Shein Beats Europe’s Biggest Fashion Companies with 48% Growth While ASOS Goes Down

The fashion retail scene in Europe now has clear winners and losers, according to a new year-on-year analysis from ECDB. The data reveals three distinct performance categories that show how customer preferences are shifting.

Shein stands out as the only “soaring growth champion.”

The Chinese fast-fashion giant posted positive growth every single month in 2024, with annual sales jumping 31.6%. Even its weakest month showed 5.2% growth, while December delivered an impressive 48% increase compared to the previous year.

Most months saw Shein growing between 20% and 40% compared to the same period the year before. European consumers keep buying despite ongoing criticism about labour practices, fake pricing, and environmental impact. The numbers are clear – demand for ultra-cheap fashion remains strong.

Established Brands Struggle

H&M and Zara used to dominate European fashion, but now they’re just “steady incumbents.” Their performance tells a different story.

H&M’s online sales actually dropped 0.6% annually, while Zara managed modest 4.4% growth. Both brands followed similar patterns throughout the year – some months up, others down, with mostly flat or declining performance compared to 2023.

The only bright spot came early in 2025, when both saw slight improvements from January to March. But this wasn’t enough to offset weaker performance in other months.

Both companies still operate extensive physical store networks, but their online platforms are clearly struggling to compete with newer players offering lower prices and faster trends.

ASOS Faces Serious Problems

ASOS represents the “underperformer” category in the most dramatic way. The British online retailer saw sales crash 16.2% annually, with negative growth in almost every month.

Only August 2024 provided relief, with 6.9% growth. Every other month showed decline, creating a consistent pattern of falling sales that spans multiple years.

The company faces pressure from several directions. Low-cost competitors like Shein, Trendyol, and Uniqlo are taking market share. Meanwhile, marketplaces like Temu and AliExpress offer even cheaper alternatives.

ASOS opened physical stores after the pandemic, but this strategy hasn’t stopped the decline. The brand that once led online fashion for young Europeans now looks increasingly outdated.

The data shows European fashion retail splitting into two worlds: ultra-cheap fast fashion versus established brands trying to hold their ground. Right now, the low-cost players are winning.

Data sourced from ECDB