Workflow
Supply Chain as a Service
icon
Search documents
Shein Opens Its Supply Network to Fashion Brands to Boost Growth
Yahoo Financeยท 2025-09-18 02:54
Core Insights - Shein Group Ltd. is diversifying its revenue streams by offering access to its apparel manufacturing network in China to other fashion brands, responding to pressures on its retail business from US tariffs [1][5][7] - The initiative, named Xcelerator, allows brands to utilize Shein's supply chain, which can produce new designs in 5-7 days, provided they open a store on Shein's online marketplace [2][6] - Currently, around 20 brands, including Pimkie and Jian Lasala, are participating in this program, which has been in development for nearly two years [3][4] Business Model and Services - Shein's new offering includes not only manufacturing but also sample development, warehousing, sales, and order fulfillment, which are typically inaccessible to smaller brands at competitive costs [4] - By transforming vendor relationships into a product, Shein aims to create a new growth pillar as its self-branded sales face limitations due to changes in US tax exemptions for small parcels from China [5][6] Competitive Landscape - Unlike platforms like Alibaba.com, which provide open access to manufacturers, Shein's supplier access is contingent upon participation in its marketplace, aiming to attract more fashion brands [7] - The initiative is designed to leverage Shein's extensive apparel supply chain network in southern China amid increasing competition and a volatile trade environment [7][8]