Chinese fast-fashion platform Shein is expected to launch its initial public offering on the Hong Kong stock exchange, likely next week, in a move to attract new investors and overhaul its supply chain. Beyond raising capital, the stock market listing will deliver strategic, reputational, and regulatory benefits for major Spanish fashion companies.
Following its debut, Shein will be required to abandon the financial opacity it has maintained since its founding in 2008. The company will have to regularly publish audited financial reports, business plans, and corporate strategies, offering unprecedented visibility to industry rivals.
Francesc Rufas, a professor at EAE Business School in Spain, told news agency EFE that these detailed corporate disclosures will prove highly relevant for Spanish retail multinationals such as Inditex, Mango, and Tendam.
Rufas explained that transparent data will finally allow competitors like Inditex, the parent company of fashion brands Zara, Pull&Bear, and Massimo Dutti, to confirm that their profitability is five times higher than that of the Chinese online seller. This financial insight will give established European retailers greater room for strategic maneuverability.
Profit margins and global market ranking
Shein operates across approximately 160 countries and ranked as the third largest global fashion retailer in 2024, behind American sportswear giant Nike and German brand Adidas. However, its rapid sales growth contrasts with a modest net profit margin of 3.3 percent on sales. By comparison, Spanish fashion group Inditex recorded a net profit margin of 16.4 percent.
For unlisted Spanish clothing retailers Mango and Tendam, Rufas noted that the listing will carry significant reputational and regulatory weight. He said the public flotation will intensify pressure on Spanish and European regulators to hold Chinese e-commerce platforms to the same compliance standards required of local retailers.
Financial research firm Bloomberg Intelligence estimates that Shein's current financial position supports a pre-IPO valuation between 22 billion dollars and 25 billion dollars, while news agency reports suggest the company could seek up to 27 billion dollars. The valuation marks a drop of up to 78 percent from its peak valuation estimate of 100 billion dollars in 2022. Rufas said Shein needs the listing because early investors wish to exit, requiring fresh capital to prevent equity loss.
Logistics expansion and regulatory challenges
Proceeds from the share sale will fund an expansion of Shein's European logistics network. Building local warehousing will shorten customer delivery times and reduce reliance on direct air shipments from China, which Rufas identified as the company's main regulatory vulnerability. He added that public company status will also facilitate potential corporate acquisitions and strategic alliances.
The public listing is expected to bolster Shein's regulatory standing at a time of heightened scrutiny in Europe and the United States. Since July 1, the European Union has imposed a customs duty of 3 euros per tariff category on shipments valued below 150 euros. Meanwhile, the United States has eliminated tariff exemptions on low-value overseas package imports.
E-commerce growth and market position in Spain
Shein has established itself as the third largest e-commerce platform in Spain. According to data from specialized research platform eCommerce Database, Shein is projected to record a gross merchandise value of 3.688 billion euros in Spain for 2025, representing an 80 percent year-on-year increase.
The Chinese platform trails only Amazon, which leads the Spanish market with 11.647 billion euros in gross merchandise value, and AliExpress at 4.072 billion euros. In contrast, Spanish department store chain El Corte Inglés registered online sales of 1.5 billion euros, less than half of Shein's total. Shein aims to eventually surpass AliExpress in the Spanish market.
Figures provided by EAE Business School to EFE show that product diversification has enabled Shein to become the leading online apparel retailer in Spain, outperforming both Zara and Amazon. Looking ahead, Rufas predicted that Shein will likely open permanent physical stores on a gradual basis. He noted that establishing local warehouses to boost regional inventory is the natural precursor to launching physical retail outlets beyond its temporary pop-up shops in European and American cities.
