Introduction to Chris Xu and Shein
With a net worth of $9 billion, Chris Xu, also known as Xu Yangtian, is a controversial and enigmatic figure about whom little is known. In 2008, with no prior experience in the fashion industry, Xu founded Shein in Nanjing, China. His original idea was simple yet ambitious: to capitalize on the international demand for Chinese products.
From SheInside to Shein
The real leap came in 2012 when Yangtian and his inner circle, known as “the four founders,” decided to expand the business and relaunch the brand as Shein. Alongside Yangtian, this group includes Molly Miao (operations director), Ren Xiaoqing (global supply chain manager), and Gu Xiaoqing.
Shein’s Rapid Growth
By 2022, Shein had become the largest fashion company in the US market and the most downloaded shopping app in the United States, surpassing even Amazon. Among its investors are IDG Capital, Mubadala Investment, Tiger Global Management, and HongShan Capital.
In 2023, Shein partnered with Sparc Group (now Catalyst Brands), the owner of fashion brands like Forever 21, Aeropostale, and Brooks Brothers. Through this agreement, the Chinese retailer acquired a one-third stake in the group, while Sparc Group became a minority shareholder in Shein.
Marcelo Claure Joins Shein
The same year, Shein appointed Marcelo Claure, a current investor, as vice president of the group. Claure is a multimillionaire Bolivian-American entrepreneur with an impressive resume: he has invested hundreds of millions in Latin American startups; owns Club Bolívar, one of Bolivia’s most popular football teams; served as CEO of Sprint Corporation, and founded Brightstar Corporation.
Claure also serves as president of Shein in Latin America, as part of the company’s early plans to gain a stronger presence in the region. In this regard, the fast-fashion giant is seeking more warehouse space in Mexico as it expands its e-commerce operations there and announced a $150 million investment to start locally producing Shein’s clothing in Brazil. To achieve this, the company signed agreements with 200 factories across 12 Brazilian states.
Shein’s Financial Performance and Criticisms
In 2023, Shein was valued at $66 billion, with approximately $38 billion in revenue for 2024, according to Forbes.
However, the company faces criticism for its labor conditions and environmental impact due to fast fashion practices.
Key Questions and Answers
- Who is Chris Xu? Chris Xu, also known as Xu Yangtian, is a billionaire and the founder of Shein. He started the company with no prior experience in the fashion industry.
- What is Shein’s growth story? Shein, founded by Chris Xu in 2008, has rapidly grown to become the largest fashion company in the US market and one of the most downloaded shopping apps globally.
- Who are Shein’s investors? Some of Shein’s prominent investors include IDG Capital, Mubadala Investment, Tiger Global Management, and HongShan Capital.
- What is Shein’s partnership with Sparc Group? In 2023, Shein partnered with Sparc Group (now Catalyst Brands) to acquire a one-third stake in the group, with Sparc Group becoming a minority shareholder in Shein.
- Who is Marcelo Claure and what is his role at Shein? Marcelo Claure, a multimillionaire Bolivian-American entrepreneur, joined Shein as vice president in 2023 and serves as the company’s president in Latin America.
- What are Shein’s expansion plans? Shein aims to expand its presence in Latin America and has announced investments in Mexico and Brazil to increase local production.
- What are the criticisms faced by Shein? Despite its success, Shein faces criticism for labor conditions and environmental impact due to fast fashion practices.
