Donald Tang, Shein’s Executive Chairman Donald Tang said the fast fashion firm will remain highly competitive so long as Trump administration imposes the new tariffs on “equally”.
In an interview with CNBC, he said that “affordability was a major anchor” at the World Economic Forum, which took place in Davos in Switzerland. He added, “it’s all about it. It’s value for money.”
Shein shares are currently not available to the public for trading.
Shein is resilient to a tariff increase of 10% on China
During his 2024 presidential campaign, Donald Trump, the Republican candidate for president of the United States has threatened to increase tariffs on Chinese products by up to 60%.
He has now changed his mind and will only raise the rates by 10%, which is more in line to what other countries are planning.
According to Donald Tang, executive chairman of And Shein, the company will remain known for the wide variety of cheap clothes it offers as long as China is not treated in a discriminatory manner or punished by the US due to the anticipated increase in tariffs.
According to a report released by the Committee for a Responsible Federal Budget, Trump’s tariff plan may raise up to $1.5 trillion in fiscal 2035.
Shein will be required to increase prices by 2025.
The Chairman Tang did not comment on whether prices could rise after Trump’s tariffs are implemented.
He said that Shein would remain competitive until the US announced higher tariffs for China in comparison to other regions.
Shein has customers in over 150 countries, with offices in London and Singapore.
Fast fashion has gained popularity amongst young consumers, especially due to the wide range of items it offers, from clothing to homewares, accessories and beauty products.
Shein is expected to generate revenue of about $50 billion by 2024, thanks in part to its global presence.
Shein wants to IPO for what reasons?
Shein once thought about listing shares of its company in the US.
But, the negative sentiment in America towards companies based or founded in China led it to abandon those plans. Instead, they shifted their focus on a London listing.
In an interview with CNBC, the company’s executive chairman Donald Tang did not elaborate on the timeline. He said that “being a publicly traded company is a very universal mechanism of accountability.”
Shein is known for its solid supply chain that has been built in Guangzhou. The network of more than 3,000 vendors allows for more efficient distribution and production.
Shein used to be estimated as a company worth $100 billion.
By the end of 2024, it is expected that the value will have dropped to $66 billion due to controversies surrounding labor practices, intellectual properties, and environmental impacts.
The post Trump’s tariffs on Shein Products could make them more expensive This post may change as new information unfolds
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