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Shein achieved high levels of online traffic as well as app downloads in 2022.
Despite a $66 billion valuation cut in its latest funding round, the retailer still posts 40 percent annual revenue growth.
Shein’s net sales reach $10.4 billion.
Rumors suggest that Shein, the textile brand of eCommerce, is analyzing plans to build a factory in Mexico as one of its manufacturing centers outside of China, sources familiar with the matter told Reuters, as it seeks to expand and be closer to the consumers latin americansince they are part of the clients that generate the most profits globally.
Shein in the market
Shein is a company of Chinese origin that was established several years ago in 2012 under the name of SheInside, later changing its name to what we know today in 2015, which allowed it to take off in the clothing industry. market textile and currently has an estimated market value of over $100 billion. The brand stands out for being recognized as the fashion retailer of eCommerce largest in the world and is used by millions of consumers around the world on a regular basis. In addition, part of its success is also due to the promotion of some content creators, since it is common to find videos of people doing the famous “hauls” or creating outfits with garments from this brand that stands out for being cheap. To reinforce this, Shein decided to collaborate with the influencers most followed in Mexico, Kimberly Loaiza, who has a community of 73.5 million followers just on her TikTok account.
Rumors suggest that Shein plans to open a factory in Mexico
Anonymous sources familiar with the matter pointed out that Shein has plans to build a factory in Mexico as one of its manufacturing centers outside of China, and that is that in April, the firm indicated that it would build a manufacturing network in Brazil to serve as a base of global customers.
Notably, a final location for the Mexico site has not been decided, said the sources, who requested anonymity as the discussions are private. According to Reuters, Shein declined to comment on the expansion, but said she is committed to localizing as she adds new ones. markets.
“SHEIN’s localization strategy allows us to shorten delivery times to customers while expanding product variety and supporting local economies,” Marcelo Claure, president of SHEIN Latin America, said in an emailed statement.
The sources also mentioned that the next factory of Mexico will not house items from external vendors. Shein’s president confirmed that the brand is considering taking its “market model to other Latin American markets,” confirming the rumors.
With this initiative, the brand intends to reduce its costs in Latin America. The shipping time could also be shortened.
Shein It has been one of the favorite brands of many because it has trendy designs with very affordable prices; however, the brand has also been criticized as it has a bad reputation for having terrible working conditions for its workers, in addition to the fact that it contributes significantly to the fast fashioncausing a problem for the environment, since it is well known that clothing is the second largest pollutant on the planet.
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