Shein gets go-ahead to build US$514-million first phase of new Guangzhou supply chain hub

Local authorities have granted 25 construction approvals for the project’s initial phase, covering a development area of at least 800,000 square metres

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The new infrastructure project looks to deepen Shein’s roots in Guangzhou, where a vast network of small suppliers helped the company’s rise as a global fast-fashion juggernaut. Photo: Shutterstock

Published: 5:30pm, 19 Aug 2024Updated: 1:53pm, 22 Aug 2024

Chinese-founded fast-fashion online retailer Shein has received the go-ahead from local authorities in Guangzhou, capital of southern Guangdong province, to build a new supply chain hub in the city’s Zengcheng district.

Shein, established in 2008 by publicity-shy Chinese billionaire Xu Yangtian, was granted 25 construction approvals for the so-called “headquarters project” involving a total investment of 3.69 billion yuan (US$514 million) for the initial phase, according to an announcement last week by the district’s planning and natural resources bureau.

The Singapore-based e-commerce firm will build a smart logistics park at the site, which will integrate warehousing, stocking, picking, distribution, shipping and settlement services, according to the announcement. The project’s first phase spans 49 hectares and covers a construction area of at least 800,000 square metres.

A Shein representative was cited in the announcement as saying that the company will start construction as soon as possible, with an eye to advancing the development of Zengcheng district’s cross-border e-commerce economy.

A view of a Shein pop-up store at a mall in Singapore on April 4, 2024. Photo: Reuters

The new infrastructure project looks to deepen Shein’s roots in Guangzhou, where a vast network of small suppliers helped the company’s rise as a global fast-fashion juggernaut that competes against the likes of H&M Group and Amazon.com.