SHEIN seizes the British market! Other brands are panicking!

According to the British Sunday Mail , fast fashion giant SHEIN is using a series of tax advantages to undermine the position of some well-known online retailers in the UK . SHEIN has become a strong rival to brands such as Boohoo and Asos with its lower prices than its competitors .

Financial services company Morgan Stanley 's report mentioned that SHEIN 's tax costs alone are 20% lower than its competitors . This means that SHEIN's prices are 15% lower than fast fashion retailer Boohoo , 35% lower than Asos , and even 50% lower than H&M .

It is understood that Boohoo's sales in the UK this year will exceed 1 billion pounds and its market share will double that of two years ago , but according to Morgan Stanley's forecast, Boohoo's profits next year may decrease by 10 %.

However, SHEIN 's global sales are expected to reach $20 billion next year, which will eclipse retailers including Zara and H&M . According to market experts , SHEIN 's sales in the UK are now at least 250 million pounds a year and are rising rapidly.

SHEIN relies on its efficient supply chain and customer behavior data , collects a large amount of information from social media and applications, and lists thousands of new products on its website every day to stimulate demand. This year alone , SHEIN 's web traffic in the UK has doubled.

In 2018, due to the trade war with former US President Trump, China exempted export taxes for companies that ship goods directly to consumers, adding a strong boost to SHEIN's rapid development .

At the same time, parcels arriving in the UK by post are of low value and do not need to pay import duties like other large retailers using containers.

But a big tree attracts the wind. The development of SHEIN has attracted the attention of governments around the world and has been criticized by the chairman of the British Foreign Affairs Committee . Last year , it was also removed from the shelves by the Indian government due to security issues .

Morgan Stanley said that if tax policies in China , Europe or the United States change, SHEIN 's current price advantage may not be sustainable.

French bank Credit Suisse also mentioned in a recent report that the response of Western governments to restrict direct imports from China to increase the competitive environment may also hinder the company's growth.

Putting aside the above , SHEIN is able to gain a foothold in the global fast fashion market , in addition to its price advantage, there must be something unique about it . However, other similar or more competitive companies are likely to emerge in the next decade , further increasing the competitive pressure in the fast fashion market .

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