Shein, the online fast-fashion powerhouse that has taken the world by storm, has once again upended the British retail landscape. In 2024, the company saw its UK sales rocket by about a third to more than £2 billion, according to accounts filed at Companies House this week and reported by The Guardian and Daily Mail. This surge puts Shein ahead of British rivals like Boohoo and nipping at the heels of Asos, two of the country’s most prominent online fashion retailers.
The company’s profits mirrored its sales success, climbing 56% to £38.3 million in 2024, up from £24.4 million the previous year. Shein paid £9.6 million in corporation tax, reflecting its growing presence in the UK market. The retailer’s strategy appears to be paying off handsomely, especially as it continues to diversify its offerings beyond fashion to include toys and beauty products, while also expanding its physical footprint with new offices and pop-up experiences.
Shein’s UK expansion has been marked by several high-profile moves. The company opened two new offices in King’s Cross, London, and Manchester, and introduced a pop-up shop in Liverpool. Not content with just bricks and mortar, Shein also launched a Christmas bus tour that visited 12 cities across the UK, bringing its brand directly to consumers in a festive and interactive way. This hands-on approach has helped Shein almost triple its UK workforce to 91 employees over the past year, a testament to its rapid growth and investment in the region.
The company’s business model—offering cheaply priced, trend-driven clothes—has proven irresistible to younger shoppers, even as competition from Asos, Boohoo, and high street staples like Primark intensifies. As Daily Mail noted, Shein’s “cheaply priced clothes have helped entice young shoppers in the face of competition from the likes of Asos and Boohoo.”
But Shein’s meteoric rise has not gone unnoticed—or unchallenged. The retailer’s expansion has increased pressure on UK online fashion brands and traditional retailers alike, sparking debates over the fairness of the so-called “de minimis” customs rule. This regulation allows overseas sellers to send goods valued at £135 or less directly to British shoppers without paying customs duty. Critics argue that this loophole gives online giants like Shein and Temu an unfair advantage over domestic retailers, who must contend with higher costs and stricter regulations.
Rachel Reeves, the UK Chancellor, has pledged to review the de minimis rule following pointed criticism from major retail bosses, including Simon Wolfson of Next and Simon Roberts of Sainsbury’s. Graham Bell, chief executive of B&Q, was particularly blunt, stating earlier this month, “the rule was killing the high street more than anything,” as reported by The Guardian. The pressure is mounting for the government to act, especially as the US and EU move to tighten their own import rules.
In May 2025, the United States revoked its de minimis exemption for Chinese-made goods, which had previously allowed parcels valued under $800 (£600) to enter the country tax-free. The US government has announced plans to scrap the tax break for items from all countries later this month, a move that could reshape the global e-commerce landscape. Meanwhile, the European Union declared in February 2025 that it would phase out its own exemption on customs duties for low-value parcels, signaling a broader shift toward stricter import controls.
Shein’s corporate journey has been just as eventful as its retail operations. Founded by entrepreneur Chris Xu, the company was established in China but is now headquartered in Singapore. Most of its operations are still run from China, although Shein has recently begun manufacturing in Turkey and Brazil, likely as part of a strategy to diversify production and navigate shifting global trade policies. In 2022, Shein reached a staggering valuation of $100 billion in a fundraising round, making it the third-most-valuable startup in the world. However, expectations for its valuation have been tempered in the past year, due in part to changing US import rules and persistent concerns about its supply chain.
One of the most significant challenges facing Shein is the ongoing scrutiny over alleged human rights abuses in its supply chain. The company’s campaign for a listing on the London Stock Exchange faltered amid allegations of slave labour in the Xinjiang region of China—a charge that campaigners have pressed and Beijing has repeatedly denied. During a parliamentary hearing earlier this year, Shein representatives were unable to reassure a committee of UK MPs that their products did not include cotton produced in Xinjiang, which has been linked to forced Uyghur labour. This led one MP to accuse a Shein representative of “wilful ignorance,” according to The Guardian.
Shein, for its part, has stated it has “zero tolerance” for abuse in its supply chain. The company insists it is committed to ethical sourcing and compliance, but doubts remain among campaigners and policymakers. These concerns have not only affected Shein’s public image but also its strategic ambitions, with the failed London listing serving as a stark reminder of the reputational risks associated with such allegations.
With London seemingly off the table, Shein has reportedly filed for a listing in Hong Kong, as noted by both The Guardian and Daily Mail. A Hong Kong IPO could provide the company with the capital and global exposure it seeks, while sidestepping the regulatory and public relations hurdles it encountered in the UK. Still, the path forward is anything but certain, especially as governments worldwide tighten the screws on low-value imports and demand greater transparency from fast-fashion giants.
Adding to the complexity, Shein itself has warned that “higher inflation and increased cost of living may affect customer purchasing habits” in the UK. While the company’s growth has been impressive, the broader economic climate remains challenging, and consumer preferences can shift rapidly—especially in the fickle world of fashion.
Despite these headwinds, Shein’s influence shows no signs of waning. The company’s acquisition of the Missguided online brand from Mike Ashley’s Frasers Group in 2023 further cemented its position in the UK market. With bold marketing campaigns, relentless innovation, and a keen eye on both digital and physical retail, Shein is poised to remain a dominant force in British—and global—fashion for the foreseeable future.
As Shein navigates regulatory scrutiny, supply chain controversies, and shifting consumer trends, the coming months will reveal whether its rapid ascent can be sustained in an increasingly challenging environment. For now, the retailer’s blend of affordability, agility, and ambition continues to reshape the landscape of British retail, leaving competitors scrambling to keep up.
