Shein Files for U.S. IPO
cnbc.com
cnbc.com
I think the IPO will do fine, because the stream of consumers worldwide is massive and so there's a sustaining business model here, at a significant externality/cost to everything else.
Their clothing never lasted as long as clothing from "older" companies, but that's because most of them - especially in the early years of H&M - still were in the business of making things last a lifetime or at least 20+ years. H&M recognized that even if our cloth can be used longer, most of us switch our wardrobe every 5-10 years and made their clothing accordingly.
It's in no way comparable to Shein or kik (don't know if they exist outside of Germany), which make fast fashion in both senses: They quickly replicate the trends, but also make their clothing so cheap that you are lucky if you can wear them a year. And it seems even half a year is impossible with some of their newest things, from that I've read. These companies are in the business of producing garbage, which can be worn on the way between factory and landfill, nothing more.
no doubt that some older pieces are lasting quite well - at this point some are outlasting more recent ones. not limited to h&m, quality seems to be getting pulled down.
brands that were once bought because they would last for 5+ years are still making sales based upon that reputation, but the products aren’t matching.
Another thing most people can't see is how Shein is good at logistics. Just wait a few years and you'll see in how many other verticals they will operate.
Big business. They will completely disrupt fast fashion.
I bet most people here buy fast fashion or even worst clothes for the environment, but as they are buying it in Zara or H&M, they feel they are less worst than Shein, but it's all the same... Despite that you pay more.
But it’s all moot - people are obsessed with the dopamine from buying things whether it’s necessary or quality or not. Sigh.
You're right they are a financial success story. 66 Billion evaluation is extraordinary to me and just highlights how much demand there is.
Anecdotally, I have heard that there is three towns where a predominant amount of Shein clothes are made and while people are free to leave, they’re paid in “company bucks” akin to company towns in the late 1800s/early 1900s US.
If you're buying a t-shirt for under $20, forced labor is probably somewhere in the supply chain.
The expiration date on clothes is so short that now transporting it by boat is not too slow, and they have to take plane.
(writing this post, while wearing 4yo jeans, and 5yo t-shirt)
Fast fashion gets a bad rap because of the assumptions about consumer behavior and labor. Almost all clothing is terrible for the environment and for the people manufacturing it, anyway. I have many H&M items that are nearly a decade old and are still wearable.
https://www-srf-ch.translate.goog/sendungen/kassensturz-espr...
Why is this line used everywhere in the news? What is the consequence of getting someone on the record for speculating the value of an IPO? It's the most frustrating and lazy part of journalism.
Not worth it just to appease some journalist.
Keep in mind that journalism in the US is itself a very underpaid profession that mostly fails to pay a living wage. Journalists work on tight deadlines with minimal support and don't always have the luxury of doing deep investigative reporting. They might only have a few hours to get a story ready, and if no nameable sources are willing to come forward, well, maybe that anonymous one is better than nothing.
Source: anecdotal only, former journalism major, knew writers in the industry.
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Edit: not defending the practice, just saying it happens. Sometimes there are just lazy or plain bad journalists too. I don't know this writer and won't speculate, but in general it's not unusual to cite anonymous sources.
If we want to discourage that practice, it's not something an individual journalist can fix (short of cultivating long term sources). Most sources have no protection, and even real whistleblowers (like Snowden or Reality Winner) who are supposed to have protections are just left hung out to dry. For a source, talking to the media has a lot of risks and almost no upsides.
I used to wear "skater hoodies", those brand name things, once I went into a Patagonia store and bought a hoody (once I had some money, had a job). For the first winter in my life I actually felt warm. I never looked back since.
I still have that hoodie, it's probably ten years old now. Still looks great.
Over the years however, I have accumulated a few different jackets and sweaters from them so I can mix it up a bit.
I figured if I was being cheaper quality, less fashionable clothing I'd probably have purchased 5-10x the amount of actual material by now. Some of the items I own have gone and come back into fashion too.
On the flip side, some of my jackets have a nice worn in look to them :)
They skirt around paying import duties and tariffs that equal to around 34% of the value of the goods. The U.S. should be getting more money from them. "Ecommerce companies are exempt from paying tariffs on products with a retail value less than $800, if they are shipped directly to individual customers" (https://www.businessoffashion.com/news/sustainability/shein-...)
Also, if their IPO prospectus does not include that a change in trade law can affect their business model as a risk, Shein is a fraud.
> Numerous lawmakers, including 16 Republican attorneys general, have called on the SEC to ensure Shein isn’t using forced labor in its supply chain before it’s allowed to start trading in the U.S.