At the end of 2019, some media revealed that SHEIN was negotiating a new round of financing exceeding US $ 500 million.

Editor’s note: This article is from the WeChat public account “I knew it early” (ID: ipozaozhidao) , author Uncle C.

According to the IPO, the domestic fast fashion export cross-border e-commerce brand “SHEIN” has contacted investment banks and plans to complete its listing in the United States as soon as 2020.

Public information shows that SHEIN is a cross-border fast-fashion brand focusing on women’s clothing. It has entered North America, Europe, Russia, the Middle East, and India. Wait.

Fast fashion cross-border e-commerce brand

Before the creation of a free brand, SHEIN was mainly engaged in cross-border sales of tail goods, and then began to build brands overseas with the help of “Made in China” and completed the transformation and upgrade of the supply chain. According to official data previously disclosed, SHEIN’s new model takes only two weeks from design to finished product, logistics in the main market arrives in less than one week, and more than 10,000 new SKUs are developed throughout the year.

As of now, SHEIN has 2 self-managed international sites SHEIN, ROMWE, and 16 small language sites, IOS mobile terminal, andriod mobile terminal. Among them, SHEIN APP is among the top ten among shopping apps in Germany, France, and the Middle East.

From the perspective of product play, SHEIN mainly chooses to cooperate with Facebook, Twitter, Instagram and other platforms to carry products for red people, supplemented by pop-ups, pop up store sales, red people activities, fashion week and other forms of promotion.

It is worth mentioning that the company’s official website shows that the current number of SHEIN members has exceeded 100 million, and the annual sales growth rate since 2012 has exceeded 100%, and the GMV in 2019 has exceeded 20 billion.

SHEIN ’s domestic industrial and commercial entity, Nanjing Leadtime Information Technology Co., Ltd. ’s business information shows that its shareholder list includes the top domestic VC IDG capital, private equity giant Jinglin Investment, and Japan ’s established VC-based Jifu Asia. Acquisition of competitors such as ROMWE, MAKEMECHIC.

A report jointly issued by Bain Consulting and Google in 2019 indicates that the e-commerce penetration rate in the Middle East’s six core Gulf countries (GCC) regions is less than 3%, but the region is one of the regions with the best coverage worldwide First, the potential for e-commerce development is huge.

Fast fashion cross-border e-commerce brand

In fact, in addition to SHEIN, domestic cross-border e-commerce players also include Jollychic, Fordeal, etc., and the financing rounds of these two companies have reached the C + round, and each has a strong lineup of investors.

Among them, Jollychic, who also started from women’s fashion, received a new round of financing of 65 million U.S. dollars from the U.S. technology giant G42 Group in August 2019. Prior investors include Sequoia Capital, Junlian Capital, Lanxin Asia, CDH Investment, Dachen Venture Capital, etc.

Fordeal, which positions all categories of overseas e-commerce companies, received a new round of tens of millions of dollars from Heyu Capital in early 2019. Prior to this, investors include Gao Capital, Shun Wei Capital, and Yuan Zheng Capital, GGV Jiyuan Capital, Yanfeng Evergreen, etc.

Therefore, no matter in terms of financing scale or investor background, the earliest established SHEIN has no advantages. At the end of 2019, there were media reports that SHEIN was negotiating a new round of financing of more than 500 million U.S. dollars, and the post-investment valuation could reach 5 billion U.S. dollars, but there is no exact news so far.

It can be said that under the situation that the competition in the e-commerce market in the Middle East is becoming increasingly fierce and the cost of warehousing and logistics is relatively high, SHEIN seeking a new round of financing and even listing in the United States will have to make a choice or will only Expect capital markets and investors to impress its story.