Compared to a 40 per cent growth in the previous year, online retailer Shein experienced a slowdown in revenue growth, rising by 23 per cent in H1, FY24, as per a report by The Information.

This decline in the company’s performance was attributed to increased competition, particularly from Chinese discount shopping platform Temu, which has gained significant traction in the U.S. market.

During the period, Shein’s profit also declined by over 70 per cent to just under $400 million. Despite this, the company’s revenue increased to $18 billion.

Known for its ultra-low-cost business model that ships directly from factories in China, Shein, sells items like $5 tops and $10 dresses, which have contributed to its rapid global expansion. Last year, the company was valued at $66 billion following a fundraising round, and it recently held informal investor meetings in preparation for a planned initial public offering (IPO) in London, according to Reuters.

Although Shein does not publicly disclose its global financial results, an October filing revealed that its UK business generated £1.55 billion ($2 billion) in revenue in 2023.