Xu Yangtian, founder and CEO of Chinese fast-fashion giant Shein, made his first public appearance, stepping out from years of anonymity. The reclusive executive, who had distanced the company from China by relocating headquarters to Singapore, suddenly emphasized the company's Chinese roots and announced a major investment plan as IPO approval hangs in the balance.
According to the Financial Times and BBC on the 24th (local time), Xu attended a business conference in China's Guangdong Province the previous day, stating, "Guangdong is where Shein's roots are and where our growth journey began." He added, "Based on Guangdong's industrial development, I am confident we can make 'Made in Guangdong' the standard for the global fashion industry."
Founded in Nanjing in eastern China in 2012, Shein later established its supply chain base in Guangzhou, Guangdong Province, and currently works with approximately 10,000 partner manufacturers in the region, though the company has long emphasized its global identity.
The appearance is considered highly unusual given Xu's well-known aversion to public exposure. U.S. business magazine Fortune previously reported that "Xu Yangtian keeps such a low profile that even company employees wouldn't recognize him."
Analysts suggest his public emergence is closely tied to the company's recent IPO struggles. Shein had maintained a strategy of distancing itself from China, calculating that a Chinese corporate image could hinder business expansion in its key markets of the United States and Europe. In 2021, preparing for a New York listing, the company took the bold step of relocating its headquarters to Singapore.
However, this move reportedly drew resentment from Chinese regulators. Combined with allegations of forced labor in its supply chain and escalating U.S.-China tensions, the U.S. listing fell through. Subsequent attempts to list in London and Hong Kong also stalled due to delayed approval from Chinese authorities. According to Bloomberg, the company's valuation, once as high as $100 billion, has dropped to $30 billion.
Ultimately, the closer embrace of China is interpreted as a strategic move to repair strained relations with authorities and secure IPO approval.
Appearing conscious of this dynamic, Xu emphasized, "Shein's growth today would not have been possible without the support of the Guangdong Provincial Party Committee and the Guangdong Provincial Government." He announced plans to invest 10 billion yuan (approximately $1.4 billion) in Guangdong's supply chain over the next three years.