Investors are now focused on how fast-fashion pioneers Zara and H&M are responding to the current market leader, Shein. A lawsuit in July for intellectual property infringement alleged Shein uses artificial intelligence and a proprietary algorithm to scrape the internet for design ideas, sometimes resulting in direct plagiarism.
With Zara-owner Inditex and H&M set to disclose their most recent sales results, investors will be focused on one major question: how are the two fast-fashion pioneers responding to the current market leader, Shein? Shein has a huge valuation and is primed for an IPO. With sales almost entirely online, the retailer generated about $23 billion in global revenue in 2022, according to research firm Coresight. Shein accounted for nearly one-fifth of the global fast-fashion market in 2022, outpacing Zara and H&M. Shein's low prices - $5 t-shirts and $10 sweaters - also draw shoppers who might have otherwise shopped at clothing discount stores