Auto Amazon Links: No products found. Blocked by captcha.
Shein, the Chinese fast-fashion giant, experienced a substantial increase in sales in the UK last year. According to its full year accounts for 2024, the brand’s sales to UK consumers reached £2bn, leading to a 57% rise in profits compared to the previous year. The company acknowledged potential challenges ahead due to higher inflation and increased living costs impacting customer purchasing behaviors. Moreover, there is concern about the impact of potential import taxes following the UK government’s review of exemptions for packages under £135.
The rise in Shein’s sales comes at a time when the company already faces pricing adjustments in the US. After President Donald Trump eliminated a tax break on low-value packages, Shein had to raise prices to align with the new regulations. The removal of the “de minimis” exemption, which allowed goods valued at $800 or less to enter the US tariff-free, has had repercussions on companies like Shein, prompting price adjustments that could influence consumer preferences. The company’s strategy of keeping prices low through promotions and rewards has played a significant role in its success.
Despite its success, Shein has faced criticism over its working conditions in Chinese factories and the environmental impact of its business operations. Concerns over human rights violations and labor standards have prompted calls for stricter regulations to hold companies like Shein accountable. The possibility of a London Stock Exchange listing for Shein has stirred debate, emphasizing the need for companies doing business in the UK to uphold ethical and sustainable practices throughout their supply chains.
In 2024, Shein Distribution UK Ltd, the retailer’s UK arm, reported a 32.3% growth in sales to £2.05bn. The company also recorded a pre-tax profit increase to £38.3m from £24.4m in the previous year. Key milestones for Shein UK in 2024 included establishing offices in Kings Cross and Manchester, launching a pop-up shop in Liverpool, and organizing a Christmas bus tour across 12 UK cities. With 91 employees, predominantly women, focusing on the UK market, Shein UK aims to maintain its position as a leading player in the fast-fashion industry
Read the full article from The BBC here: Read More
Auto Amazon Links: No products found. Blocked by captcha.