Shein is focusing on brick-and-mortar stores and runway shows. Why the ultra-fast fashion giant is changing its approach.
A network of permanent stores in France, starting in Paris with BVH in the ultra-trendy Marais, then moving to Dijon, Reims, Grenoble, Angers, and Limoges in Galeries Lafayette department stores—the most famous in France. And then an in-person fashion show event, organized in Milan on October 16th, not to support emerging designers (as has happened in the past in Paris) but to present the Fall/Winter 2026 collection.
The initiatives announced by Shein make for interesting reading: the ultra-fast fashion giant appears to have initiated a (partial) shift in its business approach, moving beyond online sales and the on-demand production model that provided (used to provide) a monstrous offering (3,000 to 6,000 new products a day, but only a few hundred actual products for each reference). This is perhaps a response to a series of shifts in market conditions stemming from "external" factors that the company—founded in 2012 by Chris Xu, currently based in Singapore—is facing: changing purchasing habits among American and European customers; US tariffs that have weighed down Shein's (albeit very low) price lists; and new US customs policies, which in August 2025 abolished the de minimis exemption for packages ordered online with a value of less than $800. A rule that should be implemented in the European Union by 2028: it is also supported by the European Commission, which sent a recommendation on this issue to the co-legislators last February , and it is a strategic priority for companies in the textile-fashion sector who recently signed a joint appeal to the Community institutions in Paris.
Shein has experimented with brick-and-mortar sales several times in the past, but only with a limited horizon: it opened pop-up stores in the US, major European capitals, and even in Italy, from Verona to Naples via Milan. The company's brief history also includes an (unsuccessful) attempt to partner with the American teen fashion brand Forever 21 : in 2023, Shein entered into an agreement with its parent company Sparc Group to distribute Forever 21-branded products on its platform and, in exchange, use Forever 21's network of physical stores to strengthen its presence in the US (Shein's main market, along with Europe) and offer services such as in-store returns. The partnership did not work out, and in February 2025, Forever 21 filed for Chapter 11 bankruptcy for the second time in six years.
This is the first time, however, that the company has announced permanent openings (in partnership with Société des Grands Magasins, to which the parent company sold the Galeries Lafayette and BVH stores), which will likely lead Shein to adjust its business model, which the company has always described as "on demand." In a 2023 interview with Il Sole 24 Ore, manager Peter Pearnot-Day explained it this way: "The model is based on what we call 'on-demand manufacturing.' We create a design, produce up to 200 pieces worldwide. Then we put it online and see if and how many consumers buy the item. We produce it based on demand; otherwise, we put those few pieces on sale and don't re-sell them. This way, we cut down on waste by not having to guess what consumers will want." This type of production, according to Shein's management, would be crucial in limiting the environmental impact of a business that has always been (and is) highly controversial on this front and on social responsibility. This is a hot topic both in France, where a law against fast fashion was approved by the Senate in June, and in Italy, where Shein was fined €1 million by the Italian Competition Authority (AGCM) in August.
The presence of five stores in France, however, doesn't appear entirely compatible with this "on-demand" production model, given that the stores require stock. However, it would be in line with the company's intention to open more logistics facilities in Europe: the Stradella facility, opened in 2022 under the external management of Fiege Logistics, will close in Italy in December 2025, and one will open in Poland. This move, aimed at increasing EU presence, should also be seen as part of a reform of customs regulations: rumors have suggested a tax of two euros per package for those arriving from non-EU countries (most of which come from China, where Shein also produces), which would be reduced to 80 cents for a company with warehouses in Europe.
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