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Shein Tops Up Supply Chain Fund With $55 Million and a Focus on Faster, More Efficient Manufacturing

Person holding Shein app on their phone.
Shein plans to spend $70 million to support and train suppliers over the next five years. (Shutterstock)

The ultra-fast-fashion giant plans to spend $70 million over the next five years to train and support suppliers and develop leaner production models.

The company said Wednesday it will step up investment in a supplier programme launched last year after a UK television documentary claimed it found labour abuses at two supplier factories. It initially pledged $15 million to upgrade hundreds of facilities in its supply chain, but is now adding $55 million to the fund.

Most of that money will be spent on a new R&D and training centre focused on driving even more efficiency into Shein’s production model. But the company also plans to spend $10 million on housing and recreation facilities and $5 million to build and staff 60 childcare centres in the communities where its suppliers operate.

Learn more:

Shein’s Years of Explosive Growth Are Over. What’s Next?

The fast-fashion retailer has seen sales decline, as the novelty of its endless selection of trendy, ultra-cheap clothes wears off.

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