6.5 billion valuation was a far cry from the nearly US$100 billion valuation Shein commanded at the peak of the private-market boom in 2022. The company plans to use 40 per cent of the IPO proceeds to enhance its technology capabilities and another 40 per cent to boost brand awareness and strengthen its global presence, with the remainder going toward corporate responsibility initiatives and general corporate purposes.  The de minimis scrape  Few developments illustrate Shein’s changing economics more clearly than the erosion of the de minimis trade exemptions that once supported its cross-border business model. More than 90 per cent of Shein’s 2025 revenue came from goods held in central warehouses in China. The business was built to move small parcels from those warehouses to individual customers, clearing customs one order at a time under duty exemptions designed for gifts and samples. That model is becoming harder to maintain. Last year, the US ended the de minimis duty exemption for e-commerce shipments under $800, leaving China-origin goods sold by Shein or through its marketplace exposed to import tariffs the company puts at between 10 and 87.5 per cent. Europe is moving in the same direction. The EU has tightened the rules governing low-value e-commerce imports, imposing additional charges on affected shipments while preparing further reforms to how such goods enter the bloc. In response, Shein holds more stock locally, ships in bulk clear a container once rather than a million parcels a day. Shein now runs 18 warehouses in Europe and has told investors it will raise some prices, expand local fulfilment and strengthen trade compliance. “Shein still has impressive competencies, especially its data-driven product development cycle,” said Jacob Cooke, co-founder and CEO of WPIC Marketing + Technologies. “Rapid product iteration paired with cheap manufacturing allowed Shein to crank out new fashion faster than traditional competitors. But higher logistics costs have forced Shein to raise prices, hurting demand for its products.” Losing the appeal of hypergrowth The slowing of Shein’s business makes that question more urgent. Revenue growth has decelerated sharply since 2023. Turnover grew 41.1 per cent that year, followed by 20.7 per cent growth in 2024 and around 8 per cent in 2025, when revenue reached US$41.8 billion. The slowdown continued into 2026. Revenue rose just 1.1 per cent year on year in the first quarter, to US$9.05 billion. Profitability has weakened even more dramatically. Net income fell 38.7 per cent in 2025 to around US$2.06 billion, while the company swung to a US$99 million loss in the first quarter of 2026, compared with a US$395 million profit a year earlier. Shein attributed much of the quarterly loss to a US$328 million fair-value charge related to convertible redeemable preferred shares. But even after accounting for that exceptional item, the broader direction of travel is difficult to ignore. The company has warned that operating margins will remain under pressure as customs duties, tariffs, logistics costs and new trade-related fees increase the cost of serving international markets. That creates a challenge at the heart of the investment case. The concern is that Shein will have to rely more on bulk imports and local warehousing, turning an asset-light business into something more capital-intensive akin to conventional retail. The missed golden window The timing of the IPO has also become part of the problem. William Ma of GROW Investment Group told CNBC that Shein had missed its “golden window” to go public. That assessment is increasingly difficult to dismiss. Shein spent years trying to reach the public market. It initially filed confidentially for a New York listing in 2023 but encountered political opposition and congressional scrutiny. It then turned to London, where its plans became entangled in questions surrounding its China-based supply chain and regulatory approvals. Hong Kong eventually emerged as the viable destination after Chinese regulators approved the listing process in July. By the time Shein finally reached the market, however, the company was no longer the same hypergrowth story it had been during the pandemic-era e-commerce boom. Its valuation had fallen dramatically. Revenue growth had slowed. Trade rules had become more hostile to its cross-border model. And regulators in several major markets were examining aspects of its business practices. The result was a valuation gap between what Shein had once been worth privately and what public investors were willing to pay for it. The diversification answer  Shein’s response is increasingly to become less dependent on its original ultra-cheap fast-fashion model. The company has expanded its third-party marketplace, giving other brands and merchants access to its customer base and digital infrastructure. It has also broadened its portfolio through acquisitions and investments, including Missguided, a stake in Forever 21 and the acquisition of Everlane in this year. Shein reportedly acquired the US-based apparel brand for around US$100 million, according to reports, compared with a much higher valuation Everlane commanded during the height of the e-commerce boom. Shein has global digital infrastructure, an enormous customer base and sophisticated supply-chain capabilities. Acquiring established brands gives it access to new price points, customer segments and brand identities that its core business may struggle to reach. That makes Shein’s next phase more complicated. The question now is whether it can evolve into a broader global commerce platform without sacrificing the efficiency and speed that powered its success. Further reading: Why Shein embraced its Chinese identity ahead of market debut.