Shein's unlikely acquisition of the ethically focused Everlane brand appears to be a cheap image rehabilitation strategy ahead of a potential Hong Kong IPO
Canadian Solar is expanding its high-tech cell manufacturing in the U.S. to bypass tariffs, but could face pushback from Beijing
image credit: Bamboo Works
We're currently seeing two major companies with deep Chinese roots use very different strategies to bypass Western skepticism and trade frictions. Embattled fast fashion giant Shein is attempting to buy its way to ethical credibility by acquiring U.S.-based Everlane, while Canadian Solar (NASDAQ:CSIQ) is moving its high-tech manufacturing to American soil to shed its Chinese identity. While these two industries may be unrelated, there's a clear underlying connection, both companies are urgently trying to blend into Western markets to outrun geopolitical resistance.
BusinessFormation
Shein recently made global headlines with its unlikely purchase of Everlane. For those unfamiliar, Everlane rose to prominence on a strict commitment to transparency and sustainability, making it highly successful with millennial professionals. The brand reportedly fell on hard times financially, which likely drove it into the arms of such an unlikely suitor. While no official price tag was given, one media outlet that broke the news put it at around $100 million.
This is peanuts for Shein, especially considering Everlane was previously valued at around $600 million. But it stands out as the biggest acquisition Shein has done to date. It's an unusual move given Shein's notorious reputation for lack of transparency and reliance on questionable business practices, including accusations of using sweatshop labor. We don't think Everlane would ever get caught doing something like that.
We believe the driving force behind this deal is pure image rehab. When you've been vilified for your practices, buying a company known for ethical behavior is a calculated shortcut. Shein will probably squeeze the Everlane line by dramatically lowering the ...
