Thunder.com Rakuten January 19
Fashion retailer Shein was recently revealed to be seeking $3 billion in financing, valuing it at $64 billion.
Shein's investors include existing investors Abu Dhabi sovereign wealth fund Mubadala, investment firm Sequoia China (Sequoia China) and private equity fund General Atlantic.
Shein's valuation reached $100 billion in April 2022, which means that Shein's valuation has shrunk by 36% in less than a year. Throughout 2022, the valuation of many companies, including Tencent, Alibaba, and Meituan, has shrunk significantly, so Shein's valuation shrinkage this time is not very serious.
According to reports, Shein is a fast fashion brand founded in 2008, mainly selling women's clothing, accessories, shoes, bags, but also men's and children's clothing, beauty, furniture and other goods.
Due to the very low price, it has become the choice of many young people to buy clothes, and soon entered the international market, with customers in the United States, Japan, Australia, and Europe, and the exposure of the online community should not be underestimated. According to the news, Shein's annual revenue in 2022 is as high as $30 billion.
Shein's business model is not only fastfashion, but "ultra-fastfashion", with 6,000 new products on the shelves every day, quickly replacing the old with new products, and constantly stimulating consumers' desire to take out their wallets to shop.
Some media pointed out that SHEIN's use of dangerous chemicals in order to make a profit ignores the risks faced by the environment and users. In addition, the consequence of fast fashion culture is that about 150 to 200 tons, or 60 to 70 trucks, of textile waste are discarded, incinerated or sent to landfill every day worldwide.
The media has even suggested that global fashion brands must completely change their business model and make less, higher-quality, more durable, repairable and reusable clothing. Consumers can enjoy fashion while reducing unnecessary consumption and do not need to rely on fast fashion.
———————————————
Lei Di was founded by Lei Jianping, a senior media person, if reprinted, please indicate the source.