Shein is believed to be moving forward with its long-rumoured IPO.Credit:Bloomberg
Shein (pronounced “she-in”) has become popular thanks to its trendy clothing at ultra-low prices. The company has been hoping for a valuation of as much as $US90 billion ($136 billion) in a US IPO,Bloomberg News reported earlier this month. Shein’s estimated sales now far surpass Zara and H&M in the US fast-fashion market.
At the same time,Shein has come under fire for poor labour conditions in factories it partners with,overproduction of poor quality garments and the use of cotton from a Chinese region accused of using forced labour. US senators have written to Shein chief executive officer Xu Yangtian (also known as Chris Xu) to request more information on the labour claims.
The criticism hasn’t stopped Shein’s meteoric rise among shoppers all over the world.
Last year,Shein opened distribution centres in the US,Canada and Europe to accelerate shipping times in those regions. It has also begun to expand manufacturing in Brazil,Turkey and India.
Speed is the Chinese company’s defining characteristic,anticipating the tastes of Western teenagers and catering to shifting preferences almost instantaneously using artificial intelligence and ultra-quick supply chains.
Shein’s founders’ roots in online marketing are key to the company’s success. Through real-time data and algorithms,Shein identifies hot items and adjusts production to keep inventory rotation and delivery speedy.