HONG KONG – Shein has finally won long-awaited Chinese regulatory approval for its planned Hong Kong listing, but slowing business growth threatens to weigh on the valuation it can command in the initial public offering (IPO).
The fast-fashion retailer’s global web traffic, app downloads and US sales have either stagnated or declined further in 2026, according to a Bloomberg analysis of data from multiple retail-tracking firms. While the slowdown has been sector-wide, with e-commerce rivals like PDD Holdings-owned Temu and Amazon.com also seeing weaker consumer engagement, the trend raises questions about the sustainability of Shein’s cheap and trendy business model.
Shein’s global web traffic growth slowed from more than 60 per cent year-on-year in the second half of 2025 to about 30 per cent earlier in 2026, before easing to single digits in June, according to Similarweb. Worldwide app downloads declined in most of the 12 months through May, falling by as much as about 30 per cent year-on-year at their steepest, according to market researcher Apptopia.
US sales fell for most of the 12 months through June, according to data compiled by Bloomberg Second Measure, which analyses credit and debit card transactions in the country. They saw a 13 per cent drop in June from the previous year.
Consumer enthusiasm for online shopping has cooled as inflation and higher fuel costs push up retail prices. US household spending during this year’s Amazon Prime Day in June dropped 16 per cent as brands and merchants struggled to offer steep discounts while contending with higher costs and continued tariff uncertainty.
Shein has also been contending with intensifying competition from Temu in key markets including the United States and Europe while regulators have stepped up scrutiny of the retailer’s operations.
Temu posted year-on-year US sales declines in many of the 12 months through June, though it returned to growth from April to June, the Bloomberg Second Measure data show. Amazon remained more resilient, posting mostly high-single-digit to double-digit gains, according to the data. Downloads also fell overall for Temu and Amazon in the period, according to Apptopia.
Shein and PDD didn’t immediately respond to requests for comment on the data. Amazon didn’t immediately comment on the data.
IPO plans
The softer growth could add pressure on Shein to accept a lower valuation in its long-awaited IPO. The company is seeking to list in Hong Kong as soon as August after securing approval from China’s securities regulator and may seek to raise about US$2 billion to US$3 billion (S$2.6 billion-S$3.9 billion) in the offering, Bloomberg reported on July 13. The final amount will depend on the valuation and feedback from investors.
Bloomberg reported in February that investors were pushing for a valuation of about US$30 billion, down from US$66 billion in a 2023 funding round and as much as US$100 billion in 2022.
Shein plans to sell up to 341.6 million H shares in its Hong Kong offering, according to a statement from the China Securities Regulatory Commission last week.
