SHEIN: How the Chinese Company Competed in Online Fashion Retail

SHEIN was founded by Chinese entrepreneur Chris Xu in 2012 and quickly became a major player in the global fashion industry. The company now serves customers in over 150 countries and employs more than 11,000 people, according to its website.

According to a report by the Financial Times, SHEIN has secretly filed for an initial public offering (IPO) on the New York Stock Exchange, as reported by Al Arabiya.

SHEIN stands out by launching thousands of new designs daily and operates a direct-to-consumer model that attracts millions of followers on social media. The company also heavily relies on influencers and discounts to promote its products.

Known for its competitive prices, such as $10 shirts, SHEIN manages a portfolio of 10 brands, including Romwe, MOTF, and Cuccoo. Although the company doesn’t publicly disclose its revenues, sources estimate it earned around 15.7 billion dollars in 2021.

SHEIN operates on a made-to-order system, producing clothes in China and selling them online in markets like the United States and Europe. This allows the company to respond quickly to changes in demand and minimize unsold inventory.

In an increasingly challenging commercial environment, SHEIN ships most of its products directly to U.S. consumers, helping it avoid stockpiling and bypass U.S. import tariffs on low-cost Chinese goods.

SHEIN was valued at over $60 billion following a fundraising round in March, where it raised 2 billion dollars. Despite this impressive valuation, the company still trails behind Uniqlo and Zara in market value.

At the end of 2021, SHEIN moved its headquarters to Singapore from Nanjing, the capital of China’s Jiangsu province, in a move that analysts see as a way to bypass China’s strict new regulations on overseas listings.