Shein Expands Supply Chain to Turkey and Brazil, Aiming to Serve Europe and Latin America Markets

Shein brings its supply closer to consumer markets. The Chinese giant of online fashion distribution, one of the major concerns in the sector in recent years, has begun to reproduce its productive structure in China (core in its business model) in other markets. The group weaves a network of suppliers in Türkiye and Brazil.

As sources from the Singapore-based company explained to Modaes, The aim of this movement is to take yours with you find to the countries where he distributes his clothesso that the production made in Turkey was distributed in Europe and made in Brazil, in Latin America.

“It’s about fostering connections, making the world feel a little smaller, and making sure orders arrive quickly at everyone’s doorsteps,” said Leonard Lin, director of public affairs. global Shein.

The company’s plans include developing its product structure in these two markets to the extent that both sources serve Europe and Latin America only, retaining production from China to the United States.

Shein wants, in the medium term, the two sources to serve only Europe and Latin America

The supplier network is critical to Shein’s business model. The company works on demand with more than 5,000 suppliers in China. Through a digital system, the company analyzes the main trends of the market in real time, so it is able to produce collections in weeks and even days, guaranteeing a good response to the market and therefore reducing stock and surplus.

“At Shein, our mission is to offer the best shopping experience to our customers in more than 150 countries around the world, and we do that thanks to the efficiency of the business model on- our demand,” said Lin. affirming” its presence in all markets, “renewing our approach from offering personalized products to local logistics centers to shorten distances with our customers. ”

The local strategy has led Shein to create a large logistics center in Poland to serve European customers, along with distribution centers in key markets in the region. At the beginning of 2023, the company leased 55,000 square meters to the real estate logistics group Panattoni in the Park Wroclaw South Hub complex.

The company has launched a new logistics center in Poland

Decision centers

Not only does Shein want to bring its procurement and logistics structure closer to consumer markets, but also decision-making centers. Although the company’s divisions are centrally located in Singapore, the group weaves a network of offices in key markets.

In Europe, the company has expanded its presence with offices in ten cities in different countries, such as France, the United Kingdom, Germany, Belgium, Portugal or Spain. In the European region, the company currently has 550 employees.

In Spain, Shein launched an office in Madrid last year and is currently building its local team, which already includes employees from areas such as brand activationcommunication or marketing.

With the development of the network of offices in Europe, the company is trying to get closer to customers, but also for the institutions, doing lobbying work in Brussels. Shein will have to adapt its business model to meet growing European legislation and is up against state legislative changes such as France’s proposal to impose taxes and ban advertising by mobile operators. fast fashion.

The group has established ten offices in Europe, with a total of 550 employees

Shein has grown rapidly since its inception and has become one of the leading fashion distributors. at an international level. In 2023, the company recorded a net profit of more than $ 2 billion, more than double that of 2022, when they earned € 700 million.

In 2023, the total transaction value (GMV) of the company, which markets ultra-fast fashion produced in China worldwide through its platform, reached $45 billion.

The group, about which little more information is beginning despite its secrecy, is waiting for regulators in China and the United States to approve its listing on the New York Stock Exchange. While he waits for this process to be unhindered, Shein has also begun to consider a possible listing on the London Stock Exchange.