Shein, the Chinese “fast fashion” giant, exceeded $2 billion in profits in 2023

Where will Shein stop? The “fast-fashion” giant, founded in China but now based in Singapore, is raking in profits at several zeros. So much so that they exceeded 2 billion dollars (1.86 billion euros) in 2023, according to a financial document consulted by the Financial Times. Enough to propel Shein to second place in the world in the fashion market, far ahead of the Swedish group H

For Shein, created twelve years ago by Chris Xu (also known as Xu Yangtian), a Chinese entrepreneur born in the United States, the growth is breathtaking: the online fashion giant has seen its profits in 2023 more than double compared to the previous year (700 million dollars in 2022), which marked a sharp decline compared to 2021 (1.1 billion dollars). In addition, according to information gleaned by the Financial Times, the total value of goods sold on the Shein website reaches the astronomical figure of 45 billion dollars (42 billion euros).

A resounding success therefore, but based on an economic model widely criticized in Western countries. Because Shein has pushed the precepts of “fast fashion” very far: low prices, incessant renewal of collections (7,200 new references per day on average), hundreds of thousands of clothes available on the site (“470,000 models available in real time”, calculated the French NGO Friends of the Earth last year), and partnerships with hundreds of influencers on social networks.

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If it works, particularly among young people, this model is singled out for its environmental impact, while being accused of developing overconsumption. In France, Shein is one of the players targeted by the so-called anti-fast-fashion bill, adopted by the National Assembly in mid-March - it must still be examined by the Séant -, which provides, among other things, a penalty on the least environmentally virtuous textile products. Furthermore, like its competitors Zara or H

If the Financial Times revelations are so scrutinized, it is because Shein does not publish its financial results. It is not obliged to do so, not being listed on the stock exchange. Which could quickly change. The Chinese group is in fact in full preparations for an IPO, planned for this year. Last November, it confidentially filed for an initial public offering (IPO) in the United States, the Wall Street Journal reported. He is now awaiting the green light from the Chinese regulator for what could be one of the largest IPOs in years: Shein having been valued at $66 billion (€61 billion) during a funding round. in 2023, and banking today on a valuation of 90 billion dollars (83 billion euros).

Even if Beijing approves, Shein's entry into Wall Street is not a given. Several American political leaders, like Republican Senator Marco Rubio, have already expressed their opposition to this rating project. If the American stock market policeman were to block the operation, Shein would then consider falling back on the London Stock Exchange.