Fast fashion retailer Shein is worth as much as SpaceX

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Shein just secured a mammoth $100 billion valuation in its most recent funding round, according to the WSJ. The fast fashion brand is best known for turning that matching ensemble you saw on TikTok into an affordable dupe in three days, then teaming up with influencers like Addison Rae to promote it.

The $100 billion valuation reported by Shein means…

  • It’s worth more than H&M and Zara combined.
  • It’s worth as much as SpaceX and $5 billion more than payments giant Stripe.

In other words, it might be time to tear up the narrative that young consumers are opting for sustainable clothing over fast fashion, which has been criticized for the environmental impact of its heavy use of plastic and petrochemicals.

The backstory: Founded in 2008, the online retailer (it doesn’t have a single store) was a small company based in Nanjing, China, specializing in wedding dresses. But then it expanded its attention to women’s fashion and had a better pandemic than tie-dye, surpassing rivals – Forever 21, H&M and Zara – in sales this summer, according to Earnest Research. It also increased its valuation from $15 billion to $100 billion in the space of 20 months.

Look forward…Morgan Stanley predicts Shein could generate $20 billion in revenue this year, making it the world’s fourth-largest apparel company by sales.—JW

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