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Fast fashion giant Shein has reportedly raised prices on some of its core products ahead of its upcoming IPO filing.
Published:
2025/02/20
Fast fashion giant Shein has reportedly raised prices on some of its core products ahead of its upcoming IPO filing.
According to data from research firm Edited obtained by Reuters, prices of some Shein products have increased by more than a third of their original price, outstripping similar increases at rivals such as Zara.
Edited, which compared prices on June 1 with those a year ago, said the company raised the average price of a dress in the United States by 28% to just over $28.
Meanwhile, in the UK, the percentage increase reached 15%, with the average dress now costing 24 pounds. In France, Germany, Italy and Spain, it was 36% higher than the same period last year.
In addition to aligning its prices with those of third-party brands that have recently joined the platform, the move comes ahead of Shein's planned IPO, which could make it more expensive for the company to go public.
Filing for a listing could also mean Shein has to adapt to regional regulations and further increase expenses to comply with EU requirements.
Shein's task now is to prove that this pricing is sustainable and that it can maintain growth.
Alex Romanenko, head of retail at Pearson Ham Group, told Reuters that if the company can prove that "pricing at this level is feasible, then the valuation will increase significantly."
Romanenko added that the price increase is also aimed at improving profit margins before the IPO after the company successfully gained a large market share with budget pricing.
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