How could Shein's sales dominance affect H&M's market position?
Shein's sales dominance may increase competitive pressure on H&M. Shein's reported sales dominance, driven by its ability to sell cheaper and faster than other retailers, increases competitive pressure on H&M. This pressure is fueled by Shein's ability to undercut local retailers and capture significant market share, as seen in South Africa where the company captured R7.3-billion in sales by the end of 2024.
- Effect
- Mild negative
- How direct
- Brind's reasoning
- When
- Over the long term
- The story
- No new developments lately
How it reaches H&M
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The Southern African Clothing and Textile Workers’ Union (Sactwu) presented a motion to the Congress of South African Trade Unions (Cosatu) calling for the South African government to ban international e-commerce platforms Shein and Temu. Sactwu president Susan Khumalo stated that Shein and Temu now sell more products than other global retailers in South Africa.
The full event1independent outlet -
Shein and H&M are direct competitors in the fast fashion market, vying for price-sensitive customers globally. The increased sales dominance of a key competitor puts pressure on H&M's revenue and market position.
No report states this step directly. Brind drew it from the reporting on each side of it, so treat it as an informed guess.
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Swedish multinational clothing-retail company
Everything about H&M
Tap any step to see the evidence behind it.
The facts so far
As reported. Each one links to where it comes from.
- Shein reported higher product sales than global competitors in South Africa.dailymaverick.co.za
- Shein and Temu captured R7.3-billion in sales by the end of 2024 in South Africa's e-commerce market.dailymaverick.co.za
- Shein previously grew between 30% to 50% annually but slowed to just 11% in 2025 after SARS tax changes.dailymaverick.co.za
Why it matters
For H&M, the fast fashion market is highly competitive, and Shein's demonstrated ability to sell cheaper and faster poses a direct threat to its market share and revenue. The pressure comes from Shein's operational model, which leverages low overheads and aggressive pricing to capture price-sensitive consumers.
This dynamic is part of a broader global trend where ultra-fast e-commerce platforms are challenging established retailers. Shein and Temu have had a larger impact on markets like the US, French, and Latin American markets, indicating that this competitive shift is not isolated to South Africa.
What we don't know yet
- Will H&M adjust its pricing or supply chain to counter Shein's low-cost model?
- Will regulatory changes in key markets curb Shein's aggressive growth?
What would change this answer
— Other considerations
Beyond this explainer
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Who else could feel it
Other possible ripples from the same event.
- African National CongressPossibleShein's success may force the ANC to address job losses and trade policy
- parliamentPossibleShein's sales success increases pressure on South African parliament
- PrimarkPossibleShein's growth may intensify competitive pressure on Primark's market share and revenue.
- GuangzhouPossibleIncreased global sales may boost production and logistics in Guangzhou.
Reporting
- dailymaverick.co.zaOct 15
Keep going
Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.