Shein joins Chinese rival Temu in Dublin with regional office as e-commerce firms seek refuge from political scrutiny
- Shein announced a new regional headquarters in Ireland, known as a tax haven, covering Europe, the Middle East and Africa, as it expands amid tough competition
- Analysts say the move is in part to avoid geopolitical risks, after US scrutiny of Chinese apps recently ensnared Shein and Pinduoduo sibling Temu
Shein, the online fast-fashion retailer founded in China, has set up a regional headquarters in Dublin to run its operations in Europe, the Middle East and Africa (EMEA), which comes just weeks after Chinese rival PDD Holdings made a similar move in the city known as a tax haven.
The creation of the office will bring with it 30 new jobs by the end of the year, Ireland’s Ministry of Enterprise, Trade, and Employment said in a statement on Thursday. The roles include positions in data analytics, security, finance and law.
Pinduoduo and Temu’s owner opens Dublin office amid scrutiny of Chinese apps
“A key strategy to achieving customer satisfaction is localisation,” Lin said in his LinkedIn post. “From the product, to supply chain, to marketing, Shein is deepening our localisation strategies in all our markets to better serve our consumers.”
Setting up regional offices helps cross-border e-commerce platforms like Shein and Temu better understand local culture and consumer preferences, said Zhang Zhoupin, an analyst at Chinese market consultancy 100ec.cn.
Shein and PDD represent a new breed of companies founded in China seeking to take advantage of Ireland’s low taxes while also distancing themselves from the country of their birth amid heightened geopolitical tensions that have invited political scrutiny of Chinese apps.
“[Their moves are] primarily for avoiding geopolitical risks,” said Li Chengdong, founder and chief analyst at Beijing-based e-commerce consultancy Dolphin.
In response to rumours that Pinduoduo was also affected, the Chinese e-commerce firm told local media that it was not moving to Ireland and that Dublin would only be used for the legal registration of PDD’s overseas business.
Google suspends Chinese shopping app Pinduoduo over alleged malware
Both Shein and PDD maintain extensive operations in China, where relationships with local manufacturers have enabled the cutthroat pricing on which they have built their brands.
Shein and PDD did not immediately respond to requests for comment on Saturday.