An overall slowdown in fast fashion growth is catching up to Shein. The ecommerce retailer experienced five consecutive months of US slowing sales according to credit and debit card data. Shein maintains its market dominance, with 30% share in October, as rival fast fashion retailers H&M and Zara experienced in-line sales declines.
The sales slowdown is a huge reversal for a company that grew double digits in the first five months of 2022. Before that, Shein unseated H&M and Zara during the pandemic to become the largest US fast fashion retailer by sales. Since then, Shein succeeded in taking sales from larger brick-and-mortar rivals. However market forces are catching up. Premium brands are winning as more price conscious consumers shift their spending in the face of inflation. Shein and fast fashion in general could be some of the first victims of consumer spending challenges.
To learn more about the data behind this article and what Earnest Research has to offer, visit https://www.earnestresearch.com/.
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