Shein is preparing for an IPO with a significant price increase
Chinese fashion retailer Shein, known for its low prices, has now implemented a significant price increase on some of its core products. By doing so, you probably want to increase your earnings before the planned IPO. According to a London-based research firm, Shein’s average price increase exceeded that of rival big brands such as H&M and Zara.
In the US, the average price of Shein women’s clothing increased by 28%, which is a significant increase compared to the competition, but still better than the average prices of H&M and Zara. The average price of clothes on the UK website has risen by 15% in a year, while in France, Germany, Italy and Spain the increase has reached 36%.
Shein aims to reach a £50 billion valuation during its IPO. In this context, price increases can be a strategic move by the company to maintain their recent growth and sell higher priced products. According to GlobalData’s analyst, growth may slow down in certain markets, but expansion can still be sustained by entering new markets and making strategic decisions.
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