In a move reminiscent of SHEIN’s approach, H&M is drastically reducing the prices of some tops to US $ 1.70. Initially priced at US $ 4.99, one of the crop tops in black and white received a markdown of nearly 70 per cent. These price reductions seem to align with SHEIN’s strategy of vying for customers by offering the most competitive prices available.
SHEIN, the Singapore-based online retailer, gained popularity during the pandemic as customers sought affordable options, with single-digit price tags on numerous items. Emerging as a prominent fast-fashion retailer, SHEIN achieved a valuation of US $ 100 billion last year, surpassing H&M and Zara combined (though the valuation has now decreased to US $ 66 billion, as reported by The Wall Street Journal).
Despite environmental and labor concerns, SHEIN remains popular, with consumers spending an average of US $ 100 per month, surpassing the average US women’s spending by 60 per cent.
SHEIN is the most searched apparel retailer on Google and one of the top downloaded shopping apps in the US, according to UBS data. H&M is experiencing a rebound with its successful summer collection, reporting a 10 per cent sales growth compared to the same period last year.
