Chinese-founded e-commerce giant, Shein recorded $2 billion profits in 2023. The e-tailer’s gross merchandise value also increased to approximately $45 billion as the sales of ultra-fast fashion items like bodysuits, minidresses, and slingback pumps increased.
With these numbers, Shein has positioned itself as a formidable force in the global fashion industry, potentially even surpassing previous leaders like H&M Group.
The e-commerce company continues to expand aggressively despite facing regulatory hurdles for its much-anticipated initial public offering (IPO). Its recent acquisitions include a significant stake in Sparc Group and acquiring Missguided's intellectual property.
The company plans to further diversify its business model by opening its platform to global brands and third-party sellers. It also plans to offer its supply chain as a service to outside brands and designers. This will enable the e-tailer to differentiate itself from competitors like Temu, which has emerged as a fierce rival, particularly in the United States.
Currently, Shein is being scrutinised by lawmakers for its interactions with the Chinese government and Communist Party. This has led to lawmakers demanding increased transparency and disclosures from the company.
Meanwhile, the e-commerce giant’s dominance is also being challenged by another company Temu. Despite being criticised for exploiting loopholes to avoid tariffs, Temu continues to expand its market share and revenue.
