China-based online FMCG retailer Shein more than doubled its revenue to more than $2 billion. This happened while the company is awaiting approval to list on the New York or London stock exchanges.
The company, which has grown rapidly around the world by using social media to promote its goods, recorded sales of about $45 billion last year, according to a report by the Financial Times.
The figures show Shein, which has moved its headquarters to Singapore, is among the world's most profitable fashion companies, earning more than Swedish fashion group H&M and Britain's Primark and Next. However, profits for Inditex, the Spanish owner of Zara, Bershka and Massimo Dutti, remain higher at €6.9bn for 2023.
UK Finance Minister Jeremy Hunt held talks with Shein boss Donald Tang in February to try to convince him to list the company on the London Stock Exchange. The company is believed to be considering listing on the London Stock Exchange as it believes the US Securities and Exchange Commission is unlikely to approve its initial public offering (IPO). If it goes ahead, it would be one of London's largest corporate listings, valued at $90 billion.
The rapid rise of Shein, which last year bought online brand Missguided from Mike Ashley's Frasers Group after it reported sales of £1.1bn for its UK division in 2022, has put pressure on online fashion specialists in the UK including Asos and Boohoo. The new competitor is gaining ground just as UK online groups are grappling with a shrinking market following the pandemic boom.
Shein benefits in part by shipping goods from China directly to buyers, including the UK and US, so they attract less tax. This tactic proved controversial and prompted calls to change the tax rules.
Founded by entrepreneur Chris Xu, the company continues to do most of its business from China, but sells all of its goods outside the country. In April 2022, it reached a valuation of $100 billion in a fundraising round, making it the third most valuable startup in the world.
By May of last year, the company's value had fallen to just over $60 billion, but Shane reportedly told investors he hoped for a valuation of up to $90 billion if he went ahead with the public listing./BGNES
Fast fashion company Shein reports $2 billion in revenue for 2023
