After years of secrecy surrounding its financials, Shein’s revenues are slowly coming to light, with new UK accounts showing that it achieved £1,121.7m in sales from the end of October to December 2022, confirming it was the 14^th largest apparel retailer in the UK in 2022, with a market share of 1.7%. GlobalData expects its market share to have increased significantly in 2023 to 2.2%, placing it in the top ten for the first time, as awareness has grown, and cash-strapped consumers have sought cheaper clothing. Shein’s potential acquisition of fellow fast-fashion brand Missguided from Frasers Group would also allow it to become even more dominant in the UK market in the future.

Despite concerns over the ethics of its supply chain and business model, Shein has quickly grown in popularity among Gen Z shoppers in the UK. The retailer’s test and learn model allows it to constantly stay on top of trends, and its value prices have been particularly attractive this year as high inflation and difficult macroeconomic conditions continued to put pressure on consumers’ budgets. Its expertise in leveraging the power of social media has also allowed it to build on its brand awareness, especially through TikTok where the brand regularly sponsors try-on hauls. This combination of low prices, desirable product ranges and impactful marketing is forecast to have helped Shein steal further market share from rivals ASOS and the boohoo group in 2023, growing its market share to 2.2%, only 0.2ppts behind ASOS.

In August 2023, Shein announced a strategic partnership with Forever 21’s US operator SPARC Group, involving Shein acquiring a third of the SPARC Group in exchange for the group becoming a minority shareholder in Shein. As part of the deal, Shein will also share its expertise to strengthen SPARC’s brands online presence, with a particular focus on expanding the distribution of Forever 21. Now in September, it has been rumoured that Shein is reportedly in talks to acquire Missguided from Frasers Group, which highlights its desire to strengthen its market positions in the US and the UK by partnering with well-known, local brands. Missguided has lost significant market share in recent years due to increased competition from newer, more agile fast fashion players, leading to it being rescued from administration by Frasers Group in June 2022. However, the brand still has high consumer awareness in the UK, which Shein could leverage to its advantage, especially if it incorporates the brand into its burgeoning marketplace or starts selling its own products under the Missguided name. An acquisition of Missguided could also enhance Shein’s distribution capabilities in the UK to provide faster and more efficient delivery for shoppers.

Shein opened a pop-up store on Oxford Street for London Fashion Week from the 15^th to 17th of September, which was hugely successful with lengthy queues to enter the store, allowing it to engage with shoppers, build awareness further and test physical retail before potentially committing to any permanent locations. As part of the SPARC Group deal, it has been rumoured that Shein might explore physical retail further by opening shop-in-shops and instore returns in Forever 21 stores in the US. Shein is also committed to expanding its integrated marketplace, which allows consumers to shop from a range of third-party brands on its site, widening and diversifying its offer, which will allow it to onboard more local UK brands with high awareness and better compete with ASOS to capture more market share.