Shein reportedly raises prices to boost profits ahead of IPO
Shein, the fast-fashion e-tailer that sells dresses for as little as £5, has hiked up some of its prices by over a third to boost revenues ahead of its London-based IPO.
The fast fashion retailer's average price hikes exceeded those of its rivals H&M and Zara, according to data from research firm EDITED, which compared prices on 1 June to the year prior.
According to the EDITED data, in the United States (Shein's biggest market by sales) the company upped the average price for women's dresses by 28% to $28.51.
Shein relies on thousands of third-party suppliers and contract manufacturers, near its headquarters in Guangzhou, China.
Though Shein doesn't disclose financial data publicly, Coresight Research estimated that the retailer's revenue will reach $50 billion this year (up by 55%).
Making core clothing lines more expensive and introducing more third-party retailers on its site could help Shein hit the $50 billion sales figure and boost profits, according to Reuters.
As Shein prepares for its initial public offering (IPO), it faces the higher costs of being a publicly listed company. It is set to file for a London stock market listing any day now. The proposed listing would be one of the largest deals for the London Stock Exchange in a decade and comes amid a dearth of new firms on the UK’s public markets.
