Shein CEO Sky Xu’s fortune fell by more than $15 billion — Fortune
Chinese fast-fashion online retailer Shein Global Holdings Ltd. plans to list in Hong Kong on Tuesday at a valuation slightly above a quarter of the $100 billion at which the company was valued in 2022. At the offering price, the fortune of Shein CEO Sky Xu, who owns 30% of the company, is estimated at about $8 billion, Fortune reports, citing the Bloomberg Billionaires Index.
Xu’s net worth had previously exceeded $23 billion, when Shein was valued higher than the parent companies of H&M and Zara. Thus, his wealth has decreased by more than $15 billion over four years.
Tariffs and competition
Xu, 43, founded Shein in 2012 together with three partners. They had previously worked at the same search marketing company and used that experience to develop an online retailer of inexpensive fashionable clothing. The company’s sales rose sharply during the COVID-19 pandemic.
More current news is available on the UA.News Telegram channel Telegram.
Revenue growth later slowed, according to data Shein disclosed in July ahead of the IPO. One of the company’s strategies was to avoid import taxes in the United States and Europe through small shipments. Last year, the Trump administration ended a key tariff exemption, while the European Union announced the introduction of a flat duty on small parcels.
Investor interest in AI
Sam Wyatt, an international equities portfolio manager at U Ethical Investors, believes that Shein missed a favorable moment for an initial public offering. According to him, e-commerce is now a less attractive topic for investors than artificial intelligence.
Sheng Lu, a professor at the University of Delaware, noted that the market situation is changing against Shein. In his view, artificial intelligence technologies are also helping competitors adapt more quickly to changes in consumer preferences. Shein previously sought to hold an IPO in New York and London, but the company faced scrutiny of its labor practices there. Management moved its global headquarters to Singapore, but still needed approval from Chinese regulators for the IPO.
