To push sales:

Low-cost fashion retailer Shein noticeably increases prices

The Chinese company launches several thousand new items of clothing onto the market every day, which are sold exclusively via its own website and outside China.(Bild: APA/Getty Images via AFP/GETTY IMAGES/David Becker)

Ahead of its planned IPO, Shein apparently wants to drive up sales by increasing prices. The Chinese fashion retailer, known for its cheap offers, is selling some of its core products more than a third more expensively than a year ago.

This was the result of a survey by the British research company Edited. In Germany, France, Italy and Spain, the average price for women's dresses, for example, has risen by 36 percent to 30.20 euros. In the USA, the world's most important market, the increase amounted to 28 percent.

Shein did not wish to comment on this issue. The Chinese company launches several thousand new items of clothing onto the market every day, which are sold exclusively via its own website and outside China. It has also developed a system to quickly adapt production to demand and keep the amount of unsold goods to a minimum. According to experts, Shein thus controls around a fifth of the global market for so-called fast fashion. The garments are produced cheaply and are usually replaced by new ones after a short time

No key financial figures yet
Shein has not yet published any key financial figures. However, analysts at the research firm Coresight assume that group turnover will reach 50 billion dollars in the current year. This would be an increase of 55% compared to 2023. The fashion retailer does around 28% of its business in the USA. Germany, the UK and France follow in second place with a share of around six percent each.

"Shein's growth momentum has been very strong recently," said Erik Lautier, online retail expert at the consulting firm AlixPartners. "This could pay off in the planned IPO." However, the Group should not go overboard with its price increases, as this could deter customers. For further growth, it is necessary to attract new users and lure them to its own website as often as possible.

According to TV broadcaster Sky, Shein is aiming for a valuation of just under 60 billion euros for its debut on the London Stock Exchange. The issue volume is expected to amount to more than one billion euros. A Shein IPO would be a great success for the London Stock Exchange (LSE), after several stock exchange aspirants had recently given the London financial center the cold shoulder. Shein would not comment on the stock market plans or the targeted company valuation.