hand holding mobile phone showing Shein advert against brick wall

Shein's Exposive Growth Over

Article taken from BoF Professional, (Business of Fashion), a super informative platform to be kept in the know on anything fashion. Written by Cathaleen Chen, 30 Jan 2023.


· After years of explosive growth in the US, Shein sales slowed dramatically starting in early 2022, according to data from Earnest Research.

· In a slowing economy, some are spending less money on fashion; Shein's negative publicity regarding sustainability in its supply chain may also have taken a toll.

· But the company said it's well-positioned for 2023. According to market reports, it's now seeking $3 billion in new funding.

Between 2019 and 2021, Shein quadrupled sales, and at one point last spring, commanded a $100 billion valuation in a funding round, more than the market capitalisation of the owners of H&M and Zara combined. Allegations that the retailer’s clothes were shoddily made, that it mistreated workers, ripped off independent designers and that its business model was a disaster for the planet appeared to leave no mark.

Shein is no longer looking quite so invincible these days.

In the US, the Chinese fast-fashion retailer’s growth slowed dramatically starting in early 2022, according to data from Earnest Analytics, which tracks consumer spending online. In June, the company saw its first year-on-year sales decline since the pandemic. Sales then fell for five months before rising slightly in December. Last week, the Financial Times reported that Shein was raising funding at a $64 billion valuation — still enormous for an online fashion retailer but down one-third from its last raise.

There’s no one reason why some of Shein’s customers have moved on. In a slowing economy, some are spending less money on fashion. The infamous Shein hauls — big orders of clothes meant to be shown off on social media but only worn once, if at all — look increasingly out of step with the times. The negative publicity may have taken a toll.
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