Shein sales growth slows, testing $100 billion valuation

Its sales growth is slowing from the lofty heights of the pandemic, just as it faces mounting pressure to live up to a $100 billion valuation. Shein saw annual sales growth slow to around 60% in 2021, according to people familiar with the business. While sales growth in the high double digits still outstrips fast-fashion giants like Hennes & Mauritz AB or Inditex SA's Zara, Shein's slowdown comes as it's persuaded investors including General Atlantic that it is worth about $100 billion. "As one of the top online exporters in China, Shein's slower growth shows the increasing challenges suffered by the entire sector," said Wang Xin, head of the Shenzhen Cross-Border E-Commerce Association, an organization representing some 3,000 exporters. As part of its latest $1 billion fundraising round, Shein told existing investors including Tiger Global Management, IDG Capital and Sequoia Capital China that it's looking to list on a U.S. bourse in as soon as two years, people familiar with the company's thinking said. Shein's challenge in sustaining high growth reflects a wider issue for China's cross-border ecommerce sector, which in 2020 pulled ahead of traditional exporters to expand at 40% thanks to tax breaks and demand from Western consumers. "While Shein's growth slows, many smaller players are struggling to survive," Wang said.