China-based fashion retailer brand Shein is planning to build a manufacturing factory in Mexico. It sells its dresses for $10 and tops for 5$. Shein has taken market shares from various other affordable fashion companies.
Fast-fashion giant Shein is making plans to expand outside of China. It intends to build factories in Mexico and set up manufacturing hubs there. Shein is known for pricing 10$ for dresses and 5$ for tops. Several sources have stated that Shein is still facing difficulties while attempting to boost its presence in Latin America; the firm is under more scrutiny from US lawmakers.
Why is Shein Expanding in Mexico?
The factory that will be created will make all types of Shein products. Localizing production will reduce shipping times. Also, the distribution costs for customers in Latin America will decrease. Before that, Shein was considering building its manufacturing network in Brazil.
According to Shein’s Latin American Chairman, Marcelo Claure, “SHEIN’s localization strategy allows us to shorten delivery times to customers while expanding product variety and supporting local economies.” Furthermore, he is planning to explore more nearshoring options.
Shein has a marketing platform in Brazil. Their platform permits all third-party vendors to sell their goods on Shein’s app and website. This similar platform will also be launched in the US before they are rolled out globally.
Reports claimed the newer Mexico factory would not store goods from other third-party sources. Claure has also verified that the company is thinking of bringing its current marketing model to other markets in Latin America.
The Story Of Shein
Shein was founded in Nanjing, China, in October 2008. It mostly manufactured its products there. As of 2022, it has now grown to become one of the leading retailers in the world of fashion. It has taken market shares from other affordable fashion companies. Its headquarters are now in Singapore. Despite being a global brand, Shein continues to face scrutiny from lawmakers in the US due to its supply chain being linked to China.