In a bustling factory in Panyu, southern China, new garments emerge every few minutes, adding to stacks of leopard-print skirts, winter coats, and vibrant tank tops—all produced for a single retailer: Shein.
This scenario is common across thousands of workshops in Panyu, a hub for Shein’s manufacturing operations. Each finished product heads to local warehouses, then travels by truck to Guangzhou airport, before embarking on cargo flights destined for Europe or the U.S. There, a sophisticated distribution network ensures that online orders reach young consumers swiftly.
Timeliness is critical. “Dealing with Shein orders is challenging. We have to complete everything within seven days, which often requires overtime,” noted a factory manager overseeing a predominantly female workforce.
Shein’s mastery over this rapid supply chain—evidenced by visits to multiple factories and discussions with industry experts and employees—has propelled it to become one of the world’s leading retailers. The China-based company reported over $2 billion in profits for 2023 and achieved sales of $45 billion through its website. Currently, Shein is preparing for an initial public offering in the UK, following a valuation of $66 billion in its most recent funding round.
However, Shein now faces increasing pressure regarding its business model and operational practices.
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