According to a press release on Wednesday, Shein is spending 250 million euros, or around $270.5 million, in the EU and the UK over the course of the next five years, reported Fashion dive.
200 million euros of the investment would go toward setting up the Circularity Fund, which the company claimed will help European start-ups and companies engaged in innovative textile-to-textile recycling and related industries. According to Shein, a portion of this strategy entails forming offtake agreements and other business alliances with more established businesses that already have the ability to produce textiles from other textiles. According to the announcement, it will also be utilized to fund operational and financial improvements that will strengthen the fast fashion giant's circularity initiatives.
The remaining funds will be utilized to help small brands, designers, and craftspeople expand their enterprises through Shein's marketplace service, as part of "supporting the local entrepreneurial ecosystem" in the area. Additionally, the business will set aside funds to expand the number of EU and UK artists enrolled in the Shein X designer incubation program.