The Debrief

Fast fashion upstart Shein set the industry ablaze this month after reports it was seeking to raise $1 billion in funding at a $100 billion valuation, according to Bloomberg. Shein has upended fast fashion by making apparel at jaw-droppingly low price points and gaining market share, attracting major investors. But is it profitable?“Even if Shein isn’t profitable now, the thesis is that if enough people shop from the brand it would be able to leverage some of its operational costs … It could become a very lucrative business,” said Chen. Key InsightsWhile it is unknown whether Shein is profitable, the retailer drives ultra-high sales volume and razor-thin margins Shein is powered by a nimble, AI-driven supply chain, which allows it to produce a plethora of trendy items for an internet-obsessed young fashion audience almost instantaneously. The retailer’s app uses casino-like tactics and rewards to draw shoppers in and keep them buying, sharing and engaging. Despite its murky manufacturing process and reputation for amplifying rates of consumption, Shein is popular among young consumers — who purport to care about sustainability. Additional Resources The $100 Billion Shein Phenomenon Explained: Reports revealed that Shein is seeking over $1 billion in funding at a $100 billion valuation. BoF breaks down how the fast-fashion disruptor has built a global business that now rivals Zara and H&M. How to Compete With Shein: The Chinese fast fashion giant built an empire on unmatched speed-to-market and unbelievably low prices. To compete, others must play a different game. Join BoF Professional today with our exclusive podcast listener discount of 25% off an annual membership, follow the link here and enter the coupon code ‘debrief’ at checkout.  Want more from The Business of Fashion? Subscribe to our daily newsletter here. Follow The Debrief wherever you listen to podcasts. Hosted on Acast. See acast.com/privacy for more information.

In this weekly series,  BoF’s chief correspondent will go behind the scenes of the $2.5 trillion global fashion industry.  Fashion has the ability to move markets, shake up cultural norms and even transform society. But who — and what — are the forces driving major change? We’re answering that question on The Debrief, a new weekly podcast series from The Business of Fashion, where we go beyond the industry’s glossy veneer to understand how the fashion business is evolving, from the inside out. Hosted by BoF’s chief correspondent Lauren Sherman, The Debrief will be your guide into the megalablels, indie upstarts and unforgettable personalities shaping the $2.5 trillion global fashion industry. Each week, Lauren will take you through BoF Professional story —  in conversation with our correspondents and industry experts — to unpack the analysis and insights you need to know to navigate an industry undergoing rapid change.From the rise of direct-to-consumer disruptors, to the rapid consolidation of the luxury industry, to cultural shifts turning beauty upside down. BoF covers it all. Make sure to follow wherever you listen to podcasts to never miss an episode.  Join BoF Professional today with an exclusive 25% discount on an annual membership, follow the link here. Email Lauren with your feedback, ideas and tips at lauren.sherman@businessoffashion.com Hosted on Acast. See acast.com/privacy for more information.