In a strategic move, Shein is set to introduce its first branded credit card globally, aiming to bolster international expansion before a potential IPO.
- The collaboration with Mexican fintech Stori will reward customers with points on all purchases, and double points on clothing orders.
- Notably, Shein’s sales growth has decelerated to 23% in the first half of the current year, a marked reduction from last year’s 40% increase.
- Additionally, the company’s profit has seen a drastic fall of over 70%, despite sales exceeding £13.8 billion.
- Preparations for a planned initial public offering on the London Stock Exchange are underway, with prominent financial institutions enlisted as bookrunners.
In a strategic move to boost its international presence, Shein has announced the launch of its first branded credit card worldwide, leveraging a partnership with the Mexican financial technology firm, Stori. This innovative collaboration is set to offer a rewarding customer experience by providing points on every purchase made via its platform and doubling the rewards for orders specifically involving clothing. This development reflects Shein’s commitment to enhancing customer engagement amidst its international expansion efforts.
The decision comes at a significant time as Shein faces a slowdown in sales growth. The company registered a growth rate of 23% in the first half of this year, significantly trailing the 40% jump recorded in the previous year. This downturn signals challenges in maintaining the rapid ascent the company experienced prior.
Moreover, Shein’s financial health has also encountered headwinds, with profits plummeting by more than 70%, settling just below £308 million as reported by The Information. Despite these challenges, sales have managed to surpass £13.8 billion, indicating robust consumer interest albeit at compressed margins.
In a bid to bolster financial confidence and prepare for future growth, Shein has engaged in informal discussions with potential investors this month. This step is part of the retailer’s broader strategy as it eyes an initial public offering on the London Stock Exchange. To this end, Shein has appointed Barclays and UBS as bookrunners, demonstrating its resolve to navigate the complexities of going public.
The preparation for its IPO is further underscored by the involvement of major financial entities such as Goldman Sachs Group Inc, JPMorgan Chase & Co, and Morgan Stanley, all working in concert to streamline Shein’s public listing process.
The impending launch of Shein’s credit card illustrates both a strategic pivot towards enhanced customer engagement and a necessary step amidst financial recalibrations for its planned IPO.
