Editor’s Choice: As superfast-fashion retailer Shein misses stock trend, Uniqlo bets on brand power

Akito Tanaka shares his weekly reflections and recommendations Shein founder Sky Xu, center with a flower pin, appears on stage for a photo session after the listing ceremony at the Hong Kong Exchange on Sept. 1. © Reuters Hello from Tokyo. China-founded fashion retailer Shein debuted on the Hong Kong stock market on Tuesday. The company's business model — which analyzes social media and other big data to spot emerging fashion trends, rapidly mobilizes Chinese suppliers to produce new items, and sells them online at rock-bottom prices almost immediately — made it a poster child for the rise of "superfast fashion." Yet despite being a trendsetter in the industry, Shein does not appear to be on-trend with the growth narrative investors want. The company's shares slipped lower than its initial public offering price. Its market capitalization stood at $24.6 billion on Tuesday, far below its private-market peak valuation of about $100 billion in 2022. According to a Nikkei Asia analysis, Shein's performance has slowed as regulatory changes affecting low-value imports into the U.S. and Europe have increased costs in its key Western markets. Competition has also intensified with Chinese-owned online retail rival Temu.

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