Shein did it a net profit of more than 2,000 million dollars (1,855 million euros) in 2023, that is, it doubles the 700 million in 2022 and the 1.1 billion in 2021, according to the Financial Times, while the Gross Sales Value (GMV) from the Chinese company reached 45 billion dollars (41,723 million euros).
Compared to other of its competitors H&M and Inditex They earned 8.753 million Swedish crowns (775 million euros) or more than 5 billion euros in their last financial years. These results were released while the company awaits both Regulatory authorities in your country and the United States approve listing on the New York Stock Exchangewhich is expected to be the largest Initial public offering (IPO) of the year.
Shein It has been trying to go public on the US stock exchange since last year and, according to the latest information, will do so in the coming months. However, given the obstacles from the US Securities and Exchange Commission, In February, the market indicated a change in its strategy to go public. The company, which is not yet listed on any stock exchange, would consider the possibility of changing its public offering to list on the London Stock Exchange rather than the New York Stock Exchange.
According to sources consulted by Bloomberg, Shein is in the early stages of exploring the London option given the possibility that this could be the case Securities and Exchange Commission (SEC) of the United States does not agree to its listing.
However, Shein would still be working on his application to be listed USA, which would be your preferred option. The Chinese giant would have to submit a new application for approval abroad to Chinese regulators if it decided to make the switch London or to another location, the sources cited above said, adding that other locations could be considered, including Hong Kong or Singapore.
When this strategy is finally implemented, It would be the largest IPO by a Chinese company since Didi’s Wall Street debut, which went public on the New York Stock Exchange in 2021, worth more than 68,000 million dollars (62,735 million euros). Shein could achieve a valuation of 90,000 million dollars (82,253 million euros).
Third Party Supply Chain
At the same time, Shein is also working on a new offering strategy Passing on your business model to third parties. The company plans to offer its infrastructure and supply chain technology to other international brands and companies, the Wall Street Journal reported. Especially with this movement Brands can leverage Shein’s network of suppliers and manufacturers to produce small batches of products and check their response in the market.
Recently, Donald Tang, CEO of Sheininformed its investors of this plan in a letter in which it reiterated its intention to shift its supply chain.as an additional service provided by the company“, while noting that “This move will allow brands and external designers to leverage the sophisticated infrastructure and technology of their production method.«.
Shein’s business model is to have no physical location but to be present in up to 150 countries. It is structured by a network of more than 5,000 Chinese suppliers that work on demand. According to its website, the Chinese marketplace presents an average of more than 15,000 products every month, with prices ranging from one euro to almost 100 euros.