SHEIN回国谋上市？行业竞争困局仍难解

Core Viewpoint - SHEIN, a leading player in the cross-border fast fashion sector, has faced significant challenges in its IPO journey since 2020, including regulatory hurdles and competitive pressures, prompting a potential return to China to facilitate its listing process [1][15][17] Group 1: Company Structure and Regulatory Challenges - SHEIN's complex ownership structure, initially designed for overseas listing, has become a barrier due to tightened regulations, with a significant portion of its operations and assets being based in China [3][4] - The implementation of the "Management Measures for the Issuance of Securities and Listing by Domestic Enterprises Overseas" in March 2023 emphasizes the importance of substance over form, which may hinder SHEIN's ability to meet compliance requirements for overseas listings [3][4] - Regulatory scrutiny has intensified, with the SEC and EU raising concerns about SHEIN's corporate structure and potential tax evasion, complicating its plans for a Singapore listing [4][12] Group 2: Tax Compliance and Financial Performance - SHEIN's initial move to Singapore was motivated by favorable tax rates, but the shift has now become a liability in terms of compliance and potential delays in its IPO process [6][7] - The company has seen a significant slowdown in revenue growth, with a 23% increase in H1 2024 and net profits dropping over 70%, leading to a decrease in valuation from over $100 billion to approximately $50 billion [10][12] - Tax issues have been highlighted as a major concern, with 37% of Hong Kong-listed Chinese companies facing inquiries related to tax compliance, which could further delay SHEIN's IPO [7][13] Group 3: Competitive Landscape - SHEIN faces fierce competition from both traditional fast fashion brands like ZARA and H&M, which are enhancing their digital capabilities, and emerging brands focusing on sustainable fashion [8][14] - The rise of competitors such as TEMU, which is aggressively targeting the same supplier base, has strained SHEIN's supply chain and reduced its competitive edge [10][14] - Global trade protectionism and regulatory changes have increased operational costs, with the U.S. canceling tax exemptions on cross-border packages and the EU imposing new taxes, further complicating SHEIN's market position [9][13] Group 4: Future Outlook and Strategic Challenges - The potential return to China is seen as a way to address compliance issues, but it does not resolve the underlying competitive challenges SHEIN faces in the fast fashion industry [8][15] - The company must improve supplier relationships, product quality, and brand image to regain market share and investor confidence amid a rapidly changing retail landscape [10][15] - SHEIN's future trajectory will depend on its ability to navigate regulatory complexities and adapt to evolving consumer preferences, particularly in the context of increasing demand for sustainable products [12][17]