Key facts
- Shein's UK revenue reached £2.58 billion in the past year.
- Shein's UK sales increased by 26% year-on-year.
- Shein's pre-tax profits in the UK rose 18% to £45.2 million.
- Shein employed 113 people in the UK, up from 91.
- Shein paid £11.2 million in UK corporation tax.
- Shein's global parent group was valued at over $26 billion upon its Hong Kong listing.
Shein, the China-founded online fast-fashion retailer, has surpassed its British competitor Asos in UK sales, reporting a 26% increase to £2.58 billion for the past year. The company's UK division also saw an 18% rise in pre-tax profits, reaching £45.2 million, as its workforce grew to 113 employees. Shein's global parent group was valued at over $26 billion following its listing on the Hong Kong stock exchange last month.
Marketing efforts, including partnerships with music festivals and pop-up shops, contributed to Shein's strong trading figures. This performance is likely to intensify pressure on the UK government to reform the 'de minimis' rule, which exempts low-value goods from import duties. This rule has been instrumental in the growth of online retailers like Shein and Temu, allowing them to ship goods valued at £135 or less directly to UK consumers without customs charges.
Concerns about Chinese retailers dumping goods in the UK have grown, particularly after the US revoked its own de minimis exception for Chinese-made goods. The EU is also phasing out similar exemptions. While former UK chancellor Rachel Reeves has stated her intention to abolish the UK's rule by 2028, retail industry leaders are urging for faster action. Shein's recent Hong Kong listing was valued lower than anticipated due to investor concerns about global regulatory changes. The company, founded by Chris Xu, operates primarily from China but sells globally, having moved its headquarters to Singapore in 2022 and begun manufacturing in countries like Turkey and Brazil. Shein has also implemented stricter supplier policies to address concerns about forced labor.
In its first results since its public listing, Shein reported a 67% drop in group quarterly profits to £173 million, citing higher oil prices and freight rates linked to the war in Iran.