Shein is all a mystery. The Asian fashion company is unknown to many, but well known to others. Its history is so strange that I still don’t know very well who its founder is. However, none of this has prevented that in April 2022 the portal Bloomberg will calculate its value: $100 billion.
Now the portal communicates that things do not seem to be working very well in the company. Its value has fallen about 30%. This has caused investors (including Tiger Global Management, IDG Capital and Sequoia Capital China) to be on the alert and trying to sell their shares. Something that could negatively affect its intention to go public in 2024.
The fashion company had a growth of more than 250% in 2020 and last year its growth was only 60% in 2021, some people familiar with the business explained to Bloomberg. Sales ultimately that year were $16 billion, up from $10 billion in 2020.
Shein faces many controversies
Shein is the third most valuable startup in the world. This means that it does not go unnoticed, much less its numerous controversies. Especially those related to the environment and labor exploitation.
TikTok is one of the main social networks that the brand uses to make itself known and it is in this same social network where a series of videos have gone viral that share brand labels where it appears written «Help«. This has caused great concern among consumers of the firm. According to InfobaeShein issued a statement saying “Recently, several videos have been posted on TikTok that contain misleading and false information about SHEIN. We want to make it very clear that we take supply chain issues very seriously.”
This could be one of the reasons that have caused the losses in the business.
New omnichanel strategies and commitment to Europe
In recent months, we have seen Shein open numerous stores in Europe; one in Madrid, another in Barcelona and she has also had stores in London and Paris. I jump from her to brick It is directly linked to brand positioning, that is, a strategy to reinforce its brand image and try to make consumers see it as something more than an online store of cheap clothes.
To this is added that a few days ago Moda.es reported that Shein has created a team in Europe to do lobby and connect with brands in the territory. Among the signings he has made is Jacobo García Miña, formerly of Inditex, Burberry and Salesforce, as the new director of business development. His goal will be to focus on improving alliances with European companies and working on Shein’s image in Europe. Therefore, in the coming years we will see many projects of the brand in the EU. The fashion portal has also explained that Garcia will be based in Dublin and reports to Shein’s marketing director in Singapore.
