This week, the founder of Shein appeared in public for the first time and delivered a strong message. The company is still closely tied to China.
Xu Yangtian, speaking at a business conference in Guangzhou announced that Shein would invest 10 billion yuan (about $1.25 billion) in Guangdong.
Planned Investments and their Local Impact
Guangdong has many garment factories in China. Shein’s model of fast fashion is powered by these factories. These factories allow Shein to transform online fashion trends into affordable clothes in just a couple of weeks.
Xu stated that Shein’s activities in the province support over 600,000 employment. Guangdong, he said, is a fertile land for long-term development and innovation.
Shein announced its first 10 billion-yuan investment program in 2023.
Global Expansion & Strategic Shift
Shein’s focus has been shifting overseas in recent years. In recent years, Shein has shifted its focus overseas. Its headquarters moved to Singapore. The company also explored listing on stock exchanges in New York and London.
Despite this shift, Xu’s speech demonstrated that China continues to play a key role in Shein’s strategy.
Shein serves clients in over 160 countries. Global expansion brought with it new challenges.
The Trade and Regulatory Challenges
The tensions between Beijing, the West and their governments has increased. Shein felt the pressure.
Donald Trump, the former US president, introduced trade policies that closed a loophole on low-value parcels. This change affected Shein’s model of export, which depends on sending affordable products directly to customers.
European regulators are investigating possible violations of digital law. company claimed to have removed the listings and banned the sellers. It also tightened the marketplace rules.
Protests in Paris arose from the controversy surrounding Shein’s launch of its first concession in France.
Beijing: A clear message
Xu sent a powerful message with his appearance. Shein continues to depend on China for manufacturing even as it expands internationally.
