Shein raises product prices sharply Aiming to make a profit before filing the IPO even though sales are more expensive. But still cheaper than competitors

Shein increases product prices by 1/3, aiming to increase revenue and profits before filing IPO, revealing even though sales are more expensive But it's still cheaper than many competitors.

On June 13, 2567, Reuters news agency reported that Shein Chinese fashion product platform It raised prices of some products by more than one-third ahead of the IPO. It is a strategy that is expected to increase income. And they want to show that they can still maintain growth. In addition, more products can be sold at higher prices than before.

Shein is an online shopping platform that is known for selling a wide range of cheap clothing, such as dresses for $10. Shein has recently increased its prices even more than last year.

Shein dresses on UK website The average price for a dress was around $30.17, up 15% from last year. Dresses sold on the site in France, Germany, Italy and Spain were 36% more expensive. In the US, which is Shein's largest market, it was found that the products with the biggest price increase were shoes. from an average of 25.3 US dollars per pair last year. up to 40.7 US dollars per pair at present

The United States is Shein's largest market, followed by the United Kingdom and Germany. Shein also generates substantial revenue in Brazil and Mexico. It is also growing rapidly in other emerging markets.

Even though the price has increased a lot But Shein's clothes It's still cheaper than competitors like H&M and Zara, with an H&M dress costing an average of $40.97 USD, while a Zara dress costs an average of $79.69 USD.

Shein has the advantage of having a large supplier network of more than 5,400 suppliers, mainly in Guangzhou, China. These suppliers are different from traditional clothing and apparel manufacturers who often produce to large orders. But they produce according to small orders. which if orders increase It will make it possible to produce more in a short time. In this way, Shein Respond quickly to clothing trends and avoid producing too much product to the point of not being able to sell it all

In this regard, the price of main products will be more expensive. and selling other brands on the platform helped Shein exceed its sales target and increase its profits. And even though Shein Financial information is not publicly disclosed, but Coresight Research estimates Shein's revenue will reach $5 billion this year. This is a 55% increase from last year.

refer : reuters.com

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