“Shein Considers Setting Up a Factory in Mexico”

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Shein is a company that started its manufacturing in China and gradually we have begun to diversify production to be closer to the customer (…) right now we are evaluating if Mexico is a positive market for us to manufacture, not only for the local public but also for the United States.” He emphasized that they have not yet chosen a location, as it is part of the evaluation, but he considers it very feasible:

“We are in an evaluation process, so it would not be prudent to say when, how, and where, but if the question is whether we are going to have factories in Mexico I believe we will, it’s not a question of if we are going to do it but when we will do it.” Shein is one of the companies pointed out by business chambers for being fast fashion—having few sustainability standards and high labor exploitation—to which Marcelo Claure responded that these are false accusations, created by their competitors in traditional business, as they managed to change this business by designing thousands of products a day based on customer needs.

They do this by manufacturing minimal quantities and thus not having inventory, which allows them to have better quality products at low prices.

“These companies were dedicated to trying to guess what the consumer wants and we turn it around with the number of products we can make a day (…) the perspective that matters most to us is that of the customers,” he condemned. He stressed that they are always in contact with governments and provide information about what they do in this and other countries in the face of the changing paradigm of the fashion business in the world, but they do ask that all actions that are taken apply to everyone.

“Being a global company that operates in 150 countries, it is very important that Shein operates with the rules of different governments, we completely agree that the federal administration of the country sets clear rules of the game, which I believe it does and we adapt in tax terms and whatever the Mexican regulations may be.” “The only thing Shein asks is that the rules apply to everyone so that we can compete (…) we still do not have knowledge of major changes, we are in the process of understanding what the strategy of the Mexican government is towards digital platforms,” he affirmed.

Source: Milenio