Will Shein’s brand health tarnish its IPO ambitions?
Shein’s corporate reputation needs improving for the business to successfully IPO, say retail analysts.
Shein, the fast-growing fast fashion brand, has confidentially filed for a London IPO following a political backlash over its attempts to achieve a public listing in America.
In what would be London’s biggest initial public offering in a decade, the online retailer could expect to be valued at around £50bn, according to Bloomberg. But the IPO is by no means guaranteed and is threatened by public criticism of the Chinese-founded company’s business model and working practices.
Shein’s upward growth curve has been staggering. It doubled its profits to more than $2bn (£1.6bn) last year, on sales of around $45bn (£35.5bn), according to information shared with the Financial Times. Having moved its headquarters to Singapore, it is now looking to diversify its revenue streams beyond fast fashion and drive up customer loyalty.
