Despite increasing scrutiny of fast fashion from a sustainability perspective, Shein, known as “ultra-fast fashion,” has doubled its profits to more than $2 billion.
According to an article in the Financial Times, the company effectively utilized social media channels to market its products, leading to sales worth around $45 billion in the preceding year. Additionally, the company recorded a net profit of $700 million in 2022 and $1.1 billion in 2021.
The company, founded in China and then moved to Singapore, is now one of the world’s most profitable fashion companies, selling many trend-conscious items at ultra-low prices of $10 or less and gaining a passionate following, especially among Generation Z.
Swedish-born H&M reported a net income of $820 million last year, while Shein has surpassed that figure. On the other hand, Spain’s Inditex, which owns Zara, Bershka, and Massimo Dutti, remains highly profitable, with a net profit of $5.8 billion last year.
While Shein’s operations are primarily based in China, all of the company’s products are sold outside of the country. In April 2022, Shein achieved a $100 billion valuation in a financing round, making it the third most valuable startup company in the world. However, its value fell to just over $60 billion last May. Nevertheless, the company has reportedly expressed hope that it could reach a valuation of up to $90 billion if it proceeds with its IPO.
There is currently no update on the location of Shein’s IPO, and while the first choice is New York, London is seen as a fallback option given the unfavorable atmosphere for U.S. listings of Chinese companies.