According to foreign media reports, Tang Wei, executive vice chairman of Shein, said recently that the company achieved a record profit in the first half of 2023, driven by the sales momentum in the United States, and only broke even in the same period in 2022.
In a letter, Shein told investors that the company’s profit reached a new high in the first half of this year. CNBC obtained a letter from Tang Wei, executive vice chairman, on Wednesday, which pointed out that compared with the second half of 2022, the sales volume in the first half of 2023 increased faster and the profit also increased.
Tang Wei wrote in the letter: “Compared with the almost balanced income in the same period in 2022, our net profit in the first half of the year set a record in the company’s history.” “In particular, our sustained development momentum in the US market has consolidated our leading position in this market.”
With its wide variety of low-priced dresses, croppetops and jeans, Shein has won the favor of generation Z (the generation born between 1995 and 2009) and millennials, and consolidated its leading position in the fast fashion field with fierce competition.
According to The Wall Street Journal, Shein achieved sales of $23 billion in 2022, and its current market value has reached $66 billion.
Tang Wei further elaborated the company’s marketing strategy, and said that since the beginning of 2023, the total value of goods sold in Brazil has tripled to nearly 100 million US dollars, with 6,000 active sellers.
It is understood that Shein announced the launch of its market in Brazil and the United States in May. The company also plans to open markets in Mexico as well as Germany, Spain, France and Italy.
In June, it was reported that China’s cross-border e-commerce company Shein had secretly submitted materials to relevant US authorities to apply for listing in the US. SHEIN responded to the rumor that the secret form was listed in the United States, and the news was not true.
Post time: Jul-31-2023