Online retailer Shein appointed former SoftBank Group Corp. executive Marcelo Claure to lead the company’s Latin American operations. This signature hiring could help one of the world’s most valuable startups accomplish an international expansion. Claure was once a lieutenant to Masayoshi Son of SoftBank. According to a Tuesday statement, he will lead the region’s operations. In addition, SoftBank’s ex-chief operating officer will deliver the company a $100M personal investment.
Why is the new appointment irregular?
Claure has a history as a telecom executive, SoftBank COO, and tech financier, which makes his appointment quite bizarre. In 2022, the Bolivian billionaire left SoftBank, rented office space, and established an investment company in Miami. The hire may portray Shein’s aggressive expansion into new markets, which will build on its success in selling discounted apparel to Western customers. Claure stated that this is a unique chance for him to help the Latin American region along with Shein. He added that throughout the region, nations such as Mexico and Brazil are at a stage of development. Shein’s supply chain will back up the nearshoring and eventually help local supply chains thrive.
The Wall Street Journal was the first to document the new appointment of Claure and his investment intentions.
Since its start, Shein has grown quickly. With a unique mix of viral marketing content and swift fashion changes, it drew consumers from the United States to Europe. Its value is estimated to be $100B, according to the April 2022 funding round. This is more than Hennes & Mauritz AB (HMB) and the company that owns Zara value united. Sequoia China and Tiger Global (TIGERGL) are two of its investors.
How did Claure build his fortune and reputation?
Despite reduced expectations for future expansion, secondary trades in July showed that the firm was still about $70B. China accounts for just a tiny fraction of Shein’s sales. The company has a 40% market share in the fast-fashion business in the United States, according to estimates. In 2021, sales reached $16B, rising from $10B in 2020.
Before leaving the company last year, following a tumultuous break with his former mentor, Claure established a $2B riches as a deputy to Son. He was well-known for fronting Sprint Corp. and leading the charge to clean up one of SoftBank’s most spectacular investment misfortunes – WeWork. He was also one of SoftBank’s most successful leaders in Latin America. There, he quite flourishingly led the investment efforts. He’s starting his own investing company while waiting for the end of his non-compete passage.