Shein's Slump Exposes the Squeeze on Fashion's Middle Market

Key facts

• Shein's valuation dropped from nearly $100 billion in 2022 to about $26.5 billion at its recent IPO, a decline of almost 75%.
• Shein's first-quarter revenue growth slowed to 1.1%, U.S. sales dropped 14.3%, and it swung from a $395 million profit to a $99 million loss, including a $328 million fair-value accounting charge.
• Shein launched in 2008 in Nanjing, China, initially focusing on women's apparel and wedding dresses.
• Shein's listing prospectus said it offers more than 2 million distinct items, with 4,700 new pieces added daily, regularly priced under $20.
• The U.S. eliminated the duty-free exemption for low-value packages from China, and Europe introduced a €3 charge on low-value e-commerce shipments.
• Since 2019, overall consumer prices rose 26%, but apparel prices increased just 6%, often by cutting corners on materials.
• Synthetics make up roughly 69% of global fiber production, and Shein's synthetic fabrics account for about 89% of what it sells, according to a 2025 report from Changing Markets.
• Express filed for bankruptcy in 2024 after years of declining sales, citing competition from cheaper fast-fashion rivals.