LONDON, June 13 — Fast fashion retailer Shein, known for its China-made US$5 tops and US$10 dresses, has hiked prices by over a third on some core products, in a move likely to boost revenues ahead of its planned IPO, according to an analysis of its pricing strategy. Shein’s average price hikes exceeded those of its rivals H&M and Zara, according to data from London-based research firm EDITED, which compared prices on June 1 with a year earlier. Shein declined to comment.
The company operates an online marketplace selling an array of merchandise, though its main business is making and selling Shein’s own brands, primarily women’s clothing. Shein taps a network of largely China-based suppliers, which buck traditional manufacturing processes by taking small initial orders and scaling up based on demand. Most of the clothing Shein sells is made in Guangzhou, China, by its roughly 5,400 suppliers.
Though Shein doesn’t disclose financial data publicly, Coresight Research estimates that Shein’s revenue will reach US$50 billion this year, a 55 per cent jump over last year’s figure. Making its core women’s clothing lines more expensive and getting more outside brands to sell on its site can help Shein to hit that sales figure and boost profits. “Shein has seen very strong momentum recently, which could play favorably into its IPO plans,” said Erik Lautier, ecommerce expert at consultancy AlixPartners.
As Shein prepares for its initial public offering (IPO), it fac.