The Circularity Fund investment program will be funded by SHEIN with an initial amount of EUR 200 million. These funds will be used for research on circularity in the fashion industry. The fund will finance start-ups and companies from Europe that are developing next-generation technologies and solutions for textile recycling and related areas, as well as more mature companies that produce textile materials from recycled or emerging new fibers.
SHEIN will be the main investor of the Circularity Fund, but will also invite companies, financial institutions and state funds to invest in the further development of the program. – SHEIN has both the responsibility and the ability to accelerate innovations that can impact the environmental footprint of the entire fashion industry. The Circularity Fund will support companies and entrepreneurs looking for innovative solutions in the field of circularity, with an emphasis on activities carried out in the EU and Great Britain – declares Donald Tang, Executive Chairman of SHEIN.
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Ago, Shein and AliExpress lose their privileges
The remaining €50 million will be allocated to European and UK designers to develop their brands' businesses on the SHEIN platform, as well as potential investment in research and development or the introduction of SHEIN pilot production plants in Europe. The company wants to provide designers with not only access to millions of customers, but also production, marketing and logistics.
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Stop EU subsidies for Chinese stores Temu and Shein
Textile recycling and new polyester
As part of its new evoluSHEIN sustainability strategy, the company is collaborating with Queen of Raw to source surplus or "dead stock" fabrics from other brands to produce new SHEIN garments. The company also wants to increase the popularity of cool transfer denim printing technology among SHEIN suppliers. This technology uses high-adhesion inks and uses much less water than traditional denim washing methods. From 2023, the company is also investing in partnerships with academic institutions researching how to achieve commercially scalable production of chemically recycled polyester fibers.
