Shein expands with cheap products and expensive stocks

By: Trademagazin Date: 2023. 11. 28. 11:09

Among the Chinese online retailers conquering the world with fashion goods at dumping prices, Shein is preparing for another big launch, as it has announced its intention to carry out an Initial Public Offering (IPO). The company values itself at $90 billion, and according to information from the Wall Street Journal, it has already submitted the necessary documents to the US Securities and Exchange Commission (SEC).

Shein, as one of the prominent players in the fast fashion online fashion trade, avoids the problem of unsold inventory thanks to its direct delivery strategy. In addition, in the United States market, applying the “de minimis” principle, you do not pay duties on your cheap products. This year, the company is putting special emphasis on strengthening the American market, and in August it signed a partnership agreement with SPARC Group, which is a joint venture between Authentic Brands and shopping center operator Simon Property.

However, Shein has to reckon with the fact that winning over the American audience will not be an easy task. Although there is a lot of interest in the products of Shein and its Chinese rival, Temu, only one in twenty viewers decide to buy. This number is significantly lower than the results of Amazon, which encourages every second visitor to make a purchase.