🛍️ Shein Hikes Prices
Shein, known for its affordable fashion, has raised prices by over a third on some core products. This price hike comes ahead of Shein's planned IPO. The average price for a dress in the U.S. jumped 28% to $28.51, based on data from EDITED. Despite the increase, Shein's dresses remain cheaper than those of competitors H&M and Zara, which average $40.97 and $79.69 respectively.
📈 Revenue and IPO Plans
Coresight Research estimates that Shein's revenue will hit $50B this year, a 55% jump from last year. Increasing prices on core products and adding more external brands, like Skechers, can help Shein achieve this revenue goal. Erik Lautier from AlixPartners says, "Shein has seen very strong momentum recently, which could play favorably into its IPO plans."
🌍 Global Price Changes
In the UK, Shein's dresses now cost 24.12 pounds ($30.97) on average, up 15%. Across France, Germany, Italy, and Spain, prices have risen by 36%. Louise Deglise-Favre from GlobalData notes, "Shein may sustain growth by entering new markets, strategically increasing prices, or through acquisitions."
💵 Impact on Profit Margins
Shein's price increases are also aimed at boosting profit margins before its IPO. Alex Romanenko from Pearson Ham Group says, "If they can demonstrate that these prices stick, then the valuation increases significantly." Shein is seeking a valuation of around 50 billion pounds in its London listing. However, higher prices can affect conversion rates, so Shein needs to attract more visitors to sustain growth.
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