Online fashion giant Shein plans US$2 billion global supply chain base in Chinese port hub
- The Chinese retailer with a major following among American consumers is set to expand its supply chain facilities in Guangzhou, a government document shows
- The company has found success leveraging China’s manufacturing prowess to serve fast-fashion consumers overseas
Shein, the fast-growing Chinese fast-fashion online retailer, plans to invest 15 billion yuan (US$2.3 billion) to build a global supply chain centre in the southern Chinese port city of Guangzhou, a new government plan revealed.
The project will cover an area as big as three football fields, according to an official list published Tuesday by the provincial Development and Reform Commission, showing key construction projects slated for 2022 in Guangzhou. As of Friday, however, the document could no longer be found on the government website.
Shein declined to comment on the plan when reached by the South China Morning Post on Friday.
Founded in 2008 in the eastern city of Nanjing by former wedding dress exporter Chris Xu, Shein now sells women and men’s wear, accessories, and beauty products in more than 200 countries.
Last year, the company dethroned Spain’s Zara and Sweden’s H&M as the top-selling fast-fashion retailer in the US, according to data tracking company Earnest Research. It is currently the world’s largest online-only fashion company, according to research firm Euromonitor International
As of this week, Shein is the second most downloaded iOS shopping app in the US and Canada, trailing only e-commerce giant Amazon, according to market intelligence platform Similarweb. The app, however, is unavailable in China.
The retailer is currently valued at US$50 billion, with annual sales reaching 60 billion yuan in 2020, according to a company job posting.