Author |Cat brother.
*|Big Cat True Detective Agency.
Recently, the U.S. House of Representatives sent a letter to fast fashion unicorn Shein.
The U.S. still has to review its relationship with China, of course, the main issue is still related to data privacy, although Shein has said earlier that the relevant data is stored in Microsoft and Amazon's "data centers and cloud services located in the United States", but the United States is still not reluctant. ①
Why?Because SHEIN is going public.
In November, there was a ** revelation that Shein had secretly submitted the form in the United StatesIt is ready to be listed on the New York Stock Exchange in the United States and can be traded as early as 2024
If the listing is successful, SHEIN will become one of the "most valuable Chinese concept stocks".
What is the value of it?It can be said that it is hot, but it can also be said that it is on a roller coaster.
Tianyan check information display,In 2013, SHEIN received $5 million in funding from JAFCO Asia, and by 2015, SHEIN was valued at RMB 1.5 billionSince then, SHEIN's valuation has gone all the way up.
During the entire epidemic, it was the peak of SHEIN's developmentThe valuation has risen from $5 billion in 2019 to $100 billion in 2022
What is the concept of this valuation?
Global non-listed unicornsSHEIN is second only to Zhang Yiming's ByteDance and Musk's SpaceX；In the field of fast fashion, it is more than the sum of H&M+ZARA;Compared with the market value of Chinese Internet companies at that time, it was second only to Tencent, Alibaba and Meituan.
However, by the time of May 2023, SHEIN's valuation,That's only $66 billion
By the time it came to the listing, the estimated valuation of ** was more than $90 billion, and it failed to catch up with the peak of $100 billion, but even soThis valuation is equivalent to more than 640 billion yuan
After all, valuation is valuation, and the specific value may need to be calculated after the real listing, and the value that investors vote for with money is real.
However, it is still unknown whether it can be listedBecause, the contradiction is too great
Shein is a mysterious unicorn.
Its biggest label is probably "China".
According to public information, the boss of SHEIN is Xu Yangtian, a post-80s generation born in Zibo, ShandongAt first, he appeared in the newspapers as Chris Xu, and later appeared on the Shein official website under the name Sky Xu
Shein is his entrepreneurial project, the predecessor was established in 2008, originally made wedding dresses, the gross profit is very high, and the profit is also very considerable, but later, the single category of wedding dresses is still a bit thin, and the direction of SHEIN's cross-border e-commerce has become **, and it will run faster.
Because it's cheap.
SHEIN's main and main product is a $10 top and $5 a pair of shorts, The low-price strategy will never go out of style, especially now that overseas users are basically the most sensitive consumers, so SHEIN is in the downturn of the global market when bankruptcy and store closure have become the mainstream.
In the United States alone, it has exceeded 30% of the market share, the body of the Americans is still very honest.
Bigger and stronger, in fact, it is not a big problem, but it is not easy to go public.
Chinese companies listing in the United States are facing investigations from both China and the United States.
According to the new regulations of the regulatory authorities at the beginning of 2023, domestic enterprises are subject to filing management when listing overseas, and enterprises need to submit various materials such as filing reports, legal opinions, data security risks, and shareholder information to the CSRC.
But, so far,On the ** of the China Securities Regulatory Commission, there has not yet been a relevant filing, and the China Securities Regulatory Commission has also stated that it will give feedback on the issue of SHEIN's listing in the United States.
In the United States, the House of Representatives Energy and Commerce Committee and other institutions will also conduct investigations into Chinese companies that are planning to go public, which also includes the privacy data of this investigation.
In the face of double pressure, SHEIN "tears the label" by itself.
SHEIN positions itself as a global companyThe first step was to move the headquarters to Singapore, and sheincom's main site link has been automatically redirected to Singapore.
Tianyancha's information shows that SHEIN's former financing entity, Nanjing Lingtian, has been cancelled in 2021 and replaced by the same yearSingapore-registered Roadget Business Pteltd
Then,Roadget has become the core enterprise of SHEIN: It is the operating company of the global Shein APP;SHEIN's trademark and brand assets were acquired through the transfer;He is the actual controller of SHEIN-related companies in China.
In addition, the use of registration information @sheincom mailbox company, as well as Guangzhou Hongyi, the actual controller is Wonderflow Logistics, which is registered in the Hong Kong Special Administrative Region, and its subsidiaries are warehousing companies and **chain companies associated with SHEIN.
And earlier,Xu Yangtian is also hidden in the equity relationship and executive list of related companies
Among these companies, Xu Yangtian has either stepped down, or the company has been deregistered, for nowBeijing Xishang Company, the only company that has not yet been deregistered, does not have any equity relationship with SHEIN
Reuters has reported,Xu Yangtian has changed his nationality from China to Singapore, but at present, there is no comment on this matter, Forbes' rich list, still lists it as Chinese, but can work at the headquarters,Have at least residency in Singapore
As the founder and CEO, Xu Yangtian, who is mostly known as Sky Xu, has not seen his true face of Lushan, and there is a saying that even Shein employees may not recognize him when they see him in the headquarters building.
SHEIN's "façade officer" was dug by SHEIN from SoftBank, Son's former deputy Marcelo CrowHe was promoted from head of Latin America to vice chairman of the group, responsible for SHEIN's global business.
SHEIN's actions are also very fast, acquiring British brands, reaching long-term agreements with American brands, cooperating with Australian designers to produce, plus the app is not open to users in China, it can be said to be very global.
However, there is a label that may not be easy to removeThat is the Chinese ** chain.
What does fast fashion rely on?Volume "New Speed".
In the past, ZARA's new twice a week was already quite fast, but SHEIN was faster, new every day, and ZRA used to have more than 20,000 new products every year, as a resultSHEIN has more than 6,000 new products in a week, and it can catch up with ZARA in half a week.
How can you guarantee it?That is to put the ** chain in China.
Before moving to Singapore, SHEIN's headquarters were in GuangzhouAfter all, Guangzhou's garment manufacturing industry is mature, cross-border e-commerce is developed, and the foundation has been laid.
Later, SHEIN's business expanded from clothing to small commodities, and it also opened the company to Yiwu, and the dividends were full.
However, this does not mean that SHEIN will always rely on Made in China, and its ** chain has also shown signs of transfer.
In SHEIN's "Global" territory, there are several key nodesFor example, the United States, Brazil, Ireland and South China.
South China is the place where SHEIN started and the core of the ** chain, which is undoubted, while overseas, the United States dominates North America, Brazil dominates Latin America, and Ireland is the core of SHEIN's operations in the Middle East, Africa and Europe.
Among them, Brazil is one of the regions where SHEIN is deeply engaged in localization, and an important symbol of localization is to build an overseas "local ** chain", which is also the main thing that SHEIN's "façade" Crow focuses on.
According to the information on its official website, SHEIN's expectations are:
By the end of 2026, 85% of sales will come from local manufacturers and merchants, and Brazil will become a manufacturing and export hub for the whole of Latin America.
The realization of the localization of the Latin American ** chain,It means that the export to Latin America through SHEIN may be greatly discounted.
There are many related questions, and the answers can be given either by the securities regulatory commissions of China and the United States, or by the official documents or prospectuses of SHEIN.
Unless, SHEIN finally chooses not to go public.
References: Chair of Powerful House Committee Pushes Shein about Data Protections, China Relationship, CNBC
Tianyancha app: www.tianyancha.com
SheinGroup Official**: www.sheingroup.com
Trademark Office of the State Intellectual Property Office, China Trademark Network: SBJcnipa.gov.cn
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