Shein appears to have become the top online retailer for fashion in Spain, where it has surpassed Zara and H&M, as well as in Italy, Greece and Portugal, according to Diffusion Sport, which cites figures from the consultancy ECDB.

Indeed, the e-commerce specialist – of Chinese origin but Singaporean headquarters – is apparently making gains in all European markets, raking in annual net sales on the continent of €8.2 billion in 2023. The second-biggest pile, smaller by €4 billion, belongs to H&M.

In Spain alone, however, Shein lost a point in market share last year, going from 12 to 11 percent, but its closest competitors lost market share as well – Zara going from 8 to 6 percent, H&M from 4 to 3 percent. All other chains together increased their share from 76 to 80 percent.

On this same national market Shein was the top retailer of fast fashion, with €660 million in net sales, followed by Zara (€335m).

Shein’s biggest Far Eastern competitor is Temu, which, according to the digital-marketing agency Semrush, managed over 2023 to raise its total users from 678,000 to 10.8 million.

As we have reported, Shein has been singled out by the French Parliament in a proposed law to curb fast fashion, while the US House of Representatives has been pointing a finger at both Shein, with respect to tariff law, and Temu, over allegations of forced labor in its supply chain.

Late last month the European Commission (EC) notified Shein that it would henceforth be considered a Very Large Online Platform (VLOP) under the Digital Services Act (DSA) – because the 45 million EU users it has reported itself as having to the EC exceed the VLOP threshold.

Shein now has four months (until the end of August) to undertake “more diligent surveillance of illegal products,” implement “enhanced consumer protection measures,” and demonstrate “more transparency and accountability.” In other words, it must begin to submit risk assessments; modify its terms of service, interface and algorithms; beef up its internal procedures; evaluate the effects of its business on the health of its customers, especially minors; submit to third-party audits; and so forth.

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