Shein’s UK sales hit $2.8 billion in 2024 as IPO plans gather pace

Shein’s British arm reported a sharp jump in sales last year, highlighting the online fast-fashion giant’s growing footprint in one of its key markets ahead of a long-awaited public listing. According to a company filing cited by Reuters, Shein Distribution UK Ltd generated sales of £2.05 billion ($2.77 billion) in 2024, up 32.3 per cent from the previous year. Britain is now Shein’s third-largest market after the United States and Germany.

Founded in China and now headquartered in Singapore, Shein has been trying to go public for several years. It first pursued a listing in New York, then explored London, but regulatory and political hurdles stalled both attempts. Reuters reports that Beijing’s securities regulator withheld approval for the offshore IPO at a time of heightened tensions between China and the US. The company is now working towards an initial public offering in Hong Kong.

Profit surge and brand push

Shein’s UK pre-tax profit jumped 56.6 per cent in 2024 to £38.25 million ($49 million) from £24.4 million the previous year. The filing noted several milestones, including a pop-up store in Liverpool, a Christmas-themed bus tour across 12 cities, and the opening of new offices in London’s Kings Cross and in Manchester.

Known for its ultra-low prices and constant promotions, Shein has been chipping away at the market share of rivals such as ASOS and H&M. Its product range has expanded well beyond clothing, with the UK website now selling items from £7.99 ($10.84) dresses and £15 ($20.36) jeans to toys, craft supplies and home storage units.

Policy shifts threaten cost advantage

Shein’s global model has benefited from customs duty exemptions on low-value e-commerce packages, allowing goods to be shipped directly from Chinese factories to customers’ doors with minimal tariffs. But that advantage is narrowing.

As per Reuters, the Trump administration in the US has scrapped its “de minimis” rule that waived duties on imports worth under $800, hitting Shein with higher costs. The European Union is also set to remove its duty exemption on parcels under €150. Britain is reviewing its own policy amid complaints from domestic retailers that firms like Shein and fellow Chinese platform Temu enjoy an unfair tax edge.

(With inputs from the agencies)