Chinese fast fashion company Shein launched its first offline pop-up store, “Style in Shein,” in Korea at 11 AM on July. 8. Known for its rapid production and sale of affordable clothing, Shein is particularly popular among trend-sensitive teens and young adults. Choi Hee-young, a 16-year-old visitor who attended with her mother, commented, “I receive a 50,000 won monthly allowance. I enjoy buying clothes, and Shein offers items priced at thousands of won, so I frequently shop on their platform. The pop-up was fantastic because I could try on the clothes.”
The Shein pop-up store was spread across two floors. The first floor featured dresses and Instagram-friendly event spaces like photo zones, with posters of Korean actress Kim You-jung, a global ambassador for Shein, decorating the walls. The second floor displayed a range of clothing items, from crop tops to jeans and cargo pants, and included four fitting rooms.
The clothes featured price tags and QR codes, but some product names were awkwardly translated; for instance, an off-shoulder shirt was labeled as a “shoulder-bared shirt.” Additionally, counterfeit items resembling brands like Polo Ralph Lauren, KIRSH, and Fred Perry were openly sold for around 10,000 won. An industry insider noted, “Despite Shein’s ambition to enter the Korean market, they seem to lack a deep understanding of it. The company appears to believe that low prices alone are enough.”
Shein currently boasts approximately 300 million monthly users across around 150 countries, including the U.S. and Europe. According to the Financial Times, Shein’s revenue last year was about $45 billion (62 trillion won), with a net profit of $2 billion (2.7 trillion won), surpassing the sales and profits of major fast fashion brands Zara and H&M. Shein’s revenue is projected to exceed $58.5 billion by 2025, potentially outstripping the combined revenue of Zara and H&M.
Despite the anticipation, there was no significant rush at Shein’s pop-up store on its opening day. Only eight people were present at 11 AM, and by 1:30 PM, around 30 visitors had stopped by. A young office worker in her twenties, surnamed Park, commented, “The clothes are attractive and definitely cheap, but I didn’t buy anything after seeing the notice about an additional 10% VAT. Initially, I thought an item was 8,000 won, which seemed affordable, but realizing I had to pay 8,800 won with the VAT made me feel like I was losing money.”
Shein clarified that they applied VAT separately for this pop-up since the products were sold domestically. Currently, the South Korean government exempts customs duties and VAT for overseas direct purchases up to $150 per transaction (up to $200 for U.S. products) under the “Exemption from Customs Duties for Small-Sum Goods” policy.
