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Fast fashion giant Shein raises prices ahead of its IPO

Lifestyle and Fashion

Shein raises prices ahead of IPO

An examination of Shein's pricing strategy reveals that the fast fashion retailer has increased the prices of some of its key items.

This move is expected to increase revenues before Shein's anticipated initial public offering (IPO).

According to a London-based research firm, Shein's prices have risen more on average over the last year than those of its rivals, Zara and H&M. Shein declared she wouldn't respond. The business creates and markets its own brands, mostly for women's apparel. It also runs a variety-stocked online marketplace.

Shein has a network of suppliers, mostly in China. These suppliers are different because they accept small initial orders and increase their production as demand grows. Approximately 5,400 vendors in Guangzhou, China, produce the majority of the apparel that Shein offers. Shein's financial information is not public, but Coresight Research predicts Shein will make $50 billion in revenue this year, a 55% increase from last year. Shein can increase sales and profits by raising the prices of its main women's clothing lines and adding more external brands to its website.

According to ecommerce expert Erik Lautier from consultant AlixPartners, Shein has recently gained significant momentum, which could help its IPO prospects. Shein is preparing for its IPO, but being a publicly traded firm comes with additional expenses. Online platforms must comply with new EU rules, which may increase costs and impact profits. Shein raised the average price of women's dresses in the United States, its biggest market, by 28% to $28.51, according to updated data.

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