Xu Yangtian (Xu) is the founder of SHEIN and made his first public appearance ever in Guangdong Province, China. During his presentation, Xu focused on the importance of Chinese manufacturing to SHEIN’s overall growth for both the attendees from China’s government as well as the attendees from within the greater global commerce industry in attendance. Most of Xu’s public appearances in the last ten years have been very few. Xu’s presentation was significant not only to the governmental representatives in attendance but also to the business professionals that were in attendance.
Chris Xu also commented on how positive a business climate exists in China, as well as how many domestic suppliers they have access to within China. Xu stated that if it were not for the efficiency and speed and flexibility of China’s supply chains SHEIN would have never had the ability to grow into one of the world’s largest e-retailers for clothing. Xu stated that the cooperative relationships between designers, manufacturers and logistics and delivery entities allowed SHEIN to deliver fashion clothing globally at such low prices and at such quick timeframes.
Xu, the founder of Shein, has announced that Shein plans to invest approximately RMB 10 billion (USD 1.4 billion) in a new logistics centre and Supply Chain in the Guangdong Province in China, which will allow Shein to enhance digital collaboration between designers, suppliers and manufacturers; improve but increase the overall capabilities of its Logistics operations; and automate some processes related to Logistics.
With the development of this new Supply Chain centre, Shein will be able to better meet customer demands for fast-changing fashion trends and lifestyles, and improve its overall service delivery model through an automated Supply Chain and logistics system.
Shein has experienced dramatic growth over the last few years, and is an affordable clothing retailer serving customers in more than 150 countries. As a part of its business model, Shein produces clothing in very small lots, and posts thousands of new clothing items online for customers to choose from every week. Because Shein can produce and deliver products at such a fast pace, it has positioned itself to be a leader in the global fast-fashion industry.
While Shein plans on expanding internationally, it will likely face greater scrutiny from government regulatory agencies (e.g., North America and Europe) regarding their supply chain transparency as well as compliance with labor regulations. Nevertheless, Xu has stated that the experience of the Chinese manufacturing industry and existing supply chain networks will continue to play a critical role in Shein’s future growth strategy.