Editor’s note:
After publication, SHEIN shared the official transcript of Xu Yangtian’s speech delivered at the Guangdong High-Quality Development Conference (Feb 24, 2026). We have updated the full text below to reflect the official version.
Sky Xu (Xu Yangtian), founder of online fast fashion giant SHEIN, made a rare public appearance yesterday, speaking at a conference organised by the provincial government of Guangdong, where most of SHEIN’s supply chain is based.
The speech, which was televised live, was probably the first such public appearance of Xu, which media outside China have dubbed as “elusive”.
Guangdong is where the vast majority of SHEIN’s supply chain remains anchored. The ecosystem of apparel workshops there operates very differently from what you typically see in East China, Vietnam or Bangladesh. After dozens of visits to the region over the past three years, we have only begun to fully grasp the system logic behind it.
Below is the full English translation of Xu’s speech – you can interpret the signals yourselves. A bit of context before that:
- SHEIN’s path toward IPO has been closely followed in recent months. Beyond the listing mechanics, this is a company that built enormous commercial scale while navigating increasingly complex U.S. – China dynamics. A public speech at a Guangdong high-quality development conference, at this point in time, is therefore a notable calculated signal in itself;
- In recent years, SHEIN, TikTok and several other Chinese-founded companies (such as Manus AI) relocated their corporate headquarters to Singapore. The move was widely seen as part of their broader internationalisation strategy amid geopolitical uncertainties. At the same time, SHEIN’s operational backbone – particularly its supply chain – remains deeply rooted in China. Recent developments around the TikTok deal in the U.S. also illustrate how corporate structuring alone does not fully decouple companies from the realities of where their core capabilities sit;
- Replicating that supply chain outside China has proven challenging. While small pockets of progress exist (such as in Turkey), no other region currently matches Guangdong in terms of ecosystem breadth, depth, agility and responsiveness for fast fashion. A recent Reuters article highlighted some of the practical difficulties SHEIN encountered when building out its supply chain in Brazil – a useful case study in how complex such replication efforts can be;
- Through Momentum Works immersions to China, we have visited and spoken with many players across the cross-border apparel supply chain. Within the ecosystem, SHEIN is generally regarded as disciplined in execution – including paying suppliers on time. The company has also invested in improving working conditions, including installing air-conditioning in warehouses and garment workshops. In Guangdong’s summer, where temperatures can reach 38°C with high humidity, this is not a trivial detail. These operational practices shape how the ecosystem functions on the ground;
- SHEIN and Temu are both case studies covered extensively in our MWX Executive Immersion in Singapore. They are often grouped together because of their global scale and aggressive expansion. But structurally and operationally, they are very different companies. Understanding their playbooks and decision logic is critical in figuring out how to engage with them – whether as customers, partners, regulators, or competitors.
Full English translation of Sky Xu’s Speech at Guangdong High-Quality Development Conference, 24 Feb 2026:
Speech at the Guangdong High-Quality Development Conference
(February 24, 2026)
Xu Yangtian
Digital-Intelligent Collaboration · Shared Ecosystem Prosperity
Respected Secretary Kunming, Governor Fanli, distinguished leaders, and fellow entrepreneurs:
Happy New Year to you all!
As the spring tide surges along the Pearl River and all things renew for a new journey, I stand here today as a representative of enterprises, filled with gratitude and inspiration. Every step of SHEIN’s growth has been nourished by this fertile land of Guangdong.
Since establishing our presence in Guangzhou in 2014, we have maintained rapid growth. Our platform’s export value has exceeded RMB 100 billion. Our sales categories now span apparel, footwear, beauty, and home products. Our business covers more than 160 countries and regions worldwide, and we have grown into a globally recognized fashion retailer.
On behalf of the SHEIN Group, I would like to extend our most sincere appreciation to all government leaders and partners who have supported us.
Today, I would like to share three reflections from SHEIN’s development journey.
First, Guangdong’s comprehensive industrial ecosystem and first-class business environment have enabled SHEIN’s rapid growth.
SHEIN’s connection with Guangdong began with a deep recognition of its industrial ecosystem. From apparel factories in Panyu, to logistics hubs in Baiyun, to the cross-border e-commerce ecosystem spread across the province, these together form the core support of our “small-batch, rapid-response” model.
From design draft to product delivery into customers’ hands, we are able to compress the cycle to 2–3 weeks. Behind this is the ultimate efficiency of Guangdong’s apparel supply chain and the highly efficient response of international logistics delivery.
Even more touching to us is Guangdong’s first-class business environment. SHEIN’s achievements today would not have been possible without the attentive care of the Guangdong Provincial Party Committee and Provincial Government, the guidance and support of the Guangzhou Municipal Party Committee and Municipal Government, and the precise assistance from the Provincial Department of Commerce, Municipal Bureau of Commerce, customs authorities, tax authorities and other relevant departments.
When we first arrived in Guangzhou, leaders at the provincial, municipal, and district levels took the initiative to visit us, helping coordinate supply chain resources and connect us with supportive policies. This considerate service – “non-interference when unnecessary, full support when needed” – allowed us to fully commit ourselves and strengthened our confidence in locating our supply chain headquarters in Guangzhou.
Today, SHEIN works with nearly 10,000 suppliers in Guangdong and has supported more than 600,000 jobs within the province. Guangdong has truly become the fertile ground for our development.
Second, the deep integration of manufacturing and services has shaped SHEIN’s global commercial footprint.
Leveraging the new business model of cross-border e-commerce, SHEIN uses digitalization as a link to seamlessly embed user demand insights, supply chain responsiveness, and global service networks into the entire manufacturing value chain, continuously exploring new pathways for the integrated development of manufacturing and services.
On the manufacturing side, demand has become the core engine driving production. Under the “small-batch, rapid-response” model, we use technology and digitalization to gain insight into global fashion trends and forecast industry directions, transforming fragmented market demand into frontline production instructions.
On the service side, we deeply integrate cross-border logistics and localized operations with manufacturing processes. Using real-time market sales trends, we guide factories to allocate production capacity on demand and dynamically adjust logistics delivery and task allocation across the full value chain. User needs and feedback can directly trigger replenishment orders or design optimization at factories, in turn driving manufacturing upgrades.
It is precisely this deep integration – where manufacturing is embedded in services and services drive manufacturing – that has enabled SHEIN to build a dual moat of “speed + precision,” growing into a leading enterprise in the global fashion industry.
Third, by fulfilling the social responsibility of a supply chain leading enterprise, SHEIN will fully support the high-quality global expansion of Guangdong’s manufacturing sector.
We have always regarded serving the high-quality development of Guangdong’s manufacturing industry as our core mission.
SHEIN’s digital tools have been opened to partners across the entire ecosystem, helping factories achieve information transparency and refined management.
We have established smart supply chain networks in Guangzhou, Foshan, Zhaoqing, Jiangmen and other cities, driving the development of related industries such as warehousing and logistics.
We have built an apparel manufacturing innovation centre, creating a shared training base integrating industry, education, and evaluation across Guangdong. In 2025, we conducted nearly 600 training sessions, covering 37,000 supplier participants, strengthening the talent foundation for high-quality industry development.
Looking ahead, SHEIN’s commitment as a leading enterprise will become even more resolute.
Since launching the high-quality industrial belt global expansion initiative, Guangdong has become a demonstration province for platform-enabled industrial belt exports. In 2024, all 21 prefecture-level cities in the province achieved full coverage of industrial belt participation on the platform.
Over the next three years, we will deeply participate in the “Cross-Border E-commerce + Industrial Belt” pilot initiatives within Guangdong Province, enabling more small and medium-sized factories to benefit from cross-border e-commerce dividends, and helping “Guangdong products go global” with steady and sustained progress.
We will continue investing in supply chain empowerment and talent development, further advancing the digital transformation of traditional manufacturing and delivering more interdisciplinary industrial talent to the Greater Bay Area.
We will continue to root ourselves in Guangdong and invest over RMB 10 billion to build SHEIN’s smart supply chain system, working together to create a world-class fashion industry cluster.
Distinguished leaders and colleagues,
Guangdong is SHEIN’s root and the starting point of our奋斗 journey. We firmly believe that amid Guangdong’s high-quality development wave, SHEIN will move forward together with this dynamic land and make “Guangdong Smart Manufacturing” a new benchmark in the global fashion industry.
Thank you, everyone.
