"It would give Shein access to a market recognized by international investors while also bringing it closer to domestic investors, particularly as the Chinese mainland could become a more important growth market for the company in the future," he said.

　　Pan's comments came as overseas policy changes have added to the company's operating pressure. The United States ended duty-free de minimis treatment in May 2025 for covered goods from the Chinese mainland and Hong Kong that had previously entered in parcels valued at no more than $800. From July 1 this year, the European Union also abolished its customs-duty exemption for consignments valued at no more than 150 euros ($175) and introduced a temporary duty of 3 euros per item category.

　　The e-commerce giant is responding by shifting from its previous direct-to-consumer shipping model into a more flexible business-to-business-to-consumer pattern — consolidating goods in China, shipping them to Europe in bulk and completing delivery from local warehouses, said Chen Liteng, a senior analyst at the Internet Economy Institute, a domestic consultancy.

　　"This model subjects the goods to the EU's regular apparel import tariffs instead of a flat duty on each item category," Chen said. "Even after adding the cost of sorting, packing and local delivery, the model's total cost remains below the per-category duty incurred by direct shipment of small parcels."

　　The senior analyst added that the use of local warehouses could also reduce customs-related costs while allowing Shein to retain the inventory discipline of its signature "test-and-repeat" model, under which products are initially made in small batches and replenished according to demand.