£2.05 Billion Sales: Shein Shakes Up UK Fashion – Why Is Gen Z So Willing to Buy In?
- TBA
- Sep 26
- 4 min read
Fast fashion giant Shein has delivered a striking performance in the UK market. In 2024, its sales surged by 32.3% year-on-year to surpass £2.05 billion (around USD 2.77 billion). This result has already pushed Shein ahead of Boohoo and close to overtaking Asos.
The figures come from a report filed by Shein’s UK subsidiary with Companies House, confirming the brand’s strong momentum and revealing how it has managed to win over millions of fans in one of the world’s most competitive retail landscapes.
Online and offline strategy captures Gen Z
Shein has never relied solely on online channels. In the UK, it combines digital reach with physical presence: bustling pop-up shops in Liverpool, a Christmas-themed bus tour across 12 cities, and expanding offices in London and Manchester. These ‘see it, touch it’ experiences strike exactly the right chord with Gen Z consumers.
On top of this, Shein excels at social media engagement.
On TikTok, the #SheinHaul hashtag remains hugely popular, with young shoppers sharing their purchases and recommendations. More than 60% of Shein’s UK sales now come from this demographic, showing just how well the brand has understood how to win over younger audiences.
Low prices and fast supply chain put value for money centre stage
Ask most people about Shein, and the first response is ‘cheap but fashionable’.
In the UK, the average price per garment is around £15, yet the collections follow global trends at impressive speed. Behind this is China’s ultra-responsive supply chain, which allows designs to move from concept to sale in record time – lowering costs while satisfying demand for the latest looks.
This efficiency is reflected in profits. In 2024, Shein’s UK pre-tax profits rose by 56.6% to £38.3 million.
By contrast, ASOS saw an 18% revenue decline, and Boohoo’s sales were only 45% of Shein’s. While domestic rivals struggle with heavy discounting and shrinking margins, Shein manages to keep prices low and still increase earnings – a clear supply chain advantage.
Preparing for Hong Kong IPO – UK market as key endorsement
Shein’s strong UK results arrive at a crucial moment as the company prepares for its IPO. While London was considered, regulatory factors in China led Shein to focus on Hong Kong instead. Still, the UK – now Shein’s third-largest market after China and the US – is a powerful endorsement of the company’s valuation.
Shein has already become the UK’s sixth-largest clothing retailer, with market share rising from 2.4% in 2023 to 3.1% in 2024. Analysts suggest it could overtake Sports Direct to enter the top five next year. Clearly, the UK market is playing a pivotal role in Shein’s global growth story.
Selling on Shein: compliance steps you cannot skip
For businesses looking to sell on the Shein platform, success depends on a clear understanding of compliance rules in each target market.
1. UK authorised representative
If products are sold in the UK, certain categories – such as electronics – require a UK Authorised Representative (UK Rep). Under UK law, the representative ensures that goods meet safety, health and environmental standards, handles registrations, and communicates with regulators on behalf of the seller.
The UK Rep must also assist in the event of product safety issues, providing technical documentation and supporting investigations. Choosing a qualified, reputable UK Rep and signing a detailed contract is essential. Similarly, under EU regulations, an EU Authorised Representative (EU Rep) is required for certain non-food products sold in the EU.
2. VAT compliance
Shein operates globally, and tax rules vary widely across countries. In Europe, VAT is particularly complex, with rates differing by country – 19% in Germany, 20% in France, 22% in Italy.
Sellers must register for VAT in the destination country, charge VAT correctly, and file returns accordingly. Additional taxes such as consumption tax or customs duties may also apply. For tailored advice, you can consult with TBA Global.
3. Trademark registration
Brand protection is critical. If you sell under your own brand, register the trademark in your target market in advance. For example, in the US you must apply with the USPTO and pass both formal and substantive examination before gaining exclusive rights.
If selling authorised goods, valid authorisation from the brand owner is required, with clear documentation of scope and duration. Failure to comply may lead to delisting, frozen accounts or even legal penalties for infringement.
TBA Global’s expertise
With 16 years of experience in cross-border compliance, TBA Global provides one-stop solutions for businesses selling internationally.
If you need help with UK or EU requirements, VAT registration, or trademark protection, our team is ready to help.
Why TB Accountants?
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