To create new revenue streams as well as ease pressure on its retail business due to the US tariffs, Shein Group is opening its Chinese apparel manufacturing network to other fashion brands.
Known as Xcelerator, the company's new initiative allows brands to tap into Shein's supply chain- known for its ability to turn around new designs in as little as 5 to 7 days. This service is available to brands on the condition that they open a store on Shein's online marketplace.
Shein has been formally recruiting brands for the program over the past two months after nearly two years of preparation and testing. Currently, about 20 brands, including French fashion label Pimkie and Filipino designer Jian Lasala, are using the service, which is being promoted through a new website launched in August.
Beyond manufacturing, Xcelerator also offers a suite of services that smaller brands often can't access at low costs, including sample development, warehousing, sales, and order fulfillment.
According to a Shein spokesperson, the program is designed to help brands overcome value-chain challenges by offering direct-to-consumer services, on-demand production, and global sales access to scale their creativity worldwide.
By selling access to its supplier network, Shein is building a new growth pillar to counter the impact of recent US policy changes. The removal of tax exemptions for small parcels from China has created uneven sales trajectories for Shein's core business of selling low-cost apparel. While Shein's US sales have been stronger than those of rival PDD Holdings' Temu platform, the company is still grappling with a volatile trade environment.
Unlike open-access platforms like Alibaba and 1688.com, Shein's model links supplier access to participation on its marketplace. This strategy aims to both leverage its extensive manufacturing network and attract more fashion brands to its platform, which is an important step as it faces increased competition and ongoing hurdles with its planned initial public offering. Shein, which is now headquartered in Singapore, has confidentially submitted a draft prospectus for a listing in Hong Kong.
