Shein is one of the most popular fast-fashion companies that is popular among people of all age groups, especially Gen-Z, thanks to its affordable prices. But the company has been receiving a lot of backlash from people owing to its contribution to climate pollution, which is raising questions like: Is Shein closing in 2024?
You will be surprised to find Shein’s plans for the year 2024, contrary to what people are thinking. Want to find out more? Then, make sure you read this guide thoroughly.
Shein Company Highlights
|Guangzhou, Guangdong, China
Shein’s Key Statistics
- Shein has estimated 88.8 million active shoppers, of which 17.3 million are based in the US.
- In 2022, Shein was downloaded 200 million times, making it the top most-downloaded app of the year.
- Shein made $22.7 billion in revenue in 2022, showing a 44% increase compared to the $15.7 billion it made in 2021.
Overview of Shein
Shein is a B2C fast fashion company that was founded by Chris Xu in October 2008. The brand is known for selling affordable and stylish clothing items for both men and women, along with other items, including accessories, bags, etc.
The company has markets in the U.S., Europe, and Middle Eastern countries, among others. Shein is quite popular among girls, especially among the Gen-Z population, who like everything trendy.
Shein became hugely popular because of the unreal prices and discounts they offer, allowing anyone to embrace fashion without breaking the bank.
The idea of Shein popped into the founder, Chris Xu’s head when he realized the commercial value of Chinese products in the international market.
At that time, Chris was working with Nanjing Aodao Information Technology Co., but he left the company to give a flight to his new idea.
Xu established an e-commerce site named SheInside and began by selling wedding dresses first as he got to know that wedding dresses are the most sought-after clothes globally.
He then eventually forayed into selling fast-fashion clothing items for women and rebranded the company as Shein.
With smart marketing and strategy, the brand started entering many markets and became one of the most popular fashion brands ever.
How is Shein So Cheap?
Shein files for confidential IPO
Shein, the fast-fashion giant, has reportedly filed for a confidential IPO that is expected to be launched in 2024. The confidentiality allows companies to engage with the U.S. Securities and Exchange Commission secretly, helping them facilitate private adjustments to their filings.
The Securities and Exchange Commission (SEC) allows companies to file for IPOs confidentially. However, it does require the company to notify the public within 15 days of the offering.
The size of the offering has not been revealed officially yet, but it is expected to have a price tag of $90 billion.
This would make Shein’s IPO one of the most substantial IPOs and would give a kickstart to a rather dull market since 2021, except for Instacart, Klaviyo, and Arm Holdings listings in September.
Is Shein Closing In 2024?
Not at all! Shein is not closing in 2024 and, on the contrary, is expected to go public this year.
Shein has received backlash from consumers for threatening the environment and for contributing to overcrowded landfills.
The company has also been banned from Countries like India, but in spite of all this, Shein has been performing great and is definitely not closing down anytime soon.
Shein’s Net Worth
In 2022, Shein raised $1 billion in a funding round, which led to the company’s valuation at $100 billion. This number is more than the value of H&M and Zara combined.
As per a report by Bloomberg, that year, Shein’s was named the world’s most valuable startup of the year.
However, in another funding round that happened in 2023, the valuation of Shein dipped to $66 billion.
Shein’s Revenue Over The Years
How Does Shein Make Revenue?
As mentioned earlier, Shein is in several markets, including France, Germany, Russia, the U.S., Australia, the Middle East, etc.
So when it comes to the revenue part, Shein receives most of its e-commerce sales from the “Fashion” category, followed by the “Furniture & appliance” category.
The United States is Shein’s biggest market, and the company gains a profit margin from each sale that it makes.
Apart from the obvious, Shein also makes its money from delivery fees and by doing partnerships with other brands. Due to this, Shein was able to make $22.7 billion in revenue in 2022, showing a significant increase since 2016.
From being in relative obscurity to chartering meteoric rise, Shein has come a long way. The company has grown so much that it has even filed confidentially to go public in 2024.
Shein’s IPO will be much awaited as it is expected to be one of the largest bids of this year. After the confirmation of this news, you must have got your answer to the question: Is Shein Closing?
Who owns Shein currently?
Nanjing Lingtian Information Technology Co. Ltd. is currently the parent company and owner of Shein.
Why is Shein so successful?
Shein is so successful because of its trendy and cheaply priced clothes, most of them costing under $10.
Why is Shein's clothes priced so cheaply?
One of the reasons why Shein offers clothes at such low prices is because it outsources labor from cheaper markets.