With reports appearing everywhere, it can be confirmed that Shein representatives have taken a preliminary look at locations for a potential UK distribution centre. Areas considered have included Castle Donington, Coventry, Daventry, and Derby. But before anyone gets carried away, any commitment to space will depend wholly upon government approval of Shein’s proposed float on the London Stock Exchange as well as any new restrictions that may be introduced that would impact the fast fashion giant’s current highly profitable modus operandi.
Market watchers suggest that while Shein is saying that it will be manufacturing some of its products in Turkey, there are no suggestions that this will apply to a significant volume of its products or that it will greatly reduce the direct shipment of individual orders from China to UK consumers. This currently allows numerous large-scale operators who manufacture in China to avoid paying import duties and taxes, placing local competitors at a complete disadvantage.
Many UK retailers are calling for the government to require that all imports of purchased goods, even those of low individual value, attract duty. This would, of course, likely end any chance of Shein floating on the London Stock Exchange and serve to ‘see off’ Shein rival Temu.
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