Following today’s news that Shein’s profits doubled in 2023;

Louise Deglise-Favre, Apparel Analyst at GlobalData, a leading data and analytics company, offers her view:

“Shein continues to achieve phenomenal growth, with its gross merchandise value reportedly rising to around $45bn in 2023, up from reportedly $30bn in 2022, while its profits more than doubled to $2bn, as its extensive and affordable product offering maintained high appeal among consumers in last year’s tough economic climate. GlobalData now expects Shein to have overtaken Zara to become the world’s largest apparel retailer in 2023, which is even more impressive considering it has no presence in its lucrative home market of China.

“The retailer’s strength partially resides in its ability to release thousands of new items daily, ensuring it responds to trends in record time. It has also successfully leveraged the power of social media, benefitting from both influencer marketing and organic user-generated content, such as “hauls”, helping it to be top of mind for Gen Z shoppers. Shein’s growth will also have been driven by the expansion of its marketplace, which stocks third-party brands such as Romwe and Emery Rose, as well as Forever 21, which Shein partially acquired in August 2023. Shein has also been expanding categories such as homewares and beauty, increasing its destination appeal.

“Whilst Shein’s IPO location has yet to be determined, it will likely be the largest IPO of 2024. Becoming a public company will force Shein to be more transparent about its finances, operations and supply chain practices, the latter of which will prove challenging for the retailer following the many criticisms against its ethical standards. Shein’s growth is also bound to slow down in the coming years as it becomes even more established and faces rising competition from other ultra-fast Chinese rivals such as Temu, Cider and Rihoas.”