The British arm of the fast-fashion company Shein achieved sales of over 1.5 billion pounds last year, the company announced on Tuesday. This increase is based on strong demand for affordable products and the successful launch of pop-up shops across the country. By December 31, 2023, the sales of Shein Distribution UK Limited amounted to 1.55 billion pounds, a significant increase compared to the previously achieved 1.12 billion pounds in the preceding 16 months.

Despite slower revenue growth, Shein expects to double its pre-tax profit, rising to 24.4 million pounds. The tax expense increased from nearly 2.34 million pounds to 5.7 million pounds. These developments come as Shein prepares for a possible IPO. The company's shares rose by 1.21 percent to $169.23 on NASDAQ trading after a one-day pause, reflecting positive investor response.

A key success factor for the growth of Shein UK is the newly opened pop-up shops that enabled the company to interact directly with consumers and increase brand awareness. Additionally, a new office was opened in Manchester to further expand operational presence in the United Kingdom. While the period from July to September recorded an impressive increase in deliveries by over 129 percent, the entry price for investors remains a challenge during the COVID-19 pandemic at over 145 euros.

Shein, founded in China and recently based in Singapore, has revolutionized the fashion industry with its model of directly delivering affordable clothing from Chinese factories to Western consumers. Despite its success, the company faces allegations concerning forced labor in the cotton supply chain and lax environmental standards, which Shein vehemently denies. Competition with companies like Temu is intensified by Shein's ability to ensure low prices by shipping small packages directly to consumers, thereby avoiding customs fees.

The planned IPO of Shein was originally intended for New York but is being shifted to London after U.S. regulators did not approve the project. The company is currently awaiting the necessary approvals in China and the UK to proceed with the London listing. Last week, the reserved billionaire and founder Sky Xu traveled to the UK to meet potential investors and will soon travel to the U.S. for further discussions.

Shein emphasized that last year's revenue and profit growth was driven by strong customer demand and loyalty in the UK. Additionally, the company continues to invest in its "on-demand platform" to offer customers more choices and a better shopping experience.