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Online Fashion Giant Shein Plans US$2 Billion Global Supply Chain Base In Chinese Port Hub

Online fashion giant Shein plans US$2 billion global supply chain base in Chinese port hub

Image Source: SCMP

  • According to a government document, the Chinese retailer, which has a significant following among American shoppers, plans to expand its supply chain facilities in Guangzhou, China.
  • Utilizing China’s manufacturing capabilities to supply fast-fashion customers in other countries has proven to be a successful strategy for the corporation.

In a new government proposal, it was disclosed that Shein, the rapidly expanding Chinese fast-fashion online retailer, planned to spend 15 billion yuan (US$2.3 billion) to establish a worldwide supply chain headquarters in the southern Chinese port city of Guangzhou, according to Reuters.
According to an official list issued Tuesday by the province Development and Reform Commission, which shows essential building projects scheduled for completion in Guangzhou by 2022, the project would span an area equivalent to three football fields. Although the paper was still available on the government’s website on Friday, it was no longer accessible.

Established in 2008 in the eastern city of Nanjing by Chris Xu, a former wedding dress exporter who showed Shein, the company currently offers women’s and men’s clothing, accessories, and beauty goods in over 200 countries.
According to data monitoring firm Earnest Research, the business dethroned Zara of Spain and H&M of Sweden as the top-selling fast-fashion store in the United States last year. According to research agency Euromonitor International, it is presently the world’s biggest fashion brand that solely sells its products online.

According to market intelligence company Similarweb, as of this week, Shein is the second most downloaded iOS shopping app in the United States and Canada, following only e-commerce behemoth Amazon in terms of downloads. The app, on the other hand, is not accessible in China.
According to a job offering on the company’s website, the shop is presently valued at US$50 billion, with annual sales expected to reach 60 billion yuan by 2020.
Reuters stated that Shein was planning an initial public offering in New York this year in a report published last month. Xu was considering changing his citizenship to avoid new Chinese regulations that make it more difficult for domestic companies to go public in foreign markets.

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