Shein reportedly ups prices amid IPO battle

Fast fashion giant Shein is believed to have hiked up its prices on some core products ahead of its impending IPO filing.

According to data from research firm Edited, seen by Reuters, some of the retailer’s prices have been raised by as much as over a third of their original cost, exceeding similar upticks of rivals such as Zara.

Comparing prices on June 1 to those from a year earlier, Edited said that in the US the company had raised the average price for dresses by 28 percent to just over 28 dollars.

In the UK, meanwhile, this percentage increase came to 15 percent, with dresses now costing on average 24 pounds. Across France, Germany, Italy and Spain, the increase was 36 percent on the year prior.

Next to aligning its prices with those of third-party brands being added to the platform recently, the move also comes ahead of a planned IPO for Shein, which could result in higher costs for the company being publicly listed.

The filing could also see Shein having to adapt to regional regulations, imposing further expenses in order to fall in line with EU requirements.

The task for Shein now is to show such pricing can stick, proving that it is able to sustain growth.

Speaking to Reuters, Alex Romanenko, head of retail at Pearson Ham Group, said that, if the company can demonstrate that “these prices stick then the valuation increases significantly”.

Romanenko added that the price increases are also aimed at boosting profit margins prior to the IPO, after the company managed to gain a significant market share with budget pricing.