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Shein Sales Surge: UK Tax Exemption Under Fire
9 Oct
Summary
- Shein's UK sales rose 26% to £2.58bn, surpassing Asos.
- The retailer's growth is linked to duty-free imports under the de minimis rule.
- Government faces pressure to alter the rule, impacting cheap parcel imports.
Fast-fashion giant Shein saw its UK sales climb by 26% in the past year, reaching £2.58bn and exceeding British competitor Asos. The company's UK division reported an 18% rise in pre-tax profits to £45.2m. Marketing efforts, including partnerships with music festivals and pop-up shops in major cities, contributed to this strong performance.
This substantial growth is likely to intensify calls for the UK government to address the "de minimis" rule. This regulation permits overseas sellers to ship goods valued at £135 or less directly to consumers without import duties. The US revoked a similar exemption for Chinese goods last year, and the EU is phasing out its own customs duty relief for low-value parcels, highlighting a global trend toward scrutinizing such policies.
Shein, founded in China with its global parent group listed in Hong Kong, operates primarily from China but sells worldwide. The company moved its headquarters to Singapore in early 2022 and has started manufacturing in countries like Turkey and Brazil. Concerns over the retailer's valuation, previously much higher, have been linked to anticipated global regulatory changes.
