According to recent figures shared by data analytics company GlobalData, online retailer SHEIN is projected to surpass Zara in the next two to three years. The data from the data analytics company show that SHEIN generated over £ 1.3 billion in clothing sales in the UK in 2023. Currently, SHEIN holds a 2.2 per cent share of the UK’s £ 60.3 billion clothing market, while Zara holds 2.4 per cent, as reported by the research firm.
Despite facing allegations of labour law violations and design theft, SHEIN officially became the world’s largest fashion retailer in 2022. Established in 2008, the retailer achieved success by offering affordable clothing and lifestyle products, adding over 2,000 new styles daily.
In a move to expand its presence in the UK, SHEIN announced plans in November 2023 to open a new office in Manchester, adding to its existing London office, which employs approximately 40 workers. However, the company’s US IPO may face delays due to an application with Chinese regulators. The IPO filing was made in November to comply with new listing rules for local firms, but the process may be prolonged due to scrutiny from both US and Chinese regulators.
SHEIN’s strategy includes opening new stores and pop-up ventures worldwide. The company is set to open a new pop-up in Brisbane, Australia, offering a range of products from apparel to electronics. While SHEIN is banned in India, it continues to sell products through other online retailers such as Amazon, following a ban on 59 Chinese apps in June 2020 amid deteriorating bilateral relations between India and China.
Despite its ban in India, SHEIN is exploring opportunities to re-enter the market and has relocated its headquarters to Singapore, potentially altering its classification as a Chinese entity in the eyes of Indian authorities. However, since its departure, several startups like Urbanic have emerged to provide affordable fashion clothing to Indian consumers, posing potential competition for SHEIN in the market.
