The news: Chinese fast-fashion retailer Shein is in talks with potential investors for a funding round that could value the online-only retailer at about $100 billion, per Bloomberg.
More on this: Shein’s sales have soared throughout the pandemic thanks to consumers’ evolving behaviors, its partnerships with creators and celebrities, and its unique business model by which it steadily pumps out small batches of items every day, then ramps up production based on their popularity.
Growth opportunities: Shein has benefited from leveraging low-cost suppliers in southern China to sell on-trend items for as little as $3—a significantly low price point even compared toother popular fast-fashion brands, including Zara, H&M, and Forever 21.
The sustainability issue: The potential massive funding round is a sign that there are limits to consumers’—and investors’—growing interest in sustainability.
Why it matters: While many lower-priced retailers are turning to stores to boost sales and attract new customers, Shein’s success demonstrates the value of effective marketing and an efficient supply chain.
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