As per a recent financial filing by Shein, the fast fashion e-commerce company’s UK business generated $2.77 billion in sales in 2024, marking a significant 32.3 per cent increase from the previous year. This growth comes as the company continues to pursue an initial public offering (IPO) in Hong Kong.
Founded in China and now headquartered in Singapore, Shein has faced considerable obstacles in its long-running bid to go public. After unsuccessful attempts to list in both New York and London, the company has also struggled to get approval from China's securities regulator for an overseas IPO. These challenges are unfolding against a backdrop of rising tensions between China and the U.S.
Shein's UK arm, Shein Distribution UK reported a 56.6 per cent rise in pre-tax profit to $48.5 million from the prior year. The company highlighted several key milestones from 2024, including a successful pop-up shop in Liverpool, a Christmas bus tour that visited 12 UK cities, and the opening of two new offices in London and Manchester.
Known for its deeply discounted prices, constant promotions, and coupon offers, Shein has been gaining market share from competitors like ASOS and H&M. This trend has been fueled by surging inflation, which has led consumers to seek out more affordable fashion options.
Shein has also diversified its offerings beyond apparel to include everything from toys and craft supplies to home storage units. The company has benefited from customs duty exemptions on low-value e-commerce packages, which allows it to ship goods directly from Chinese factories to customers with minimal tariffs.
However, this advantage is now at risk. The US has already eliminated its ‘de minimis’ exemption for parcels under $800, and the European Union plans to remove its equivalent waiver on parcels under 150 euros. Britain is also reviewing its policy, with local retailers arguing that the current system gives online players like Shein and Temu an unfair advantage.
