Total Australian sales for fast fashion giant Shein have risen by around 20 per cent to $1.22 billion for the year ending December 31, 2024 compared to 2023.
This is according to new filings tabled to ASIC from the locally established arm of the global entity, Shein Distribution Australia Pty Ltd. Shein first entered the Australian market in 2022.
Amid the sales surge, Shein also reported a 30 per cent lift in its total profit in Australia to $15.16 million, up from $10.64 million in 2023. The lift came despite increases in the online retailer’s marketing spend and administration expenses.
For 2024, Shein’s marketing expenses were $28.92 million, up from $25.19 million, with administrative expenses doubling from $1.03 million to $2.33 million. The online retailer’s tax for 2024 was also up, hitting $6.49 million, up from $4.56 million.
Alongside this, Shein reported refund liabilities of $6.44 million in 2024, up from $4.20 million in 2023.
The total revenue lift for Shein was also supported by a near 9-fold increase in interest income, which hit $3.02 million.
The fast fashion business’ local rises in sales and profit comes despite more subdued movements in metrics for local fashion brands and retailers.
Myer reported flat sales for the first half of FY25, up by just $2 million to $1.831 million. The department store’s operating gross profit reduced by 1.4 per cent to $656 million, while cost of doing business was $457.8 million, an increase of 1.9 per cent.
Australian apparel and footwear business Accent Group managed to lift its sales and profit in the first half, but suffered a 100 basis point drop in its gross margin.
The group’s total sales – including The Athlete’s Foot franchise sales – hit $845 million for the first half of FY25, with total owned sales at $767 million. Both were up 4.2 per cent and 4.6 per cent respectively.
However, Shein’s financial movements follow similar trajectories among low-price retailers in Australia, with jewellery business Lovisa's sales up 8.8 per cent for the first half to $405.9 million, with gross profit up 11.1 per cent to $334.7 million.
Kmart Group – which manages Kmart and Target – also recorded a performance lift, with sales for the first half up 2 per cent to $6.1 billion, with earnings before tax up 7.2 per cent to $644 million.
The ASIC filings also show that Shein’s Australian arm is controlled by Roadget Business, an entity based in Singapore. The ultimate parent entity is Elite Depot Limited, incorporated in the Cayman Islands.
Shein paid just over $1 billion to Roadget in 2024.
Australian Fashion Council CEO Jaana Quaintance-James told Ragtrader that Shein's surge to over $1 billion in annual sales in Australia in just three years poses a significant challenge to the local $28 billion fashion industry.
"The playing field isn’t level," Quaintance-James said. "Global ultra-fast fashion platforms benefit from structural advantages (including lighter regulatory requirements, questionable supply chain practices and duty thresholds) that enables aggressive pricing undercutting the true cost of responsible production.
"By contrast, Australian brands operate under stringent local standards for quality, labour, and environmental responsibility, all while facing global supply chain pressures, rising costs, and evolving consumer demands across both physical and digital retail."
She added that Australian fashion is built on craftsmanship, innovation, and sustainability - values that resonate highly with global consumers.
"Our industry employs 500,000 Australians, generates $7.2 billion in exports, and contributes $15 billion in wages annually," Quaintance-James said.
"With Shein and similar platforms now redirecting billions in consumer spending away from local businesses, it’s critical that we strengthen the competitive position of Australian fashion. This includes investing in local manufacturing to reduce reliance on fragile global supply chains and amplifying the quality, longevity, and ethics that ultra-fast fashion simply can’t match.
"The $1 billion spent with Shein last year could have supported thousands of local jobs, businesses, and communities - a reality that demands greater focus from both industry and governments as we work toward our projected growth to $38 billion by 2035."