SHEIN Group Ltd. is offering other fashion brands access to its efficient apparel manufacturing network in China. The move lets brands leverage SHEIN’s factories — which can turnaround new designs in just 5-7 days — under the condition they open a store on SHEIN’s online marketplace.
Why Now?
- The initiative comes as SHEIN faces pressure on its core retail business, especially due to US tariffs hurting imports from China. The Economic Times
- SHEIN has also partnered with Reliance Retail in India to expand local manufacturing. The plan is to grow its Indian supplier base from about 150 factories to 1,000 by mid-2026, and begin selling India-made SHEIN-brand clothes not only in India but in global markets such as the US and UK within 6-12 months.
What Services Are Offered
Brands using SHEIN’s supply network can access:
- Sample development, warehousing, and order fulfillment.
- Small batch production: starting with low volumes (some designs in batches as small as ~100 units) and scaling up based on sales performance.
Implications & Risks
Opportunities:
- For smaller fashion brands, this means access to fast, efficient manufacturing and logistics they might not otherwise afford.
- Diversifying revenue: SHEIN reduces reliance solely on its own retail sales by monetizing its manufacturing strength.
- Geographic diversification: Increasing local manufacturing (like India) could help bypass tariffs and supply chain risks tied to China. CNBC
Risks / Challenges:
- Quality control, branding, and differentiation could be tricky for brands using the same factories.
- Regulatory and trade risks remain, especially if governments impose restrictions or tariffs.
- Operational strain: managing more brands, designs, small batches could increase complexity and overhead.
Conclusion
SHEIN’s new “manufacturing-as-a-service” push gives fashion brands access to one of the fastest production networks in the industry. By opening up its supply chain, offering small batch runs, and expanding manufacturing beyond China (e.g., India), SHEIN is not just protecting itself from external pressures like tariffs — it’s creating a new business arm. For emerging brands, this could be a game changer; for SHEIN, a smart move to future-proof its model.
