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Shein’s UK Sales Surge to $2.8 Billion in 2024

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Shein’s British business generated £2.05 billion ($2.77 billion) in sales in 2024, marking a 32.3% increase from 2023, according to a recent filing. The UK represents Shein’s third-largest market after the United States and Germany as the fast-fashion e-commerce giant prepares for an initial public offering in Hong Kong.

Shein Distribution UK Ltd reported a pretax profit of £38.25 million in 2024, up 56.6% from £24.4 million the previous year. The filing highlighted milestones including 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.

The retailer is known for low prices, constant promotions, and rewards programs that encourage repeat purchases. Shein has captured market share from competitors such as ASOS (ASOS.L) and H&M (HMb.ST), especially as rising inflation has pushed consumers toward bargain hunting. Its UK site offers items ranging from £7.99 ($10.84) dresses and £15 ($20.36) jeans to toys, craft supplies, and storage products.

Shein has benefited from customs duty exemptions on low-value e-commerce shipments, allowing goods to be shipped directly from Chinese factories largely tariff-free. However, these exemptions are being phased out, raising costs and prices, particularly in the U.S. The Trump administration eliminated the “de minimis” exemption for parcels under $800, and the EU plans to remove its duty waiver for parcels under €150. The UK is also reviewing its policy on low-value imports amid complaints that it favors online retailers like Shein and Temu.

Shein and Temu Outpace Global Retail Giants in South Africa’s Fashion Market

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China-founded e-commerce retailers Shein and Temu have rapidly captured a combined 3.6% share of South Africa’s retail clothing, textile, footwear, and leather (CTFL) market, generating sales worth 7.3 billion rand ($405 million) in 2024, according to a new report.

Shein entered South Africa in 2020, with Temu following in 2024. Both companies have disrupted the local retail sector through aggressive pricing strategies, targeted marketing, and exploiting tax loopholes that initially gave them a competitive advantage over domestic retailers. The tax loopholes were closed last year after calls from local retailers and regulators.

The Localisation Support Fund (LSF) report highlighted a decline in domestic retailers’ market share of the CTFL sector, dropping from 75.3% in 2011 to 74% in 2024. Meanwhile, established international brick-and-mortar brands such as H&M, Zara, and Cotton On collectively hold a 3.4% share.

Shein and Temu together now control 3.6% of the overall CTFL market and a significant 37.1% of South Africa’s e-commerce CTFL market. Shein alone accounts for 28% of online ladies’ CTFL sales.

Sean Mercer, principal consultant at BMA, emphasized the speed of their rise: “Those international retailers have acquired this market share over 13 years, and Shein and Temu have managed to match and surpass this in just five years.”

Zalando Harnesses Generative AI to Slash Campaign Costs and Speed Up Fashion Marketing

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Zalando, the European online fashion retailer, announced it is using generative artificial intelligence (AI) to accelerate content production for its app and website, allowing it to respond quickly to viral fashion trends while cutting marketing costs by up to 90%.

According to Matthias Haase, VP of Content Solutions at Zalando, generative AI has reduced image production times from six to eight weeks down to just three to four days. The tech enables the brand to stay agile in an industry where fast reaction to fleeting trends—like “brat summer” or “mob wife”—can determine visibility and sales.

More than 70% of Zalando’s editorial campaign imagery in Q4 2024 was AI-generated, including content used in its trend recaps and seasonal promotions. The company is also developing AI-generated “digital twins” of human models, creating three-dimensional replicas for consistent visual use across product pages and campaigns without the need for repeated photo shoots.

“It’s not that AI content is better than human-created content,” Haase noted, “but it’s more timely and relevant to what customers care about now.”

Zalando joins a growing list of retailers integrating AI into their workflows. In March, H&M announced a similar initiative using digital twin technology developed with a modeling agency. The technology appeals especially to mid-tier retailers, offering an alternative to expensive, logistically intensive photo shoots favored by high-end fashion houses.

Asked about the impact of AI on creative jobs, Haase said that photographers and creatives will remain essential, but must adapt. “Creative minds now have, instead of two hands, six hands,” he said, emphasizing AI as a tool, not a replacement.