Shein's UK sales surged to £2 billion in 2024
Shein does not report global results publicly, but the filing sheds light on its growth in Britain, its third-biggest market after the US and Germany, as the company works toward an initial public offering in Hong Kong.
Founded in China and headquartered in Singapore, Shein has spent years attempting to list, first in New York and then in London, but faced criticism from US and UK politicians and failed to get approval from China's securities regulator for the offshore IPO at a time of increasing tensions between China and the US.
The global retailer's UK business, Shein Distribution UK Ltd, reported a pretax profit of £38.25m in 2024, up 56.6% from £24.4m in 2023.
In the filing, Shein highlighted 2024 milestones, such as a pop-up shop in Liverpool, a Christmas bus tour across 12 UK cities and the opening of two new offices in Kings Cross and Manchester.
Known for deeply discounted prices, Shein runs constant promotions and offers coupons or rewards that encourage shoppers to keep buying. Shein has taken market share from retailers like ASOS and H&M as surging inflation dented consumers' spending power, driving them to hunt for bargains.
Shein has also broadened its offering beyond fashion - the UK site sells £7.99 dresses and £15 jeans, as well as everything from toys and craft supplies to storage units.
Shein's business has benefited from customs duty exemptions on low-value e-commerce packages that allow it to send goods directly from factories in China to shoppers' doorsteps largely tariff-free.
But that perk is on its way out, driving Shein's costs - and prices - up, particularly in the US, where imports from China are now subject to steep tariffs.
US President Donald Trump's administration has scrapped its "de minimis" exemption for parcels under $800, and the European Union plans to remove its equivalent duty waiver on e-commerce parcels worth less than €150.
Britain is also reviewing its policy on low-value imports after retailers said it was giving online players like Shein and Temu an unfair advantage.
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Irish Examiner
6 hours ago
- Irish Examiner
EU braces for wave of Chinese imports as Trump tariffs redirect Shein and Temu sales
With US president Donald Trump pushing to reshape global trade with the imposition of tariffs on foreign products, firms around the world are looking to diversify into different markets while moving away from the US — which cannot be relied upon as a trusted trading partner. For China, the US has been its largest trading partner and as a result, has been the focus of Mr Trump's ire ever since he was sworn back into office. In recent years, the US has become a huge market for low cost products from the likes of online retailers Shein and Temu — who may be seeking alternative destinations for their products given difficult trading conditions with the US. However, both of these companies have been heavily criticised for numerous issues ranging from poor treatment of workers at factories, to producing low quality and environmentally damaging products, as well as products which are unsafe. Alacoque McAlpine, Irish Research Council Government of Ireland scholar at Sutherland School of Law in University College Dublin, who has for years lectured in sustainable supply chain management, said companies like Shein would be considered 'ultra fast fashion' — as they are on another level compared to retailers here such as Penneys, Zara, and H&M to name a few. 'They're not as good quality either. So they're not durable, they don't last, and they're essentially going to landfill,' she said. While the tensions between China and the US may have reduced in recent months, Chinese goods are still subject to a 30% tariff when they arrive in the US. The US is also set to end the de minimis exemption on August 29, which allowed goods valued at $800 (€682) or less to enter the country without any tariffs. Given all these trade barriers with the US, Chinese exporters may turn their eyes towards the EU — where trade relations are less volatile. China is the EU's second largest trading partner for goods after the US. During 2024, the EU imported €519bn worth of goods from China, the vast majority of which were manufactured goods. In a recent analysis, the European Central Bank (ECB) said the trade barriers now in place between the US and China may result in Chinese exports being redirected to the eurozone. It said in 2018, following Mr Trump's imposition of tariffs on China during his first term, this redirection of goods to Europe was 'significant' with the eurozone 'absorbing the trade displaced by US tariffs'. 'Between 2018 and 2019, eurozone imports from China increased by around 2 to 3%,' the analysis said. The ECB said there were several factors that suggest the eurozone could experience a larger redirection of Chinese exports. 'The composition of Chinese exports to the United States and to the eurozone is similar, making the eurozone a natural alternative,' the ECB said. 'Established supply chain links, which have expanded since the last China-US trade war, and ongoing industrial upgrades in China, facilitate the redirection of trade flows. Many euro area firms already rely on Chinese imports, making it easier to absorb redirected goods.' It also pointed out that Chinese businesses have already laid the groundwork for faster market entry into the EU, having 'almost tripled their presence with investments in European sales and distribution networks since 2017'. 'In addition, Chinese authorities have pledged targeted support to help affected exporters redirect sales to domestic or third markets, which could allow for further price cuts,' the ECB said. A crane picks a container from a truck at the Manila North Harbour Port in Manila, Philippines on Thursday, Aug. 7, 2025. (AP Photo/Aaron Favila) The bank added that increasing exports from China to the eurozone has the potential to exert downward pressure on eurozone inflation through lower import prices. In its upper estimates, the ECB suggests these tariffs could increase imports from China by 10%. While most products that make it to the EU are just made in China by large international companies, the growth of Chinese brands beyond the country's borders is becoming more common. Companies like Shein and Temu are getting a stronger foothold in the EU. Getting an idea of Shein's growing popularity can be difficult as it is a privately-owned company. According to Bloomberg News, during the first quarter of this year, the overall Shein Group reportedly generated global revenue of $10bn, with net income rising to over $400m. This was before Mr Trump implemented tariffs on Chinese imports. The Bloomberg report cited unnamed sources from the company but Shein disputed these figures without elaborating. The clothing retailer, founded in mainland China but headquartered in Singapore, does not disclose its financial figures so it is unclear how Shein fared in the second quarter after tariffs were implemented. Financial documents from Shein's Irish arm Infinite Styles Ecommerce, which handles the company's operations across the EU, show it is having considerable success in the EU. In 2023, the company reported revenue of €7.68bn — up from €4.58bn the year prior. This resulted in profit of just under €100m — up from €45.8m the year before. Also, Shein's sales in Britain, while not being in the EU, has also grown significantly — with the company reporting a 32.3% increase in revenue during its most recent financial year to £2.05bn (€2.374bn). The growth of Shein is being seen as a concern as their low cost products and business practices have been heavily criticised in the past. President Donald Trump speaks to reporters aboard Air Force One while en route to meet with Russia's President Vladimir Putin at Joint Base Elmendorf-Richardson, Alaska, Friday, Aug. 15, 2025. (AP Photo/Julia Demaree Nikhinson) Ms McAlpine said all the 'slick marketing' from companies like Shein has made 'consumers think that they need to buy the products more frequently, and they kind of treat them as disposable'. 'There is rapid turnover of new products again on a weekly basis. It's mainly polyester based, so there's a huge environmental impact there,' she said. 'Fast fashion has always had a very negative impact on the environment. In the last 20 years, global fibre production has doubled, and it's expected to grow if things continue the way they are. The fashion industry is the second biggest consumer of water industry-wide, it's responsible for 10% of global carbon emissions.' Ms McAlpine said all these textiles are going to the dump because they cannot be recycled, due to being plastic based or mixed fibres. She said: 'Shein is selling a lot of products, and they're selling it very cheaply. How do they do this? Well, they do it by putting a lot of pressure on their suppliers at the end of the supply chain, and then those suppliers put pressure on their workers.' She also said that the growing prevalence of Shein also means that retailers here will also try to stay competitive and as prices fall, it will ultimately hurt the worker who makes the product. 'Prices keep falling, and then the garment factories have to respond to the price pressure, and they will cut the most flexible cost, which is wages,' she said. Ms McAlpine said she doesn't blame the consumer, this is an 'extremely profitable industry' and these companies encourage people to be buying and disposing of their clothes on a regular basis. She said: 'I just don't believe consumers woke up in the morning and decided to spend all our money on this. I believe it's the marketing by the companies that have convinced us. They kind of changed our perception of fashion, and they're really good at making us feel bad about ourselves so we buy more.' Ms McAlpine said there are no international standards in regards to regulating these supply chains and there are no health and safety regulations these firms have to follow when sourcing their products. 'I think regulation is important. All the companies went overseas to take advantage of low-cost wages and lax environmental standards and with no commensurate regulation,' she said, adding that these companies eventually got in trouble for issues such as child labour, not paying workers, and environmental issues. She said some companies tried to impose codes of conduct but this hasn't worked: 'I think we cannot leave it up to the companies. Unfortunately, we need legislation, and the EU has been putting in place legislation, but unfortunately, since the Draghi report last September, they're all about cutting the red tape, and they're deregulating everything.' In a statement, Shein said they operate a 'customer-driven, on-demand business model' that allows the company to meet demand 'while reducing overproduction and waste and maintaining affordability at the same time'. In regards to its supply chain conditions, it said it is committed to 'fostering a safe and fair work environment for all of our suppliers' employees'. The company added that it invests time and money into ensuring workers in its supply chain are 'treated fairly', while working with third-party agencies to monitor compliance with local laws and international standards. Temu, on the other hand, has its own problems. Its owner, PDD Holdings, reported a 47% drop in profit during its first quarter of the year amid local competition and global trade uncertainty. Whaleco Technology Limited is the Irish arm of PDD Holdings for the purpose of doing business in the EU. In its latest available financial documents, from 2023, it generated just under €758m in revenue from its operations, resulting in a profit of €38m. Last month, EU justice commissioner Michael McGrath said he was shocked at the toxicity and dangers of some goods being sold to Temu and Shein amid a crackdown on the retail platforms. Among the worst examples cited by Mr McGrath include baby soothers with beads that fall off easily, which pose a choking hazard because they did not have the regulation size hole to enable a baby who did swallow one accidentally to continue to get air. Other goods cited by MEPs include children's raincoats with toxic chemicals, sunglasses with no UV filter, and kids shorts with draw strings longer than regulation length that cause a trip hazard. There were also concerns about certain banned chemicals in cosmetics. EU figures show 12m low-value items coming into the bloc a day, amounting to 4.6bn during 2024 valued at under €150 — double that of 2023 and three times as many as 2022. In an attempt to combat these low value products surging into the bloc, the EU is considering whether to close its own de minimis exemption, set at €150. They're good at making us feel bad about ourselves so we buy more
Irish Times
10 hours ago
- Irish Times
Intel chief executive learns the art of staying in Trump's good books
A warm word for Donald Trump can thaw the frostiest of corporate spats. Less than a week after demanding the resignation of Intel chief Lip-Bu Tan , Trump hailed his career as 'an amazing story'. And Intel's shares jumped on Thursday and Friday amid reports that the Trump administration had discussed an unusual move to acquire an ownership stake as part of a plan to revive the troubled US chipmaker. All of this followed a meeting Trump described as 'very interesting'. Intel's shares, which fell after Trump accused Tan of being 'highly CONFLICTED' over past investments in Chinese chipmakers, duly rebounded. Tan's initial sin? Unlike other tech chief executives, noted one Bernstein analyst, he hadn't 'cultivated' a 'personal relationship' with Trump. READ MORE Intel and Tan have learned their lesson, praising the 'honour' of meeting Trump, his 'strong leadership,' and reaffirming their commitment to the 'America First agenda'. Such gestures can pay off handsomely. Apple's Tim Cook gifted Trump a $6,000 Mac Pro in 2019 after he lowered tariffs on parts Apple needed from China, and also gave $1 million to his 2025 inauguration fund. More recently, he presented a gold-mounted glass plaque praising Trump's 'leadership' and was soon spared from new chip tariffs – another exercise in calculated appeasement. Meta's Mark Zuckerberg has pivoted from banning Trump on Facebook to describing him as 'badass' and championing 'masculine energy' in the workplace. However, they pale beside Nvidia's Jensen Huang, who has lavished praise on Trump's 'utterly visionary' tariffs and insisted: 'The president has a plan ... and I trust him.' The lesson: in Trump's America, keeping the president's favour is as critical as any quarterly earnings target.
Irish Times
10 hours ago
- Irish Times
Donald Trump's era of Dick Turpin economics is a menace to our State
US president Donald Trump and his cronies 'flood the zone' with so much noise that it is easy to let stuff slip past. But sometimes we need to listen. Because there is a risk that these guys actually mean at least part of what they are saying. Little attention was paid this week, for example, when US treasury secretary Scott Bessent spoke in an interview with Fox News about the 'promises' countries like Japan, Korea and the EU had made to invest money in the United States as part of trade agreements. The countries involved made these commitments in the full knowledge that they couldn't fulfil them. They were a way to dress up trade deals with a little fluff, based on the likelihood that big companies were likely to continue to invest in the US in any case. After all, how could European Union governments, for example, direct their companies to invest $600 billion (€513 billion) in the US by 2028 , which is the figure mentioned in the political deal reached between Trump and European Commission president Ursula von der Leyen ? Did the EU have its hands tied before striking a trade deal with the US? Listen | 23:32 But Bessent has a different view. He likened the money promised in the deals to an offshore wealth fund, with the US able to 'direct' where the money would be invested. The trade surpluses these countries had with the US were to be recycled into investment in the US, at the president's discretion. READ MORE Whether this is serious or just part of the ongoing public relations of Trump 'winning' is anyone's guess. Still, perhaps it explains why we have yet to see anything by way of a written agreed statement of the US-EU 'deal', even though the 15 per cent tariffs have been applied. The EU has fudged that the $600 billion is 'as an indication based on the executive's contacts with industry'. Which, of course, is nonsense. Trump has said that if the money is not invested, then the EU tariffs will go back up to 35 per cent. So we have the emergence of this kind of Dick Turpin economics as Trump and his team perform a 'holdup' on countries that want access to US markets. And companies are having to pay the Maga highwaymen, too. After all, Nividia and AMD are to pay the US Government a 15 per cent share of revenues from sales of advanced artificial intelligence chips in China, in return for export licenses. This isn't the free market economics traditionally championed by the Republican Party. It is instead a particular kind of Trumpian crony capitalism – countries and businesses that are in favour, or pay the required price, are okay, while others, like Brazil and Canada at the moment, are targeted. Control from the White House is everything. Against this chaotic backdrop, the 'certainty' that the trade deal was meant to bring European businesses, including those in the Republic , thus looks qualified and uncertain. If you thought everything was settled with a handshake in Scotland, then you haven't been paying attention. The absence of an agreed statement between the two sides on how the deal will operate may well reflect Trump's desire to give him the scope to duck and dive. The issue of the promised European 'investment' in the US remains contested. And Trump has made it quite clear he is willing to take whatever measures he feels are necessary – tariff-based or otherwise – to increase the security of supply for the US in vital pharma and semiconductor products. Pharma is the latest sector subject to the squeeze from Washington, demanding lower prices in the US and more investment there, which will mean higher drug prices and fewer factories and jobs elsewhere. This week Eli Lilly announced it would hike the price of its weight loss Mounjaro in the United Kingdom market by up to 170 per cent, saying it supported Trump's view that drug prices – which are up to three times higher in the US – need to be rebalanced. You can choose to be optimistic or otherwise about how this might play out for pharma investment and tax revenues in this State. But the Central Statistics Office's latest trade figures, published on Friday, show our trade surplus with the US in the first six months of this year was €64 billion, up from €22 billion in the same period last year. European Commission president Ursula von der Leyen and US president Donald Trump at Turnberry in Scotland on Sunday. Video: Reuters. Illustration: Paul Scott Now the 2025 figures are distorted by the huge movement of pharma to the US to try to beat the initial imposition of tariffs in April. But our huge surplus with the US – based almost entirely on pharma – keeps us under the spotlight in Washington and means the companies concerned will remain under relentless pressure from the White House to change their investment and pricing plans. There is no point in the Republic waiting around for the sky to fall in as all this plays out. The risks are clear, but the outcome will remain uncertain, perhaps for many months to come. The publication of the study by the Trump administration into the pharma sector – the so-called section 232 investigation – will be an important moment, for sure, and should happen soon. Presumably, it will be accompanied by some policy measures and much noise. Trump, as he has done with his other 'holdups', will look for something here – in terms of price cuts and investment commitments from the industry, perhaps – and given our reliance on pharma investment and tax, this could well hurt us. He may well threaten more tariff pain for companies if they do not fall into line. And so the uncertainty will persist. This strategic risk needs to be the backdrop to Budget 2026, along with using the opportunity given by our strong economic figures and record tax haul to invest in infrastructure vital for people's lives and business investment. There is no point waiting for some kind of 'certainty' because it isn't coming. We need to do this on the basis that this may be our last chance to plan this before – sometime over the next few years – the exchequer picture starts to look a lot tighter. And that in the meantime, disruptive shorter-term risks remain. Instead, we may well spend the next six weeks arguing over whether households should get a few euros in energy credits and a double child benefit week.
