Shein Opens Its Network to Other Fashion Companies

Shein is now offering other fashion brands access to its garment production network in China, turning it into a service, according to Bloomberg. The goal is to create a new growth pillar as US tariffs limit its retail activity.

Participating companies can leverage Shein's supply chain, with factories capable of producing new designs in 5-7 days, provided they open a store on its online marketplace. Approximately 20 brands have joined, including French brand Pimkie and Filipino designer Jian Lasala's brand.

Shein offers sample development, warehousing, sales, and order fulfillment, services typically inaccessible to smaller companies. The program, called Xcelerator, aims to help brands overcome challenges and gain access to global sales.

This strategy comes as Shein's US sales are uneven after the repeal of de minimis tax exemptions. Despite revenues of nearly $10 billion in the first quarter, momentum has weakened.

The company, based in Singapore, plans to list on the Hong Kong Stock Exchange after delaying US IPO plans due to scrutiny of its supply chain and labor practices. Analysts note that its production network in China could be a driver of sustainable growth.