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As Shein’s global head of public affairs, Leonard Lin is in Rome to meet institutions and possible partners to develop the platform’s business in our country, on the same days in which the Singapore-based e-tailer is valued at around 100 in 2022 billion dollars presents the financing for the Italian projects of Dress For Success, a non-profit committed to female empowerment through clothing.
Shein is 12 years old and although it is very young compared to its competitors, its growth in recent years has been “unexpectedly fast”, as Lin himself says. Now it’s a matter of managing the next phase, which includes a strategy of deeper rooting in local markets, at least in some of the 150 in which Shein is present. «Italy is crucial, it is the third European market for us – underlines Lin -. For this reason, in December we opened our headquarters in Milan and took over the Stradella warehouse (formerly Zalando). But it is also central from a creative point of view: of the 4,600 independent designers involved in our Shein Forging ties with local designers is a way to strengthen those with local customers, better understand their tastes and expectations.”
New production hub in the Mediterranean
Localization also concerns production: Shein produces in China, but is opening hubs close to its markets, such as the one in Turkey to serve Europe, and also lower transport costs, including environmental ones. According to Cargo Facts Consulting, Shein ships 5,000 cubic tons of cargo around the world by air every day. «We are young, sustainability is a path we are taking, we are ambitious but realistic. Among the objectives of our evoluShein program, for example, is a 25% reduction in our greenhouse gases by 2030. We are also learning from the markets in which we operate, such as Europe, and studying new services such as resale and exchange of Shein creations with Shein Exchange, which we will extend to new markets in the coming months.” One way to respond to accusations of encouraging the hyperproduction and hyperconsumption of fashion?
The business model of the Chinese giant
«I believe that many of the criticisms directed at us in this sense are generated by a misunderstanding of our business model – says Lin. We produce on demand and our digitalised and automated system allows us to have very little stock in the warehouse. We are also investing in sustainable materials, such as recycled polyester, trying to make a contribution to lowering the costs that prevent their large-scale use.” The goal is to make the textile supply chain circular by 2050 and at the same time keep the promise that made Shein a global success: low prices, enormous choice, to which to add the theme of inclusiveness. «Not only do our sizes range from XXS to 4XL, but their metrics change depending on the market. For us, fashion must be accessible to everyone, and with a growing world population we still have a lot of room to expand into other markets.”