Shein will reach $24 billion in sales this year, surpassing H&M

Shein rethinks the global fashion board. Chinese fashion distribution group ultra low prices expects to invoice 24,000 million dollars (24,077 million euros) this year, which could position it as the second largest operator in its sector internationallyaccording to the data he collected The Wall Street Journal.

The figure corresponds to annual growth of 50%, based on revenues of $16,000 million in 2021, according to Credit Suisse estimates. Last year, the group increased sales by 60 percent, and in the year of the pandemic by as much as 250 percent.

The gross merchandising value (GMV) generated on the Shein platform could increase by 50% this year, to approximately $30,000 million, according to the company’s own predictions. The company crossed the break-even point for the first time in 2019, on the brink boom popularity brought by 2020with the outbreak of the pandemic.

Shea’s turnover in 2022 could threaten the position of H&M, which currently occupies silver in fashion distribution. In the financial year 2021 (ended on November 30 of the same year), the Swedish group had a turnover of SEK 198,967 million (which was then equivalent to EUR 19,350.7 million).

In the first nine months of the current fiscal year (until August last year), H&M achieved turnover of 161,120 million Swedish kronor (14,766 million euros), 13.3% more than in the same period of the previous year. The Swedish group has not yet recovered its pre-pandemic revenues.

Inditex, number one in the world of fashion distribution, concluded 2021 with annual sales growth of 36%, to 27,716 million euros. In the first six months of the current year (from February to July), the Galician group invoiced 14.845 million euros.

After starting to slow his growth in 2021, Shein significantly reduced his valuation this year. Since April, when it was valued at $100 billion after the last round of financing, the Chinese group lost a third of its valueaccording to estimates Financial Times.

Shein was founded fourteen years ago in China by Chris Xu under the name Sheinside, and is headquartered in Singapore. Through a business model based on ultra fast fashion and a very close network of service providersin the last five years, the group has positioned itself as one of the main fashion operators in the United States.

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