Space X, ByteDance Y shein. These are the three non-listed companies that are most desirable by large investors who take care of their IPO decisions. The first was founded by American Elon Musk, who is also the founder of electric cars. tesla, for the purpose of transporting people into space; the second was founded by the Chinese zhang yim and have social networking among other businesses TikTok; Founded in 2008 by the third, again Chinese Chris Xuemerged as the new big competitor of the world leader in textile fashion: Inditex. Also, it happens shein The joint venture uses TikTok as one of its primary marketing tools.
Shein was worth 100,000 million euros in April this year after the last capital increase. Two years ago it was worth 15,000 million. According to the Financial Times, a financial sector hangover that has created a drought in the investment market for venture capital funds has caused Shein’s value to plummet to 65,000 million in recent months. It manufactures in China from the Guangdong region to sell online to the rest of the world. In the United States, it has already surpassed Inditex in sales and H&M. just chain Primarkby Morgan Stanley, offers such cheap clothes. Just open Shein’s website to see his business strategies. A potential customer finds recurring subscription offers, discounts, and gifts in your first sales tool, your app. His marketing on TikTok consists of teaching teens how to unstoppably, jarringly open boxes with Shein presses. Disposable clothing in most cases. Without any financial knowledge or social memory, transparency is not one of the hallmarks of a company that knows little about the value chain and traceability of its products. Not to mention labor policies and taxation. Is your success simply due to the application of technology?
When asked if Inditex’s Shein (and other copycats) is interested, the answer is straightforward: “It’s not an obsession. We’re observing all the competition.” Just yesterday, during the announcement that Inditex is expanding its logistics investment in Zaragoza and opening a Zara superstore, the CEO said: Oscar Garcia Maceiras Throws balls after ‘El Periódico de Aragón’ question About Shein: “We have a very clear business model. It’s based on quality fashion, creativity, design, sustainability and customer experience.”
IESE professor, José Luis NuenoA specialist in the distribution industry, Shein’s Inditex, H&M or openness, global. “Inditex has one big advantage: its business model is very healthy. The numbers continue to amaze, and its omnichannel strategy is better prepared for the world we’re going to,” explains Nueno. 25.5% of the total sales of Inditex brands are currently made over the Internet. The target is to represent 30% by 2024. “A new phase begins with the bondage of social networks. The role of the designer and the frequency of collections will become more relevant. In order to achieve new goals, Inditex continues to achieve new goals. It is a very aggressive platform which is key. Inditex is an execution machine”, explains Nueno.
The Galician company is on track to surpass the record figures achieved in 2019 in 2022, with a turnover of 28,286 million euros and a profit of 3,639 million. It fell to 20,402 million and 1,106 million, respectively, through the pandemic in 2020. In 2021, turnover reached 27,716 million, profit of 3,243 million. Sales in the first half of this year have already surpassed last year’s sales by 24.5%. Its capitalization is close to 70,000 million Euros and is the most valuable company in the Ibex 35 ahead of the electricity company Iberdrola.
Maintaining these growth rates and ultimately increasing the value of the company are the main challenges since April 2 of this year, when Marta Ortega, president of Inditex, replaced Pablo Isla, who has held the position since 2011. The weight of his father Amancio Ortega is still present. He remains a board member and controls 59.29% of Inditex. 5.03 in the hands of the daughter of his first marriage, Sandra Ortega. There will be investors who will have a say in the market with a free volatility of 35 percent.