Shein raises the prices of its products. In view of the IPO on the London stock exchange, expected according to rumors already during this month, the Chinese fast fashion giant aims to increase revenues and profits through a new price increase strategy. According to what has been reported by the international press, this year the e-tailer will reach 50 billion dollars (equal to 46 billion euros at today’s exchange rate) in revenues, with an increase of 55% compared to last year.
The increases are affecting all the main markets in which Shein operates, with the average price of a suit increasing by 28% in the United States, reaching 28 dollars (25.90 euros) per garment, while in the United Kingdom a women’s clothing costs on average 24 pounds (28 euros), 15% more than a year ago. In continental Europe, however, more precisely in France, Germany, Italy and Spain, price increases reached +36%.
While remaining well below the average price of a dress H&M at 41 dollars (38 euros) or one item of Zadar at 80 dollars (74 euros) in the United States, Shein has increased prices by a much greater percentage than its competitors over the same period of time. Again in the USA, which represents the main market for Shein, the most significant price increase was that of footwear, with an average pair of shoes sold on the site for 41 dollars (38 euros), compared to 25 dollars (23 euros) of last year.
The increases in the category are also partly due to the entry of Skechers on the Chinese e-commerce platform, which sells shoes ranging from 32 to 174 dollars (29-161 euros) per model.
Shein’s arrival on the London stock exchange would now be imminent, with the Asian fast fashion giant expected to list on the stock exchange with a 50 billion pound (59 billion euro) IPO. The valuation is lower than the market cap initially estimated at between 70 and 90 billion dollars (64-83 billion euros).
The listing would represent one of the largest entries into the British stock market and this operation could revive the London stock market, which in recent years has seen an ever decreasing number of landings on its list. The Chinese e-tailer, which recently moved its headquarters to Singapore, has explored the option of listing in London following resistance from the Sec American for the IPO on Wall Street. (All rights reserved)
Posting time: 06/13/2024 10:20
Last update: 06/13/2024 11:11
