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Shein’s UK division surged to a remarkable £1.55 billion (US$2 billion) in revenue in 2023, as revealed in a filing by the online fast-fashion giant on Tuesday. This impressive growth sets the stage for a highly anticipated London IPO.
As reported by the South China Morning Post, Shein’s annual UK revenue, its third-largest market, skyrocketed by 38% compared to the previous 16-month period ending in 2022.
The group’s rapid expansion, fuelled by its low-cost model of shipping products directly from factories in China to customers worldwide, has injected a new level of competition into the budget fashion industry. This has intensified the battle for market dominance among established players like Sweden’s H&M and UK-listed Asos and Boohoo.
Shein’s UK Growth: $2 Billion in Sales Marks Pre-IPO Success
Shein Distribution UK had previously reported sales of £1.122 billion for the 16 months from September 6, 2021, to the end of 2022, without providing a specific figure for the calendar year 2022.
The company was valued at US$66 billion in a fundraising round last year. According to sources last week, Shein, is preparing to hold informal investor meetings in the coming weeks ahead of its planned London IPO. The company is currently awaiting regulatory approval in the UK. As it tries to win over decision-makers in the UK and Europe, Shein in July pledged to invest further in the region.
According to the accounts, nearly all of Shein Distribution UK’s revenue—£1.39 billion last year—was paid to its Singapore-based parent company, Roadget Business, for the purchase of goods sold in the UK. Shein Distribution UK is a wholly owned subsidiary of Roadget Business, with Elite Depot, a company registered in the Cayman Islands, as the ultimate controlling entity.
A multibillion-dollar IPO would significantly boost London, which has faced challenges in attracting major company listings since Brexit. However, lawmakers have urged closer scrutiny of Shein’s supply chain practices, while the company has consistently maintained its commitment to upholding human rights.
