Shein’s British business saw sales surge to £2.05 billion in 2024, a 32.3 per cent increase from the previous year, while pre-tax profits for its UK arm, Shein Distribution UK Ltd, climbed 56.6 per cent to £38.25 million.
The UK is now the fast-fashion giant’s third-largest global market, behind the US and Germany, as the company pursues an initial public offering in Hong Kong.
Founded in China and headquartered in Singapore, Shein has faced a challenging path to listing.
Previous attempts in New York and London encountered criticism from US and UK politicians, and it failed to secure approval from China’s securities regulator for an offshore IPO amidst increasing US-China tensions.
Shein said it benefited from the opening of two new offices in Kings Cross and Manchester, the launch of a pop-up shop in Liverpool and a Christmas bus tour across 12 cities in the UK.
Known for heavily discounted prices, the brand employs constant promotions and rewards to encourage continuous consumer purchasing.
Shein has taken market share from retailers like ASOS ASOS.L and H&M HMb.ST as surging inflation dented consumers’ spending power, driving them to hunt for bargains.
Shein has also broadened its offering beyond fashion — the UK site sells £7.99 ($10.84) dresses and £15 ($20.36) jeans, as well as everything from toys and craft supplies to storage units.
Shein’s business has benefited from customs duty exemptions on low-value e-commerce packages that allow it to send goods directly from factories in China to shoppers’ doorsteps largely tariff-free.
But that perk is on its way out, driving Shein’s costs — and prices — up, particularly in the US, where imports from China are now subject to steep tariffs.
US President Donald Trump’s administration has scrapped its “de minimis” exemption for parcels under $800, and the European Union plans to remove its equivalent duty waiver on e-commerce parcels worth less than 150 euros.
The Labour Government has said it is reviewing a similar policy in the UK, amid concerns it is giving retailers such as Shein and Temu an advantage over rivals.
