Pointers at Glance
- According to the report from Bloomberg, Chinese fast-fashion giant Shein hopes to make an initial public offering in the United States as soon as 2024 begins.
- Critics still take issue with Shein garments’ short-term wearability, and the review has spread to fast fashion more widely.
The Bloomberg report made people familiar with the matter: Chinese fast-fashion mammoth Shein hopes to make an initial public offering in the United States as soon as 2024 begins.
As per the report, it faces environmental, social, and governance, or ESG, enterprises that could be an obstacle to an IPO. According to Reuters, They had sought a 2022 IPO in the US preliminarily.
Shein, which has a $100 billion valuation, has drawn scrutiny for its cheap product line erected on a fast and prolific production chain. An inquiry by Swiss watchdog group Public Eye said some of Shein’s manufacturers have been subjecting workers to hazardous conditions and 75-hour workweeks.
As per a Bloomberg report, while these enterprises have not deterred large investors like Sequoia Capital China, IDG Capital, and Tiger Global Management, recent executive moves within Shein appear to concentrate on improving their ESG appearance in preparation for a public offering.
Shein has not immediately responded to CNBC’s request for comment.
Critics still take issue with Shein garments’ short-term wearability, and the criticism has spread to fast fashion more broadly. A World Bank report of 2019 stated that the annual number of new clothes produced had doubled from the 50 billion made in 2000.
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