"Shein's model is uncontrollable ," explains Pau Almar, an expert in textile strategy who has worked for the main retail giants. This apparent indomitable role of the company also comes with another: that of disruptive. Because Shein , despite the many shadows, has completely moved the industry. Proof of this are its numbers, but also its impact in a society that, despite being more environmentally aware than ever, also dedicates itself to the company's attractive model: fashion at ridiculous prices . Because Shein is a gear made up of precise edges that go from its rapid production model to its enormous weight on social networks, especially on TikTok or Instagram —on this last platform alone it has 26.8 million followers. Who's who in the textile universe: Shein, the unknown Chinese giant that has captured generation Z and now must redefine the formula that has led to its success But all this omnipresence has meant that the fast fashion brand has been forced to reformulate its strategy in view of a potential IPO in 2024.
Before, yes, you will have to face many obstacles. Among them are accusations of plagiarism in their designs; the working hours that rise to 75 hours per week or the information that indicates that their clothing violates European environmental regulations. Can Shein's magnitude take him down? "Shein's relentless growth leaves little room for competition," says the Jamaica Mobile Number List report that Bank of America dedicates to the textile group. Shein, for whom there are only estimates of its figures, was valued between 65,000 and 85,000 million dollars in October . It represents 10 times more than the combined capitalization of Zalando, Asos and Boohoo. With all this, it should reach 30,000 million dollars in business volume in 2022. If it does so, it would be close to the estimates that Goldman Sachs makes, for its part, for Inditex and which, even within Galicia, are already historic.
However, the investment idyll that Shein enjoyed a few months ago seems to have lost steam . According to a Bloomberg report , investors seeking to sell the company's shares were finding offers with a 30% reduction in the company's valuation in April 2022 – $100 billion. How long will Shein be able to move freely? The notoriety that Shein has been gaining has also left her more exposed than ever. Now, the challenges she must face are not minor and they all stem from one question: how long will she be able to continue to roam freely. Given this, Pau Almar goes further and believes that the biggest challenge for the Chinese giant lies in knowing how long the ease with which its garments move will last. " Crossborder facilitates this situation: it does not undergo any quality control," he explains.