Shein's first-half profit hit a record high, and the Brazilian platform's GMV reached nearly US$100 million

It is learned that according to CNBC, Shein Executive Vice Chairman Donald Tang issued a letter to investors on July 26. According to documents obtained by CNBC, Shein's profits achieved record growth in the first half of 2023, and Shein's sales growth accelerated in the first half of the year compared with the second half of 2022.

The document shows that Shein's market model has also made good progress. Its platform model sales GMV in Brazil has reached nearly US$100 million, accounting for one-third of its total sales GMV in Brazil, which has tripled since the beginning of 2023. In addition, Shein's Brazilian platform already has 6,000 active sellers.

Shein announced the launch of its marketplace model in Brazil and the United States in May and in Mexico in June. However, the letter to investors did not provide marketplace sales data for the United States and Mexico.

According to reports, Shein will launch the platform model in more markets, including the UK, Germany, France, Italy, Spain, and Poland. In addition, Shein will also expand its product line to attract more brands of home appliances, household goods, etc.

In 2022, Shein's sales were $23 billion, its profit was $750 million, and its current valuation is $66 billion. In a letter to investors in February this year, Shein set a goal of increasing its profits tenfold and exceeding the combined sales of H&M and Zara in the next three years. However, since reaching a valuation of $100 billion in April 2022, Shein's valuation has shrunk by nearly a third.

At the same time, rumors about Shein's IPO in the United States continued, and there were even reports that Shein had secretly submitted an application for listing in the United States. Although the official caliber has always denied it, the increasing scrutiny by the US officials seems to have indirectly verified Shein's move to go public in the United States.

Shein is currently facing increasing scrutiny of its trade practices and supply chain in the United States, and has been repeatedly accused of intellectual property infringement and the use of forced labor. In June, the U.S. House of Representatives released a report accusing Shein of using the minimum tariff threshold to avoid taxes and evade scrutiny.

Editor✎ Ashley/

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