LONDON, July 9 (Reuters) – Fast fashion retailer Shein said it would invest 250 million euros ($271 million) over five years in the UK and Europe as the company battles criticism of its model based around flying cheap clothes and accessories from factories in China direct to shoppers worldwide.
Shein said on Tuesday it has earmarked 50 million euros for “potential investments in R&D or pilot Shein production facilities in Europe or the UK,” as well as initiatives to help brands and designers from the region reach a bigger market through Shein’s marketplace.
Shein, known for its $5 tops and $10 dresses, reportedly recorded sales of about $45 billion in 2023 and was valued at $66 billion in a fundraising round last year.
Talking to Reuters, Shein executive chairman Donald Tang declined to give further details about where the company was looking to start sourcing from.
The company was “keeping options open” he said, but he noted the facilities would most likely be suppliers, as opposed to being owned and operated by Shein.
He said the share of Shein products made in Turkey is currently insignificant compared to China, but is growing fast.
Shein also said it would bring more UK and European artists and designers into its incubator programme.
China-founded Shein also said it was launching a “circularity fund” with an initial investment of 200 million euros to support start-ups and businesses throughout the region that are developing textile recycling technologies.
“Given Shein’s scale and reach … Shein can become a catalyst for widespread adoption of these solutions across the industry,” said Tang.
It is inviting businesses, financial institutions and sovereign wealth funds to co-invest in the fund.
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Reporting by Helen Reid and James Davey, Editing by Louise Heavens
Our Standards: The Thomson Reuters Trust Principles.
