Fast fashion giant Shein is reportedly urging its top Chinese suppliers to set up production in Vietnam, offering 15%-30% higher procurement prices and guaranteed larger orders.
In recent months, these efforts have accelerated to counter the impact of President Donald Trump’s new US tariffs on Chinese goods, including removing the “de minimis” rule, which previously allowed duty-free imports of low-value packages from China.
The change threatens the business models of Shein and Temu, both of which rely on selling low-cost fashion items globally and in the US.
Shein previously sought an IPO worth $80 billion to $90 billion in the US but is now considering listing in London. Private trades in late 2023 valued the company closer to $50 billion.