Published • loading... • Updated
Shein finds there's no place like China after Vietnam warehouse experiment disappoints
The retailer is pulling suppliers back to China as only a third of the planned site is in use and layoffs have spread, sources said.
- IPO-Bound Shein drastically scaled back its Vietnam warehouse lease from 15 hectares to 6 hectares, reflecting a significant shift in the retailer's global supply chain strategy.
- New U.S. tariffs of 12.5% imposed last month on China and Vietnam, combined with the end of the de minimis duty-free exemption for shipments under $800, undermined the case for Vietnam expansion.
- Suppliers reported that finding local labor proved difficult, and manufacturing in Vietnam lacks the efficiency of Shein's Chinese network, where production margins can be as little as 1 yuan per piece.
- Shein is intensifying its investment in Guangzhou and the broader Guangdong province, pledging over 10 billion yuan to upgrade its smart supply-chain system.
- While pursuing a Hong Kong IPO, Shein faces growing competition from Amazon and PDD Holdings-owned Temu, as operations manager Ping He noted the company "is not the prettiest boy in town anymore.
Insights by Ground AI
14 Articles
14 Articles
By moving production from China to Vietnam, Shein hoped to have an answer to the hefty US tariffs on Chinese goods by the end of 2024.
·Amsterdam, Netherlands (Kingdom of the)
Read Full Article
FOCUS: Shein finds there's no place like China after Vietnam warehouse experiment disappoints
Just over a year ago, Chinese ultra-fast fashion retailer Shein began leasing 15 hectares of warehouse facilities — equivalent in size to 21 soccer pitches — near Ho Chi Minh City, part of a grand experiment to make Vietnam a major export base.
·Tokyo, Japan
Read Full Article
The Mighty 790 KFGO+2 Reposted by 2 other sources
Shein finds there’s no place like China after Vietnam warehouse experiment disappoints
By Francesco Guarascio, Sophie Yu and Casey Hall HANOI/GUANGZHOU, China, Aug 10 (Reuters) - Just over a year ago, Chinese ultra-fast fashion retailer Shein began leasing 15 hectares of warehouse facilities — equivalent in size to 21 soccer pitches — n...
Coverage Details
Total News Sources14
Leaning Left1Leaning Right2Center7Last UpdatedBias Distribution70% Center
Bias Distribution
- 70% of the sources are Center
70% Center
C 70%
R 20%
Factuality
To view factuality data please Upgrade to Premium
