Shein Profits Soar as IPO Looms
Quote from VATcal on 02/04/2024, 20:47Fast fashion giant Shein has seen its profits more than double in the last year, according to sources close to the company. The Chinese online retailer, now headquartered in Singapore, reportedly raked in over $2 billion (£1.6 billion) in profit in 2023, up from $700 million (£557 million) the year before.
This surge in profitability comes alongside a significant rise in sales. Shein is estimated to have reached a gross merchandise value (GMV) of $45 billion (£35 billion) last year. This puts them ahead of established fast fashion brands like H&M and Primark, although they still trail Inditex, owner of Zara and Bershka.
Shein's success is attributed to its combination of trendy, low-cost clothing and a strong presence on social media, particularly among Gen Z consumers. The company is known for its rapid release of new styles, allowing customers to keep up with the latest trends at minimal expense.
This financial windfall comes as Shein prepares for a much-anticipated initial public offering (IPO). The company is reportedly considering listings on either the New York Stock Exchange or the London Stock Exchange. Regulators in both the US and China are expected to play a role in determining the final venue. Chancellor Jeremy Hunt has reportedly been lobbying for Shein to choose London, potentially boosting the UK's financial sector.
Despite its financial success, Shein has faced criticism for its environmental impact and labour practices, common concerns within the fast fashion industry. As Shein prepares to enter the public eye with its IPO, it will likely face increased scrutiny on these issues.
Fast fashion giant Shein has seen its profits more than double in the last year, according to sources close to the company. The Chinese online retailer, now headquartered in Singapore, reportedly raked in over $2 billion (£1.6 billion) in profit in 2023, up from $700 million (£557 million) the year before.
This surge in profitability comes alongside a significant rise in sales. Shein is estimated to have reached a gross merchandise value (GMV) of $45 billion (£35 billion) last year. This puts them ahead of established fast fashion brands like H&M and Primark, although they still trail Inditex, owner of Zara and Bershka.
Shein's success is attributed to its combination of trendy, low-cost clothing and a strong presence on social media, particularly among Gen Z consumers. The company is known for its rapid release of new styles, allowing customers to keep up with the latest trends at minimal expense.
This financial windfall comes as Shein prepares for a much-anticipated initial public offering (IPO). The company is reportedly considering listings on either the New York Stock Exchange or the London Stock Exchange. Regulators in both the US and China are expected to play a role in determining the final venue. Chancellor Jeremy Hunt has reportedly been lobbying for Shein to choose London, potentially boosting the UK's financial sector.
Despite its financial success, Shein has faced criticism for its environmental impact and labour practices, common concerns within the fast fashion industry. As Shein prepares to enter the public eye with its IPO, it will likely face increased scrutiny on these issues.
