In the group of investors there would also be General Atlantica private equity company that holds shares of the US brand Tory Burch.
Based on data from CB Insightsif the valuation were confirmed Shein would become one of the three startups with the highest value in the world, later ByteDance (at the head of TikTok) e SpaceX.
In recent months, rumors have been chasing each other about a possible landing of the company on Wall Street: an operation that, if successful, would turn out to be the largest IPO ever carried out by a Chinese company on the American list.
After all, Shein’s sudden growth has long been under the lens of the market because the e-tailer, walking quietly (low profile, zero advertising, no interviews), has gone from the 50 million dollars of turnover in 2012 – when was born – at 10 billion in 2020. And, according to forecasts of Morgan Stanleycould reach 20 billion in 2022.
Bargain prices, a huge offer and on-demand production are the strategies that allowed the app founded in 2008 by Chris Xu to conquer Gen Z, thanks to an ultra fast fashion produced entirely in house that cleans up intermediaries and sells directly on the web to Europe and the United States (its main market), engaging end customers on Tik Tok, Instagram e You Tube.
«Shein – spiega a fashionmagazine.it Dario Goliziateacher and author of Fashion Business, Teorie e casi Strategic Fashion Management – implemented one of the most aggressive business models ever. He copied the typical pattern of traditional fast fashion, making innovations that differentiate him from the leaders Inditex e H&M, because it has reduced production and delivery times, allowing an even more sudden change of the assortment compared to competitors with a mainly physical distribution ».
Shein, in fact, is not a simple online sales platform, but a 4.0 factory that makes use of about 3 thousand Chinese suppliers, of which about 1,400 in the Guangzhou region alone, who produce continuously but on demand, according to the thermometer of the trends and likes.
Here lies the secret of Chris Hu, a very expert in Seo: being quick and surgical in extrapolating trends from the web, quick and focused in translating them into a product, just as quick in putting them on the market, even faster in realizing what they do on a large scale. hit the mark.
Geographical proximity of production sites, artificial intelligence, deep and machine learning, a software called Lacr-Large Scale Automated Test and Re-Order are the basic ingredients of his business recipe, which has managed to beat two sprinters like Inditex and H&M.
At the Shein phenomenon the number 1 of Fashion (February-March 2022) dedicated an investigation, analyzing his strengths but also weaknesses, starting from his opacity regarding social practices (environmental responsibility and working conditions in the first place), which place him in a controversial position , especially in this phase, in which the western fashion industry is facing a titanic transformation towards sustainability.