Friday, November 22, 2024

How Shein became a multi-billion-pound fashion brand selling T-shirts for £1.99

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Experts have also pointed to Shein’s approach to international trade tax laws. 

The company maintains it “complies with tax laws in the regions where it operates and is subject to the same tax regulations as industry peers”, but those peers have nonetheless accused Shein of exploiting loopholes.

In May, a chorus of executives including Boohoo CEO John Lyttle said Shein avoided import duties by shipping parcels individually (companies do not have to pay tax on shipments worth less than £135). 

Theo Paphitis, owner of Robert Dyas, Ryman, and lingerie brand Boux Avenue, said there was a “big slug” of foreign companies avoiding shipping tax by shipping orders directly from China.

“The government is not plugging loopholes,” he said. “It’s becoming absolutely clear that the emperor has no clothes on.” 

The Treasury said its customs and tax regime for low-value imports “balances reducing burdens for retail businesses and consumers buying goods from overseas with levelling the tax playing field for British businesses.”

Shein, meanwhile, consistently maintains that its low prices are down to “supply chain efficiencies and operational proficiencies” cultivated over the years.

For now, Shein’s ascent shows no sign of slowing down. That much is clear on TikTok, where close to a million videos have been posted under the hashtag #sheinhaul, each showing a young woman breezing through hundreds upon hundreds of outfits.

In one clip, a TikToker named Abigail can barely hold her haul in both hands.

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