Fast Fashion Brand SHEIN Continues To Invest in Domestic Supply Chain

Fast fashion brand SHEIN continues to invest in domestic supply chain

Recently, the well-known consulting firm GlobalData released data showing that SHEIN has become the fastest growing fashion retailer in 2024 by virtue of its digital on-demand flexible supply chain advantages, and has surpassed ZARA, H&M and Uniqlo to become the world's third largest fashion retailer. SHEIN's growth is rooted in the strong supply chain system in Guangzhou. In turn, SHEIN has also driven the upgrading of the entire industrial chain.

It is worth noting that the news of "SHEIN supply chain transfer" has been reported by foreign media recently. In this regard, the Guangzhou Municipal Bureau of Commerce said that as a global enterprise growing up from Guangzhou, SHEIN continued to increase its distribution and investment in the domestic supply chain with Guangzhou as the core. In the first quarter of this year, the export volume in Guangzhou continued to grow, which undoubtedly prevented the rumors of supply chain transfer from breaking.

According to incomplete statistics, SHEIN has promoted the employment development of millions of upstream and downstream people by driving a large number of industries such as domestic trade and export, production and manufacturing, warehousing and logistics, and transportation. On the other hand, with the deepening of SHEIN's platformization strategy, SHEIN has helped more third-party brands and businesses explore the international market through cross-border e-commerce through the mode of "cross-border e-commerce+industrial belt" in addition to its own brand.

At present, SHEIN has become a demonstration province for SHEIN Platform Industrial Belt to go to sea. By 2024, the platform will have covered all 21 prefecture level cities in Guangdong.

Currently, Guangzhou is in the initial stage of accelerating the construction of the "12218" modern industrial system. As a leading enterprise in the new industrial chain, Xiyin Institute's self-developed digital system and innovative on-demand flexible supply chain model have not only enhanced the competitiveness of independent brands in the market, but also driven the informationization transformation of the entire industry. A large number of traditional clothing production and manufacturing factories have been upgraded to full chain digital enterprises.

At the same time, SHEIN has also continued to build a smart supply chain system, investing more than 10 billion yuan to deepen the smart supply chain matrix centering on Guangzhou and radiating Zhaoqing, Foshan, Jiangmen and other cities.

It is reported that this year alone, SHEIN's two major smart supply chain projects will usher in important progress. One is the Xiyinwan District Smart Industry Park located in Zhaoqing, which aims to build a distributed smart logistics industry park with international and modern levels. It is expected to officially enter and use the park within the year and has recently completed project acceptance.

The Xiyinwan Western Smart Industrial Park, also located in Zhaoqing and with an investment of 3.5 billion yuan, plans to build a smart park that integrates intelligent sorting centers, order distribution centers, and intelligent manufacturing factories. It is also under construction and is expected to be completed by the end of this year.

In addition, the supply chain project in SHEIN Bay Area, located in Zengcheng, Guangzhou, was officially started at the end of September last year. The investment in the first phase of the project reached 3.69 billion yuan, and the total investment in the third phase of the project reached 10 billion yuan. Through the "green, intelligent, and automatic" integrated supply chain, the global delivery center was built to provide core support for SHEIN's global sales. After the third phase of the project reached its full capacity, the annual export volume is expected to exceed 100 billion yuan, and it is estimated that the peak period for introducing industrial talents can reach about 100000 people.