As market watchers continue to debate Shein's $100 billion valuation milestone, another Chinese cross-border e-commerce player—Zibuyu Group—has quietly initiated its Hong Kong listing plan. This apparel-focused platform, which went public on November 11 (Singles' Day) with stock code 2420, raises questions about whether it can replicate Shein's success and what strategies underlie its cross-border expansion.
IPO Details and Market Positioning
On October 31, 2022, Zibuyu announced its Hong Kong Main Board listing, offering 29.25 million shares globally. The IPO, jointly sponsored by Huatai Financial Holdings and ABC International, aimed to raise between HK$229.9 million and HK$275.5 million. While the listing drew attention to Zibuyu's potential, comparisons with Shein reveal stark differences in scale. Shein reported $16 billion revenue in 2021 with a valuation exceeding $100 billion, while Zibuyu achieved RMB2.35 billion ($326 million) during the same period.
From College Dorm to Public Listing
Zibuyu's origin story begins in 2009 when founder Hua Bingru, then a university student in Anhui province, identified opportunities in Taobao drop-shipping. Operating from his dormitory, Hua connected with garment factories in Guangdong and Fujian, achieving financial independence before graduation.
In 2011, Hua established Zibuyu in Hangzhou with a six-person team. The company launched its first Youchu Tmall flagship store in 2012, specializing in women's apparel and surpassing RMB100 million in annual sales. A strategic shift to "original design + OEM production" created a lean operational model that enhanced product differentiation while reducing costs.
Global Expansion and Future Challenges
Zibuyu's overseas success stems from its "original brand design + cross-border e-commerce" strategy. After achieving RMB10 million sales within six months on AliExpress, the company expanded to Amazon in 2014 and launched its independent website in 2018, reaching RMB1.32 billion annual revenue.
Currently operating in 186 countries, Zibuyu releases over 10,000 new apparel and footwear designs annually across multiple platforms. While trailing Shein's 150,000 annual new products and 220-country footprint, Zibuyu's journey from college startup to public company exemplifies the potential of China's cross-border e-commerce sector.
The listing provides capital to reduce third-party platform dependence—a critical vulnerability given Amazon's unpredictable policy changes. Whether Zibuyu can leverage these resources to build Shein-like brand recognition and diversify its sales channels remains the next chapter in this unfolding corporate narrative.