Online retailer Shein has seen a significant increase in sales in the UK, surpassing its British competitor Asos. In the last year, Shein's UK sales rose by 26%, reaching £2.58 billion. This growth comes as the company’s global parent group was valued at over $26 billion (£19.6 billion) following its recent listing on the Hong Kong stock exchange.
Financial Performance
Shein's pre-tax profits also saw an increase of 18%, totaling £45.2 million. The number of employees in the UK has grown from 91 to 113, primarily in sales and marketing roles. The company paid £11.2 million in current tax, primarily corporation tax, up from £9.6 million the previous year.
Marketing Strategies
The surge in sales has been attributed to various marketing initiatives, including:
- A partnership with the Wireless and Creamfields music festivals.
- A pop-up shop on Oxford Street in London.
- Christmas gift events in Edinburgh, Manchester, Liverpool, and London.
Regulatory Concerns
These strong trading figures are likely to intensify calls for the UK government to reconsider the “de minimis” rule, which currently allows overseas sellers to send goods valued at £135 or less to British consumers without incurring customs duties. Concerns have been raised about the potential for Chinese retailers to flood the UK market with low-cost goods, especially after the US revoked its own de minimis exemption for Chinese-made products last year.
