Shein Clothing to Open a Massive Distribution Center in the Inland Empire

By: Sharjeel Sohaib

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Sep 30, 2022

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Shein Clothing to Open a Massive Distribution Center in the Inland Empire

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The fast fashion company Shein is establishing a 1.8 million square foot distribution center in Cherry Valley, an Inland Empire city, in 2023. Establishing the center here may bring many unique opportunities for workers and boost Inland Empire’s labor ratio. 

Key Takeaway:

  • The leading fast fashion brand Shein’s second distribution center is under construction in Cherry Valley, Riverside. 
  • This center, created by a partnership between Shopoff Realty Investments and Artemis Real Estate Partners, has two buildings: an industrial building with 811K S.F. and a 1M S.F. warehouse. 

We Covered this in our Weekly Wire Roundup

After Indiana, Shein Is Expanding Its Footprint in the Southern California Inland Empire

To expand in the United States, one of the company’s core markets, Shein, a Chinese fast fashion clothes brand renowned for its low prices and online business approach, plans to construct two other sizable warehouses besides the one in Indiana. 

The 1.8 million square foot second distribution facility for Shein will open in the Inland Empire during the first quarter of 2023. It will have a third distribution hub in the Northeast. By 2025, Shein’s distribution operations in Indiana and Inland Empire will provide jobs to 3,000 workers. It is an excellent opportunity to strengthen the economy of SoCal. 

As per Shein’s delivery policy, clients must wait 10 to 15 days to get their products. According to WSJ quoting Shein, it takes seven to eight days on average for Shein items to reach standard delivery. Opening new warehouses will reduce the time it takes for Shein to fill these orders. 

According to George Chiao, head of Shein’s U.S. operations, Shein will hire hundreds of employees nationwide, reducing the unemployment rate globally. 

Shein: The Present and Future of Fast Fashion

According to the online analytics engine Similarweb, Shein is one of the most talked-about companies on TikTok and YouTube and the most popular fashion and clothing website globally. 

In 2020, the company earned approximately $10 billion, marking the ninth year its revenue increased by over 100%.

China’s Shein Beating ASOS, H&M, and Zara at Fast Fashion.

Fast Fashion Brand Shein Criticized for its Environmental Impact

Despite being one of the best-renowned fast fashion brands, Shein often became the target of criticism. 

A 2019 World Bank analysis shows that the quantity of new clothes manufactured has quadrupled compared to the 50 billion made in 2000. Fast fashion is a wasteful enterprise that exacerbates the environmental effect of the fashion sector. Although Shein is a great brand, another violation has surrounded it. Social activists claim that throwaway fashion is so wasteful that no one who cares about the environment can support it. 

Nongovernmental organizations also claim that low-paid workers make products sold by Shein under hazardous working conditions with extended hours.

Shein’s Joined Hands With “The Or Foundation”

Shein has established a new Extended Producer Responsibility (EPR) fund and plans to invest US$50 million over the next five years. 

As part of this, the company will collaborate with the Or Foundation, a nonprofit organization with offices in the U.S. and Ghana that supports upcycles and merchants of used apparel in Ghana’s Kantamanto Market. Over the following three years, Shein will provide the Or Foundation with $5 million in financing.

Most fast fashion companies are going to West Africa with sponsored initiatives to secure the region’s expanding consumer market rather than clean up their mess. Accountability does not look like that. 

Adam Whinston, the head of Shein, stood out because he was modest enough to inquire about the foundation and how it may help. It is not a commercial or sponsorship deal. With this Fund, Shein is deciding to put its faith in groups like Kantamanto. They addressed the fashion industry’s waste issue long before Shein was a brand.

Wrap Up!

Shein intends to build a 1.8 million square foot distribution facility in Southern California. The only building of its sort is opening in Cherry Valley, a community of 8,000 residents, resulting from a partnership between two businesses. 

Shein reportedly planned to raise $1 billion from investors at a $100 billion value. Shein is also charged with several violations even though it represents the fast fashion industry’s future.

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