Fast-fashion retailer Shein is reportedly generating revenue at a rate that is putting it close to that of its rivals, H&M and Zara.
The online retailer is expected to generate revenue of close to $24 billion and gross merchandise value (GMV) of $30 billion this year, The Wall Street Journal reported Friday (Oct. 28).
The projected GMV figure would be 50% higher than that generated by Shein in 2021, according to the report, which cited unnamed sources and noted that the privately held company does not disclose this kind of data.
Shein’s growth is being driven by its ability to sell products at very low prices, its extensive product offering and its rapid response to new trends, according to the report.
The company keeps prices low by selling directly to consumers, carrying little excess inventory, and producing items quickly and in small quantities so that it doesn’t get stuck with inventory that goes unsold, the report stated.
“Very little of our merchandise isn’t sold. That’s how we can be so cost-effective,” Shein Chief Operating Officer Molly Miao said in a recent interview with the WSJ.
The company ships products to customers in 150 countries and has a network of 3,000 suppliers, according to the report.
PYMNTS has reached out to Shein for comment.
In April, Shein raised enough money to value itself at $100 billion, Bloomberg News reported at the time.
That fundraise came after the company’s sales grew 250% in 2020 and 60% in 2021, according to the report.
With that valuation, Shein became one of the world’s most valuable startups, selling its inexpensive clothes, lifestyle and beauty products primarily to teens and tweens in the West who’ve made its app one of the most downloaded on the planet, per the report.
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