As Shein faces challenges, which US brands stand to gain?

The recent announcement that the Biden administration would crack down on the use of a trade laws allowing low-value shipments into the US could have significant implications for brands like Shein. The de minimis loophole has helped Shein ship millions of low-cost items to American customers without facing import duties. New rules are expected to change this, especially for products from China that are subject to tariffs. If the regulations go into effect, they may lead to higher prices for Shein's products, which could shift customer preferences to other brands.

Data from YouGov BrandIndex shows where Shein's Current Customers are most likely to shop. Among all US adults, 24% of Shein's customers shop at Old Navy, 17% at H&M, 13% at Zara, 12% at American Eagle, and 11% at Gap. These brands stand to gain if customers look for alternatives.

Shein’s other brand metrics from October 2022 to October 2024 show mixed results. Its Value score, which reflects whether consumers think a brand represents good value for money, dropped among women by 3.9 points from 5.4 to 1.5 during this period.

Impression scores, which ask consumers if they have a generally positive or negative feeling about the brand, also decreased by 4.8 points, from 3.5 to -1.3 among women.

Similarly, Shein’s Quality score, which measures whether consumers believe the brand offers good or poor quality, fell 4.8 points from -4.2 to -9 among all US adults and 8.5 points from -6.6 to -15.1 among women.

Despite these negative trends in brand perception, Shein's Consideration score, which reflects whether consumers would consider buying from the brand in the future, grew. Among all US adults, it rose from 8.6 to 12.7 (+4.1 points), and among women, it went from 13.4 to 17.5 (+4.1 points).

While Shein's brand perceptions may have taken a hit, its ability to attract future buyers remains strong. This suggests that even with regulatory changes that could affect pricing, Shein might still retain a considerable portion of its customer base. However, competitors like Old Navy, H&M, and Zara are well-positioned to benefit from any shifts in consumer preferences, especially if Shein's price increases lead shoppers to seek more affordable alternatives.

Methodology: YouGov BrandIndex collects data on thousands of brands every day. Scores are based on an average daily sample size of 671-5907 US adults between October 1, 2022, to October 1, 2024. Figures are based on a 12-week moving average.