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· Posted on
May 3, 2024

Shein Australia hauls in a mega fortune as it triples profits with trinket prices

Shein Australia reported $978 million in revenue for 2023 and it tripled its profits to more than $10 million last year.

What's the key learning?

  • Shein’s main customer base in Australia is families with children under 16, the demographic mostly affected by affordability crisis.
  • During these difficult times, it seems like many Australians are willing to prioritise lower costs over their ethical concerns.
  • Shein knows what its customers want and keep feeding them more of it.

👉 Background: Shein is the Chinese-based fast-fashion retailer that lists up to 10,000 new items of ultra-cheap clothing every single day.

👉 What happened: Shein only launched in Australia 3 years ago but it has already managed to gain 800,000 monthly Australians to shop on it Shein each month, according to Roy Morgan. Now, Shein Australia reported $978 million in revenue for 2023 and it tripled its profits to more than $10 million last year.

👉 What else: Shein has been criticised for its labour practices, for its impact on the environment and for its stealing designs from independent labels - but it hasn't seemed to affect its sales so far.

What's the key learning?

💡A well-targeted value proposition can help overcome almost all other obstacles.

💡 Since the cost-of-living crunch, affordability has become the biggest factor in Australians’ purchasing decisions, according to Australian Ethical Consumer Report.

💡 So despite the criticism, Shein continues to target budget-conscious shoppers with its Shein hauls and squillions of new products, because it knows that people affected by cost of living will still probably turn to Shein hauls first.

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