Before the planned IPO, Shein apparently wants to increase sales by raising prices. The Chinese fashion retailer, known for its cheap offers, is selling some of its core products at more than a third more expensive than a year ago.
This is evident from a study by the British research agency Edited. In Germany, France, Italy and Spain, the average price for women’s clothing rose by 36 percent to 30.20 euros. In the world’s most important market, the US, the increase is 28 percent.
Shein declined to comment on the matter. The Chinese company brings several thousand new garments onto the market every day, which are sold exclusively through its own website and outside China. He also developed a system to quickly adjust production to demand and keep the amount of unsold goods small. According to experts, Shein controls about a fifth of the global market for so-called fast fashion. The clothing is produced cheaply and is usually replaced by new ones after a short time
No financial figures yet
Shein does not yet publish financial figures. Analysts at research firm Coresight expect the group’s turnover to reach $50 billion this year. This would be an increase of 55 percent compared to 2023. The fashion retailer does about 28 percent of its business in the US. With a share of around six percent each, Germany, Great Britain and France follow in second place.
“Shein’s growth momentum has been very strong lately,” said Erik Lautier, an online trading expert at consulting firm AlixPartners. “This could pay off in the planned IPO.” However, the group should not exaggerate with price increases, as this could deter customers. For further growth, it is necessary to attract new users and lure them to your website as often as possible.
According to television channel Sky, Shein is aiming for a valuation of the equivalent of almost 60 billion euros upon its debut on the London Stock Exchange. The emission volume is expected to exceed one billion euros. An IPO of Shein would be a major success for the London Stock Exchange LSE, after several stock market contenders recently turned a blind eye to the London financial center. Shein declined to comment on the stock exchange plans or the desired company valuation.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
