Shein, the online fast-fashion retailer, has seen significant growth in its UK business, with profits at Shein Distribution UK doubling in the past year. Sales surged by 40%, reaching £1.5 billion, a figure that now matches that of rival Boohoo. The company, which recently acquired the Missguided online brand from Mike Ashley’s Frasers Group, is considering a £50 billion initial public offering (IPO) on the London Stock Exchange, potentially making it one of the largest fashion IPOs in recent history.
The growth comes as UK-based online fashion retailers such as Asos and Boohoo grapple with increased competition, not only from Shein but also from traditional high-street retailers like Primark, as well as newer platforms like Vinted and Depop.
Shein’s success can be attributed to its model of sending goods directly from China, benefiting from fewer taxes and lower costs. This has prompted UK retailers to call for changes in tax regulations, as Shein continues to capture market share. Meanwhile, the EU is advancing plans to impose customs duties on cheaper imports, which could impact Shein’s operations in the future.
Despite growing concerns over Shein's supply chain transparency and allegations of plagiarism, the company continues to expand globally. Founded by entrepreneur Chris Xu, Shein has managed most of its operations from China while selling all its products internationally. Now headquartered in Singapore, the company reached a valuation of $100 billion in 2022, making it the third most valuable startup globally.
“Shein has seen strong demand and customer loyalty in the UK, driving revenue and profit growth,” said a company spokesperson. With 33 UK employees, Shein continues to invest in its platform to enhance customer experience and maintain its rapid expansion in the competitive fast-fashion market.
