Shane The company has reportedly committed to investing $271 million over five years in Europe and the UK.
The investment plan comes as fast fashion retailers in preparation Aiming for UK listing, fends off criticism of business model, Reuters report Tuesday (July 9th).
Shein reportedly sources some of its clothing from factories in Turkey, but most of its products come from Chinese suppliers. It is said under consideration Initial public offering After facing political pressure in the United States, it listed on the London Stock Exchange (IPO).
European politicians and textile industry groups have reportedly accused Shine of damaging the domestic industry by saturating the market with clothing priced beyond the reach of domestic retailers and factories.
In addition to brand and corporate support measures, Shain has set aside 50 million euros (about $54 million) for “potential investment in research and development and pilot Shain production facilities in Europe and the UK.” Local Designers According to the report, it will be able to reach a larger market through Shein’s marketplace.
The report said Shane Planning By expanding sales, supply chain Technology, but the company faces cybersecurity risks and possible involvement from the Chinese government.
Because of Shein’s close ties to China (the retailer was founded in China but is now based in Singapore), it has come under intense scrutiny from cybersecurity firms and national security experts who worry that sensitive logistics and customer information could be leaked. Shein’s logistics software is in beta testing with select supply chain customers.
Also this week, PYMNTS reported that Shein’s expansion into e-commerce is hurting its rivals. Ötzi Trying to Reclaiming the Niche Emphasizing its original mission of supporting artisans and craftspeople, the company announced an update to its policies, announcing that instead of the traditional “handmade” or “vintage” labels, it would use broader classifications for products as “made,” “designed,” “sourced,” or “curated” by specific merchants.
“When Etsy launched nearly 20 years ago, it became a mecca for artisans and craft makers, cultivating a community around unique, handmade products,” PYMNTS wrote on Tuesday, “But the platform has since struggled with an influx of mass-produced goods, devaluing brands and frustrating its core sellers.”
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