Has it surpassed H&M? SHEIN will make more than $2 billion in profit in 2023

  • The Financial Times reported that Chinese fast fashion company SHEIN made a profit of $2 billion (approximately 303 billion yen) in 2023.
  • This is higher than rival fast fashion retailer H&M.
  • Many of Seain’s customers are Gen Z and Millennials, who consider themselves to be environmentally conscious.

In 2023, it looks like we’ve consumed a lot of fast fashion.

According to the Financial Times, Chinese fast fashion company Xiyin, which is aiming to go public, achieved great success in 2023, making more than $2 billion in profits. The newspaper reports, citing four anonymous sources “close to the company.”

The figures mean Seein’s profits have more than doubled from $700 million in 2022, outpacing rival H&M.

H&M’s 2023 net income will be about $840 million, according to Barron’s. Zara, owned by Inditex, posted a profit of about $5.9 billion, trailing Seein and H&M. In both cases, net income is higher than in 2022.

For a generation of environmentally conscious shoppers, this is too much fast fashion — an industry that relies on cheap labor and takes a heavy toll on the environment.

According to a report by the United Nations Environment Program (UNEP), the fashion industry produces one garbage truck’s worth of textiles every second, which end up in landfills or being burned. It also accounts for up to 8% of global carbon dioxide emissions.

Among other things, Seein has been criticized for a lack of supply chain transparency, contributing to pollution, and violating labor rights.

Still, the typical SeeInn shopper is a Millennial or Gen Z. And despite the company’s issues with sustainability and labor practices, more than half of Seein’s customers prioritize “going green,” New Consumer and Coefficient Capital research reveals. Became.

The survey also found that 67% of Seein shoppers are willing to pay extra for products that are more environmentally friendly.

However, one of the biggest attractions of Sea Inn is its low price. In 2021, the average price of Seein’s products was $7.90, the Financial Times reported.

Business Insider reached out to Seein for comment, but did not receive a response.

The dual nature of Seain’s customers

This duality may be due to what economists call “stated vs. revealed preferences.”

As Virginia Tech economics professor Jadrian Wooten previously told Business Insider, this is the difference between “what we say we want” and “what we actually do.” refers to

Gen Z seems to be aware of this divide. A study by Sheffield Hallam University in England found that while Gen Z prefers sustainability, 90% of respondents said they would still reach for fast fashion.

Seein also understands its own appeal and consumers.

In 2023, it invited influencers to one of its factories in Guangzhou, China. This was to show people that Seein cares about fair labor practices and sustainability.

This PR campaign was not well received. Still, it showed that the fast fashion giants understand who their customers are and what they care about.

Seein also pledged to increase investment in third-party manufacturers and their employees and release more environmentally friendly collections, as Business Insider also reported.

It is unclear what impact these efforts are having. But for now, fast fashion is on the rise.

Source: BusinessInsider

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