RE: CEO comments to Bloomberg today17 May 2023 14:18
WolfofWarks - Shein is able to undercut everybody. You read about Shein 18 months ago. I suggest you do some more digging now. Shein are seen as a competitor to Next, Zalando, H and M.
Shein are seen as taking more and more market share.
Shein's Chinese billionaire owner uses algorithms in the software to pick up the latest fashion trends. Boohoo uses employees to go through social media to do this so which do you think is quicker hence the 10 days test and repeat.
Do some analysis yourself and you'll see how online fast fashion needs 55% gross margin to make a decent profit. Start with the Boohoo annual accounts from 2015 onwards to see how Boohoo had a 56% gross margin and how much profit this generated. Then how the Boohoo gross margin got slowly eroded each year to make less and less profit. The Boohoo gross margin is now 50%.
I dismissed Shein just like too many on here. I learnt the hard way never to dismiss Shein again.