Shein, the fast-fashion behemoth once dubbed as “the worst company in the world,” has experienced explosive growth during the pandemic. They’ve already hit £2 billion in sales to UK shoppers! Lucky for them, the company’s profits were up 57% over 2023. They announced a pre-tax profit of £38.3 million for the full year, compared with £24.4 million the previous year. Meanwhile, Shein sales are skyrocketing. This is happening even as the company continues to be roundly criticized for its labor practices and environmental harm.
Last June, Shein submitted pre-IPO documents to the London Stock Exchange, making her headquarters in a small Asian nation known as Singapore. The move is just one piece of a bigger effort to strengthen its foothold in global markets. Earlier this year, the company opened two offices in Kings Cross and Manchester, further establishing its operational footprint in the UK.
Realising the need to get closer to consumers, Shein recently opened a pop-up shop in Liverpool. They launched a Christmas bus tour, touring through 12 cities around the UK. These initiatives increase brand awareness and get Shein seen more positively. They further praise Shein’s commitment to ongoing low pricing via frequent sales and promotions, including rewards.
Shein’s skyrocketing growth has not been without its hiccups. The company continually faces fire over the conditions in their Chinese factories. Worries over the ecological consequences of its exploitative business model haven’t stopped surfacing. Peter Frankental is the economic affairs programme director at Amnesty International UK. He projected that while accountability is important across all sectors, it’s particularly needed in the fashion industry.
“Regardless of whether Shein gets listed on the London Stock Exchange, no company doing business in the UK should be allowed to play fast and loose with human rights anywhere in their global supply chains.” – Peter Frankental, Amnesty International UK
There are threats to Shein’s burgeoning UK operation—specifically, the possibility of Shein being hit with import taxes. The government recently announced a review of the exemption for packages valued at less than £135, which could affect the company’s pricing strategy.
Here’s how Shein is succeeding in a cutthroat, low-cost, fast-fashion future. Going forward, it will need to address concerns and prepare for new rules that could be imposed when a new federal administration comes. As of December 31, 2024, Shein publicly commits to having two female directors and five female senior managers. The firm is focused on building gender parity among its senior ranks.