Fast fashion retailer Shein has predicted its revenue will more than double to reach almost $60bn (£49.8bn) by 2025.
The lofty revenue projection comes as the Chinese fashion giant weighs up a potential blockbuster IPO this year and was first reported by the Financial Times.
Shein reported annual revenue of $22.7bn (£18.8bn) last year and is projected to achieve annual revenue of $58.5bn (£48.6bn) in 2025.
This 2025 revenue target would overtake the combined annual sales of both H&M and Zara’s owner Inditex.
Profits are also expected to increase to $7.5bn (£6.2bn) in 2025 as Shein plans to launch more premium product ranges to target higher-spending shoppers.
The Chinese retailer also said its gross merchandise value is anticipated to jump 174% from last year to $80.6bn (£67bn) in 2025.
The newspaper reported that Shein “must significantly alter sales patterns to hit its revenue goals, in particular by gaining more repeat customers and beginning to sell more diverse and expensive clothing lines”.
Morning Consult’s retail and ecommerce analyst Claire Tassin told the Financial Times: “Shein’s popularity with Gen Z is a double-edged sword.
“Gen Z is more open to new apparel brands than any other generation, which means it’s easier to win their attention but harder to retain their loyalty.
“The same factors that made Shein popular with Gen Z will also make it easier for the next trending brand to grab their attention.”
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