Shein Officially Launches Xcelerator Program; 22 Industry Organizations Hit Back

Core Insights - Shein has launched its Xcelerator program in France, the U.K., and China, partnering with French brand Pimkie to help fashion brands scale digitally and expand internationally while retaining control over their intellectual property [1][22] Company Strategy - Pimkie's CEO Salih Halassi stated that the partnership is part of a recovery strategy aimed at returning the brand to profitability by 2026, targeting annual revenue growth from 150 million euros to 300 million euros by 2028, with 100 million euros expected from digital sales through the Shein partnership [2][3] - The partnership will develop dedicated Pimkie collections for sale on Shein's platform, creating a distinct product line separate from Pimkie's in-store offerings [4][5] - The Shein line will not be advertised in Pimkie's physical stores, reflecting a strategy to broaden online product assortment, with an expected increase from 500 styles in physical stores to up to 3,000 stock keeping units via Shein [6] Market Impact - European fashion industry groups have expressed concerns over Shein's entry into the market, citing that ultra-fast-fashion brands like Shein and Temu account for 5% of sales in Europe and 20% of online sales, with Shein sending 4.5 billion parcels to Europe in 2024 [8][9] - The French Textiles Industry Union highlighted the negative impact of fast fashion on local production and sales, calling for regulatory measures to address the challenges posed by companies like Shein [9][12] Regulatory Environment - European federations are advocating for tariffs and taxes to curb Shein's influence, with proposals for a tax on small parcels and the elimination of the de minimis rule, although changes may not occur until 2028 or later [15][16][17] - Shein's Xcelerator program is designed to provide support across various operational aspects, drawing on a successful pilot program that generated 230 million euros in revenue over two years with another brand [18][19][20]