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Shein's €45B valuation fuels global dominance amid EU regulatory heat

From Guangdong to global dominance, Shein's data-driven empire faces its toughest test yet. Will regulators or IPO dreams define its next chapter?

The image shows a clothing store filled with lots of clothes on display, with mannequins wearing...
The image shows a clothing store filled with lots of clothes on display, with mannequins wearing dresses hung on hangers, boards with text, lights on the ceiling, and other objects on the floor. The store appears to be a fashion outlet, as indicated by the text on the boards.

Shein's €45B valuation fuels global dominance amid EU regulatory heat

Fast-fashion giant Shein has grown into one of the world's largest online retailers, operating in over 160 countries. In 2025, its export value surpassed 100 billion yuan (€11.7 billion), cementing its place among the top three global fashion sellers. The company now faces both market success and increasing regulatory challenges in Europe.

Shein's rise stems from its digital and flexible supply chain, centred in Guangdong province. This model, blending manufacturing with real-time data, has become the backbone of its competitive strength. By 2025, the company was valued at 365 billion yuan (€45 billion), ranking ninth among the world's most valuable startups.

Founder Xu Yangtian recently spoke at a Chinese business conference, highlighting Shein's global reach. Yet, its expansion has not gone unchecked. The European Commission launched formal proceedings under the Digital Services Act, examining concerns over childlike sex dolls and potentially addictive design features on its platform.

Despite these hurdles, Shein is reportedly weighing a public listing in London or Hong Kong. The move would mark another step in its rapid growth from a regional player to a dominant force in online fashion retail.

Shein's export-driven model has propelled it into the top tier of global fashion retailers. However, regulatory scrutiny in Europe could shape its next phase of expansion. A potential stock market debut may further define its future trajectory.

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