Shein is preparing for a Hong Kong IPO at a valuation of roughly $25 billion—down from $100 billion in 2022—due to tariff pressures, regulatory scrutiny, intense market competition, and poor timing (rival Chinese consumer brands and AI firms captured investor appetite instead). Founder Xu Sky's net worth is projected to fall from $23 billion to $8 billion. The company's strategy of shipping small parcels to dodge import taxes has been undermined by Trump-era policy changes and EU tariffs. Competitors are using AI to respond faster to consumer trends, while Shein faces continued scrutiny over labor practices in the US and UK markets.