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Shein wants to sell its supply chain to brands. Here’s why that matters

The ultra-fast fashion giant is reportedly exploring supply chain as a service to diversify its business model beyond retail.
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Workers make clothes at a garment factory that supplies Shein in Guangzhou, China.Photo: Jade Gao/AFP via Getty Images

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Shein is planning to open up its supply chain to third-party brands, according to an internal letter from executive chairman Donald Tang referring to a new “supply chain as a service” initiative. The move, first reported by the Wall Street Journal last week, suggests the ultra-fast fashion company and marketplace provider is looking for growth beyond the low-margin business of selling inexpensive apparel — and could have widespread implications for the broader fashion industry.