The Shein Group, developing the popular e-commerce platform, goes ahead with preparatory work on a possible initial public offer in Hong Kong; after a long-term attempt by the giant fast fashion to enter the stock market, as failed attempts to import into the New York and London Stock Exchanges have preceded.
THE Sky Xu, founder and CEO of Shein, who founded the e-commerce company in China in 2012, leads the big venture—which could lead to valuation of the company up to $50 billion- At the same time, it faces challenges in Europe.
After a specific fee of EUR 3 in small packages from non-EU countries; which mainly affects trade with Chinese platforms, at the end of last week came and a temporary prohibition on the disposal of goods under the mark of Lacoste, according to a French court.
In accordance with the Decision published 9 July, it was found that possibility of tampering with products «monkey» that mimic the characteristic crocodile signal.
Also, because the Paris judge saw a clear risk of confusion for consumers, he awarded Lacoste a provisional amount 110,000 euros in compensation.
IPO and Moderate Xu
At the same time preparations for the IPO in Hong Kong continue, with the debate focusing on valuation. Shein had been under pressure from the shareholders reduce its valuation to around $30 billion, although it had previously been valued at more than three times this amount, as market players previously reported.
Shein's entry into the stock market expected to bring Xu to the fore, a low-ton leader who last performed at an event in February, where he spoke about Shein's investments in her supply chain, which is concentrated in thousands of clothing factories in the city of Guangzhou, southern China.
Xu was born in 1984 in Zibo, a town in the eastern Shandong province of China and according to Chinese media his mother was a worker in a clothing factory.
For his English name, originally he chose Chris – according to Shein’s first sustainability report, published in 2022 – But later he decided it wasn't distinct enough and changed it to Sky, which comes from one of the characters in his Chinese name, Xu Yangtian.
A source of the industry who has known him for years described him as patient, moderate and realistic, according to Reuters.
Despite Shein's growing global recognition, Xu pursued the company's entry into the stock exchange in order to secure funding and to face competition in particular from Pinduoduo Temu.
Shein's original plan to enter the stock market in the US derailed two years ago amid control the supply chain and its working practices. Also the application for admission to London was abandoned as Chinese regulatory authorities refused to give their approval.
Shein moved her seat to Singapore in 2021, but econtinues to be subject to Chinese CSRC supervision, because the regulatory authority requires all companies with substantial links to China, even those not formed in the country, to go through its assessment before their introduction anywhere in the world.
Having spent years underestimating its Chinese roots and promoting its activity as a global company, Shein changed course after submitting an application for Hong Kong's original public offer Last year. Furthermore, Xu is committed to investing more resources in the southern Chinese shopping centre of Guangdong Province, where an extensive network of manufacturers producing extremely low cost clothing is located.
