New Delhi, Aug. 25 -- Only a few years ago Shein looked unstoppable. Its novel business model-using oodles of data and clever algorithms to spot fashion trends and generate new designs, which its network of Chinese suppliers stitch for a pittance-proved a hit in Western markets. Americans in particular spent endless hours scrolling through the $3 blouses and $5 khakis available on its app. In 2022, shortly after it moved its headquarters from Nanjing to Singapore, the company was valued by private investors at $100bn.

On August 31st Shein plans to list on the Hong Kong stock exchange-reportedly at a valuation of just $27bn. Its business has deteriorated dramatically. In 2024 it generated $39bn in revenue, up by 21% from the year before. ...