Shein plans to build a new overseas production center in Mexico to boost its productivity, according to Reuters. The plant, which will be used to produce Shein’s own products, is part of the company’s push to localize production, helping to reduce logistics transportation times and lower costs for consumers in Latin America. Previously, Shein also announced the establishment of a manufacturing network in Brazil to serve as its global customer base. The final location of the Mexican site has not been determined, according to a person familiar with the matter.
Shein plans to expand with $2 billion raised from Mubadala and Sequoia Capital China funds, which will go toward the company’s plan to consider a U.S. listing, according to industry sources. Although Shein’s valuation dropped to $66 billion in its latest funding round, its annual revenue still grew by 40%. Shein, in an emailed statement, declined to comment on the plan, but said it is committed to localization as it expands into new markets.
Shein provides an online marketplace platform in Brazil that allows third-party merchants to sell their goods on Shein’s website. The next step is to launch a similar market in the US before rolling it out globally. The upcoming Mexican plant will not accept products from third-party merchants, and Shein is considering taking its “marketing model to other markets in Latin America,” the source said.
Post time: May-25-2023