Shein chairman says growth ‘remains strong’ despite tariff woes
This change has raised concerns about Shein’s business model, with some analysts suggesting that it may need to increase prices as a result
Shein’s executive chairman, Donald Tang, has reportedly reassured shareholders that the company’s growth “remains strong”, even after the US removed duty-free status for low-value ecommerce packages from China and increased tariffs, according to Reuters.
This change has raised concerns about Shein’s business model, with some analysts suggesting that both Shein and its rival Temu (owned by PDD Holdings) may need to increase prices as a result.
It is understood that in a letter to investors on Monday (17 February) he reassured investors that it will stay ahead of the competition in the discount clothing market, particularly in its biggest market – the US.
Tang included in the letter: “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.”
Shein’s executive chairman also expressed his support for de minimis reform in his letter, a position he initially announced in July 2023.
He added: “I have long advocated for de minimis reform that prioritises American consumers – because at Shein, our focus is on customers, not customs policy.”
In addition, Tang’s letter revealed that Shein is investing in supply chain advancements to boost efficiency and responsiveness, as well as better logistics.
The letter did not, however, disclose any financial data or growth figures.
Trump’s executive order ended a rule that allowed American shoppers to avoid paying customs on most Shein purchases. This caused delays as packages piled up at airports, but Trump temporarily reinstated the rule and put the Commerce Department in charge of finding a workable solution.
