The average price of a dress in four European Shein markets (France, Germany, Italy, Spain), for example, jumped 36% in the space of one year, according to the analysis of a British firm.
Chinese king of ultra fast fashion, known for its cheap clothes, Shein has just suddenly increased its prices. This is what a study by the British firm EDITED found, which compared prices on the platform on June 1 with those of a year ago. And some increases are significant, reaching up to more than 60% on certain products, reports the Reuters news agency.
For example, in the United States, Shein’s largest market in terms of sales, the Chinese company increased the average price of its women’s dresses by 28 percent over the past year, to around $28. If this average price remains lower than that of an H&M dress ($41) or a Zara dress ($80) across the Atlantic, the increase observed at Shein is higher than at competing brands, according to the data from EDITED.
Read alsoShein, Temu, Primark… Why buying cheap clothes is not necessarily a good deal
Increase revenues and profits
Also in the United States, the largest price increase affected shoes, with a pair of shoes sold on average for $41 today, compared to $25 a year ago, or +61%. A jump partly explained by the arrival of new brands on Shein, such as the sneaker brand Skechers, which sells shoes from $32 to $174 on the Chinese platform. If we take the average of prices in four European Shein markets (France, Germany, Italy, Spain), the increase in dress prices reaches 36% (from 22 to 30 euros). On the British Shein website, a dress today costs an average of 24 pounds ($31), or 15% more than a year ago.
For Shein, such an approach has the advantage of increasing its revenues and profits before its IPO, according to trade experts. Scheduled for this year, it could take place in London, with a valuation of 60 billion euros. Thus, the Chinese company – whose sales will peak at $50 billion this year (47 billion euros), an increase of 55% compared to last year, according to Coresight Research – will have to face higher costs. high that a listed company encounters. Furthermore, it will have to comply with new European Union requirements on online platforms, which could increase its expenses and reduce its margins. Contacted by Reuters, Shein declined to comment.
