SHEIN, the fast fashion powerhouse, has been accused of raising prices on major products in expectation of its forthcoming IPO filing. Research data from Edited, shows that some of SHEIN’s prices have increased by more than a third, exceeding comparable increases seen with competitors such as Zara.
Contrasting prices on 1st June to those a year before, Edited established that in the US, SHEIN lifted the regular price of dresses by 28 per cent to a little over US $ 28. In the UK, the rise was 15 per cent, with dresses currently averaging £ 24. Across France, Italy, Germany, and Spain, prices rose by 36 per cent in comparison to the prior year.
Such price adjustments, in addition to bringing them in line with third-party brands lately added to the platform, are also planned ahead of SHEIN’s intended IPO. The IPO filing may involve increased costs and the requirement to stick to regional regulations, chiefly in the EU, supplementing further expenses.
SHEIN’s test now is to show that these price rises are sustainable, representing continued growth. Alex Romanenko, head of retail at Pearson Ham Group, shared to Reuters that if SHEIN can continue these prices, it could considerably enhance its valuation. Such price adjustments are also meant at improving profit margins before the IPO, subsequent to SHEIN’s triumphant market penetration with budget pricing.
