Shein Invests 10 Billion Yuan in Guangdong to Boost Fashion Hub Amid Controversies

February 25, 2026
Shein Invests 10 Billion Yuan in Guangdong to Boost Fashion Hub Amid Controversies
  • In a live address at the Guangdong High-Quality Development Conference in Guangzhou, the founder laid out Guangdong as the powerhouse behind Shein’s expansion, emphasizing the region’s industrial ecosystem as foundational to the company’s growth.

  • Xu’s public appearance marks a shift in Shein’s narrative to embrace Chinese roots, contrasting with the earlier global-brand portrayal centered in Singapore.

  • Europe remains a focus with openings in France, including a Paris concession that sparked protests, with plans to open additional stores in other French cities.

  • Shein announced a 10 billion yuan investment in Guangdong to build a high-tech fashion hub, a project announced in 2023, aimed at strengthening supply chains and creating a world-class fashion industry cluster in the province.

  • The piece notes ongoing controversy surrounding Shein’s operations, including past criticisms and protests related to its market strategies and product concerns.

  • Xu highlighted that Guangdong’s factories underpin Shein, supporting more than 600,000 local jobs and enabling rapid trend-to-product cycles through its integrated supply chain and manufacturing network.

  • Shein’s growth model centers on on-demand, small-batch production (about 100–200 units) with a highly automated process and real-time market feedback guiding manufacturing and replenishment.

  • The company maintains long-term relationships with over 5,000 contract manufacturers and uses proprietary supply chain technology to ensure visibility into capacity, inventory, and demand, aiming for a roughly 10-day design-to-production cycle.

  • The European Union is investigating Shein for potential digital-law breaches, including past listings of childlike sex dolls; Shein says it removed the listings, banned sellers, and tightened platform rules.

  • Shein shifted its headquarters to Singapore years ago and has pursued stock listings in New York and London, signaling a move away from China despite renewed emphasis on its Chinese roots.

  • This investment and Xu’s remarks follow years of relocation of its base and ongoing efforts to expand to more than 160 countries while pursuing international listings.

  • Shein was valued at about 365 billion yuan (roughly USD 53 billion) and ranked among the world’s top unicorns in 2025.

Summary based on 5 sources


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