmental impact are expected to have shrunk its valuation to about $66 billion as of late 2024.
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