Fast-fashion retailer Shein takes a shine to New York

After flying low under the radar, a private Chinese fast-fashion retailer using AI and automated factories has just overtaken Amazon. Now we could be about to get a look under the hood.

Shein has quickly become the largest fast-fashion retailer by sales. Picture: Kathy Bloomgarden

A Chinese fast-fashion retailer that overtook Amazon as the most downloaded shopping app in America last year has revived plans for a $50 billion New York stock market listing in 2022.

Shein, pronounced She-in, is said to be working with advisers at Bank of America, Goldman Sachs and JP Morgan on the flotation. Shein was rumoured to have considered a New York listing two years ago, with Goldman Sachs linked to the process, but it withdrew plans amid market volatility and rising US-Chinese tensions.

A listing of Shein would force more transparency from the private company, which refuses to disclose sales data and has maintained such a low profile that it has only recently received attention from the retail industry.

Shein was founded by Chris Xu in 2008 and, while it does not sell clothes in China, it ships to 150 countries, with the US being its largest market.

The rapid global growth of the business is causing a problem for established online rivals, such as Asos and Boohoo, while Shein surpassed H&M and Zara in the United States last year to become the largest fast-fashion retailer by sales, according to Earnest, a data analytics company. Shein’s growth is thanks to its use of artificial intelligence, automated factories in Guangzhou and social media.

Shein was founded by Chris Xu in 2008 and, while it does not sell clothes in China, it ships to 150 countries, with the US being its largest market. The company is said to have made about 100 billion yuan insales last year and adds 6,000 new items a day to its website.

Reports suggest Xu is considering becoming a Singaporean citizen to ease the path to a New York listing amid China’s toughening stance on overseas flotations. Shein did not respond to requests for comment.

The Times