Shein rejects Amazon “clone” talk ahead of closely watched U.S. listing
Shein is emphatically denying any characterization of itself as an Amazon "clone" as it prepares for its eagerly anticipated U.S. public listing later this year.
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| Shein rejects Amazon “clone” talk ahead of closely watched U.S. listing |
The Chinese-founded online retail giant, headquartered in Singapore, is poised to expand its product categories as it further establishes its presence in the U.S., with a particular focus on Generation Z and younger Millennial consumers. While Shein has diversified into areas such as electronics, sports, and home appliances, it rejects the notion of being an Amazon duplicate, emphasizing its responsiveness to customer demand and its flexibility in tailoring offerings to different markets.
Peter Pernot-Day, Head of Strategic Communications, U.K. and U.S., speaking at the World Economic Forum in Davos, clarified, "I don’t see us as an Amazon clone per se." Shein's success during the pandemic, marked by its affordable and extensive clothing lines, has positioned it to potentially surpass competitors like H&M and Zara owner Inditex, with estimated revenues of $24 billion in the first nine months of 2023.
The company's expansion aligns with heightened competition in the U.S. e-commerce market, leading up to its closely monitored 2024 initial public offering (IPO) with an expected valuation of $90 billion. However, recent reports suggest that investors, influenced by regulatory scrutiny and increasing competition, are offloading shares, potentially valuing Shein at $45 billion. Pernot-Day emphasized Shein's growth strategy, driven by a customer-led "on-demand" model, allowing the company to test small batches of products with users before full-scale launches.
In response to comparisons with Amazon, which recently adjusted fees for clothing merchants in a move towards Shein's low-cost territory, Pernot-Day underscored Shein's distinct model. While Amazon caters to a variety of product categories and allows third-party retailers, Shein remains committed to its fashion-first approach and on-demand production, seeking to distance itself from the "ultrafast fashion" label.
The company's sustainability practices, including the addition of thousands of new items to its app daily at an average cost of $14, are drawing attention amid concerns about its supply chain labor practices and environmental impact. Additionally, Shein's ties to Beijing are under scrutiny as China's internet regulator reviews its data handling and sharing practices, along with potential disclosures to U.S. regulators.
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