Shein exec says 'growth remains strong' amid tariff worries

Shein, known for its affordable product range, has reportedly seen its value slide as US President Donald Trump removed the duty-free exemption for low-value ecommerce products and increased tariffs on exports from China.

Bloomberg reported yesterday that Shein shareholders have pushed for a cut in the company’s valuation to about $30bn (£23.8bn).

This would be part of an effort to proceed with the company’s prospective IPO on the London Stock Exchange, the reports said. Shein was valued as high as $100bn (£79.3bn) in 2022 and $66bn in a 2023 funding round (£52.3bn).

“As I am writing this note to you, despite the recent challenges, our growth remains strong, driven by our ability to offer a diverse selection of fashion and lifestyle products at consistently affordable prices,” Tang’s letter reportedly said.

He added that Shein was investing in its supply chain and improved logistics.

An executive order by President Trump to remove the “de minimis” exemption was paused early in February after it caused logistics disruption.

The rule exempts packages under $800 delivered directly to customers from tariffs, allowing products to be sold at cheaper prices.

EU policymakers are also making efforts to reduce the flow of cheap goods into Europe.

Industry sources have told Retail Week that this is ultimately likely to lead to increased prices on Chinese ecommerce platforms.

Speaking at Retail Week x The Grocer Live last week, Shein’s head of strategic and corporate affairs in North America, the UK and Europe Peter Pernot-Day said that observers were wrong if they thought that Shein’s cheap prices were due to customs policy.

“I think there is a misperception that our pricing advantage and our speed advantage are derived from us dodging tax loopholes or avoiding duties or things of that nature, and I’m here to tell you that we do not rely on customs policy to be successful,” he said.