Shein increasing stake in domestic production

Shein is continuing to ramp up investment in its Guangzhou-based supply chain, the Chinese government said, in response to reports that the fast-fashion retailer plans to shift part of its production overseas.

Local authorities said Shein, a global company that grew out of Guangzhou, continued to see export growth from the city in the first quarter.

Bloomberg News reported on Tuesday that Shein was facing opposition from the Chinese government over its plans to shift some production out of the country, citing people familiar with the matter.

Shein became the world’s third-largest fashion retailer in 2024, overtaking Zara, H&M and Uniqlo, and was the fastest-growing fashion retailer this year, according to data from consultancy GlobalData, which cited the company’s digital-driven, on-demand supply chain as a key driver.

STAFF REPORTER