4 predictions for the future of Shein

Shein’s expanding its US distribution centers in an effort to expand its US market. That’s good news for US customers, who currently wait up to 15 days for deliveries from the Chinese brand.

Shein-hulk: The fast-fashion giant is already worth an estimated $100 billion, claiming more than a quarter (28%) of the US fast-fashion market. Here are our analysts’ bold predictions on where Shein may be headed next:

Expect Shein to diversify. Jasmine Enberg predicted Shein will sell higher-end goods than its current fare and move into new industries.

• Faster delivery from US distribution centers will offer the company leeway to experiment with its price points.
• “Expanding further into premium goods could really help [Shein] broaden its audience outside of Gen Z,” said Enberg, weighing in on our “Behind the Numbers: Reimagining Retail” podcast.

IPO? That’s a no. Sky Canaves doesn’t expect Shein to IPO in the US.

• US and Chinese regulations combined with a weakened market make Shein’s best interest remaining private.
• “Shein is such a secretive company,” said Canaves. “I would be very surprised to see the company open itself up to so much public scrutiny.”

Personalized manufacturing is on its way. The model would allow Shein to deliver highly customized goods directly to consumers.

• Shein has the resources to champion custom goods. On-demand fashion is often considered a feature of slow fashion. Shein could change that by speeding up customization and delivery times.

The regulators are coming. Environmental regulations in the US and EU could be some of Shein’s biggest hurdles.

• “Shein has said that it's cleaning up its act, but the reality is that its business model just really isn’t sustainable,” said Enberg.

Listen to the full podcast.

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