By Helen Reid LONDON (Reuters) - Fast-fashion retailer Shein's executive chairman Donald Tang told investors in a letter on Monday that "growth remains strong" despite the United States ending duty-free treatment of low-value ecommerce packages from China and hiking tariffs. Shein is working towards an initial public offering in London, but U.S.
President Donald Trump's decision to end the "de minimis" duty-free provision for imports from China worth less than $800 triggered concerns about its business model, with some analysts saying Shein and rival PDD Holdings-owned Temu would have to raise prices. The letter, seen by Reuters, seemed aimed at reassuring investors that Shein, known for $10 dresses and $15 sneakers, will maintain its edge in a fiercely competitive environment for discount apparel in the U.S.
, its biggest market. "As I am writing this note to you, despite the recent challenges, our growth remains strong, driven by our ability to offer a diverse selection of fashion and lifestyle products at consistently affordable prices," Tang wrote. Shein is investing in "supply chain advancements to boost efficiency and responsiveness", as well as better logistics "to ensure faster, more reliable deliveries", he said in the letter.
Shein did not immediately reply to a request for comment. The letter gave no growth figures or financial information. Shein investors include Sequoia Capital, General Atlantic, Declaration Partners, Brookfield, and Claure Group, according to Pit.
