Since 2019, Shein has grown explosively to rank as the world’s fourth largest apparel brand by 2024, generating USD21 billion in sales (fixed 2024 exchange rates), with 35% from the US. Amid evolving US trade policies and intensifying competition from both Chinese rivals and Western giants, Shein is pivoting strategically: strengthening its footprint beyond the US, diversifying its supply chain, and refining its pricing model to adapt to the elimination of de minimis trade exemptions.
Expand market presence beyond the US to diversify revenue sources
The US has long served as Shein’s growth engine, contributing 35% of its global apparel and footwear growth between 2021 and 2024. While Shein continues to invest aggressively to protect its stronghold in the US, growth is plateauing, and the end of de minimis exemptions is threatening Shein’s low-price edge. In response, Shein is accelerating efforts to diversify its global footprint.
Latin America is emerging as a pivotal region in Shein’s next growth chapter, with Brazil and Mexico expected to drive strong momentum over the next three years. Meanwhile, Shein is staging a bold return to India, where it was banned in 2020, via a 2025 partnership with Reliance Industries. Together, India, Mexico and Brazil are forecast to be the first, third and fourth largest contributors to global apparel and footwear absolute growth between 2024 and 2029, positioning them as key pillars of Shein’s international expansion strategy.
Since the pandemic, fashion retailers have increasingly shifted from a cost-first mindset to prioritising resilience, speed and risk diversification in their supply chains. While China remains the largest exporter of apparel and footwear, its dominance is gradually being challenged. Emerging hubs like Vietnam and Bangladesh are gaining traction as brands seek alternative sourcing destinations.
A full-scale move away from China remains difficult, short term, due to its strong infrastructure and supplier ecosystem. In response, Shein has adopted a “China+1” strategy – maintaining its manufacturing core in China while expanding elsewhere. In 2023, Shein announced plans to transform Brazil into a manufacturing and export hub for Latin America. Similarly, Shein is scaling up operations in Turkey to serve European customers and shifting parts of its supply chain to Vietnam to mitigate risks tied to US-China trade tensions.
Shein raises prices as de minimis ends – but still holds cost advantage, for now
With the removal of the de minimis exemption, China-based retailers like Shein, Temu and Chinese Amazon sellers, once reliant on the under USD800 duty-free threshold, are now among the most exposed to the policy shift and likely to face significant price increases.
Shein’s 120 top-selling dresses in the US saw an average price increase of 15%, from USD12.51 on 6 February 2025 to USD14.42 on 5 May
Source: Euromonitor International
This shift was marked by the removal of three items and price hikes across 90 of the remaining 117 products.
Unlike its rival Temu, which responded by halting shipments from China and switching entirely to US-based warehouses, Shein still relies on cross-border shipping, at least for the time being. As of 5 May, 17 of the 117 tracked products were fulfilled from Shein’s US warehouses, though Shein may ramp up local fulfilment in the future. Despite modest price hikes, Shein still has a price advantage, but ongoing pressure may lead to further increases, weakening its US competitive edge.
To protect their margins, fashion companies – especially low-margin fast fashion players – will increasingly need to pass rising costs on to consumers. However, with Americans already facing higher living expenses, discretionary fashion spending is likely to tighten. Consumers may turn to cheaper alternatives like Shein, reduce purchase frequency or opt for second-hand and repair options. In this environment, success will depend on companies’ ability to adapt: selectively raising prices, communicating value beyond cost, such as convenience, experience or sustainability, diversifying sourcing to manage risk and expanding into emerging markets to drive growth.
Learn more about Shein, other China-based players and the impact of Trump’s policies on them in our reports, Shein (Roadget Business) in Apparel and Footwear, New Players, New Rules: Temu, Shein and TikTok Shop in US E-Commerce and How Trump's Economic Policies Affect Industries and Consumer Markets.
