Chinese fast-fashion eCommerce retailer Shein plans to add two distribution centers to the one it already has in the United States to get products to American shoppers three or four days quicker.
According to The Wall Street Journal, Shein opened its first U.S. distribution center in Indiana in April and is currently expanding its square footage by 50%. Another center is to be added in California in 2023, followed by a third in the Northeast at an unspecified date, reported Thursday, citing an interview with the president of Shein's U.S. operations, George Chiao. The facility will serve as Shein's main distribution hub in the Midwest and will reduce the need for international shipping and handling, according to the post.
On the same day, Shein announced that its growing facility in Indiana is expected to generate a local economic impact of USD 175 million per year. Shein expects to expand the facility and add 1,400 workers to the 1,000 it already employs there by the end of 2025, the company said in an announcement. The facility will serve as Shein’s main distribution hub in the Midwest and will reduce the need for international shipping and handling.
Shein was founded in China in 2008 and quickly tapped its manufacturing and international logistics muscle to turn around runway looks within weeks, priced for fashionable buyers on a budget. It is aimed squarely at Gen Z, luring young shoppers via Instagram and TikTok influencers and a barrage of discount codes for low-cost styles.