Shein, the Chinese e-commerce company specializing in fast fashion, plans to raise $1 billion for a valuation of $100 billion. What thrill behemoths like Amazon or Zara?
A specific and very effective formula
This is information collected and shared by the very serious specialized media Bloomberg, who managed to speak with people familiar with the matter: Shein is currently in discussions with investors, including the emblematic General Atlantics, to raise 1 billion dollars and thus reach the 100 billion dollar valuation mark. The talks are, at this time, not final and the figures specified here could still change.
Last May, the Chinese firm assured that it was not planning an IPO. Shein, based in the southern Chinese city of Guangzhou, has become a true global reference in the fast fashion sector thanks to its own unique processes.
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As explained TechCrunch, the company’s designers closely follow influencers on social media as well as fashion shows to design new pieces, a method not much different from that of other fast fashion brands. What sets Shein apart, however, is the responsiveness of its supply chain, which consists of an extensive network of loyal and agile workshops around Guangzhou. The company tests a wide variety of inexpensive clothing in small batches, and if the data shows something is selling well, it quickly places more orders with its suppliers to sell even more. This demand-driven approach allows Shein to keep costs low.
Shein is becoming a real reference in the fast fashion sector. Photography: Alyssa Strohmann / Unsplash
Shein hasn’t stopped growing
In addition to Guangzhou, Shein also has operations in Singapore and Los Angeles. It also offers more than 600,000 items to customers in more than 150 countries. For nearly two years, its results have been such that it now overshadows the behemoths of the e-commerce and fast fashion sector.
For example, Shein was the second most downloaded shopping app in the US after Amazon in 2021. But while Shein continued to enjoy great momentum, its installs grew 68% year over year. , Amazon saw a decline of 2.4%. Worldwide, Amazon was the fourth most downloaded shopping app, overtaken by Shopee from Singapore, Shein and Meesho from India.
Shein therefore seems well on its way to continuing its momentum and growing even further. If it reaches its goal with a valuation of 100 billion dollars, it would then become the third largest startup in the world in terms of valuation, behind ByteDance, the parent company of TikTok, and SpaceX.