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Shein has reportedly set plans to nearly double its revenue to almost $60bn ($50bn) by 2025, whilst telling investors it is readying for an IPO later this year.
According to a presentation seen by the Financial Times, the online fashion group said it was targeting full-year revenues of $58.5bn (£48.8bn) in 2025, up from the $22.7bn (£18.9bn) reported last year.
The Chinese company also predicted its profit will grow to $7.5bn (£6.3bn) in 2025, through targeting higher-spend consumers with new premium product lines whilst reducing warehouse and delivery costs.
In addition, it projected that gross merchandise value would grow to $80.6bn (£67.2bn) in 2025, marking a 174% increase from last year, reports have said.
The newly unveiled targets come as the group plans to launch “one of the largest-ever listings of Chinese companies in the US” this year, according to the FT, amid its increasing popularity with Gen Z consumers.
Two investors confirmed the content of the presentation to the FT, adding that the presentation revealed Shein must “significantly” alter sales patterns to hit its revenue goals. This includes securing more repeat customers and selling more diverse and expensive lines.
Last month, the FT reported that Shein was in talks to raise $3bn (£2.5bn) at a reduced valuation of $64bn (£53bn). It was valued at just over $100bn (£83.3bn) in its latest funding round in April 2022.
Shein is also considering becoming an online marketplace platform, in a move that would enable third-party merchants to sell directly to customers, according to a memo seen by The Wall Street Journal last December.
The move would see the online retailer expand its business beyond selling its own brand apparel.
According to the paper, the memo said: “The marketplace platform makes available a range of additional merchandise and shipping options, and we expect it to result in increased customer engagement and satisfaction.”
