Ex-COO of SoftBank to Lead Shein's Expansion Into Latin America

Shein, an online retailer, has hired Marcelo Claure, a former SoftBank Group Corp. executive, to help run its Latin American business. This is a key hire that could help the company accelerate its global expansion. Shein is already one of the world's most valuable startups.

Claure will lead the region's operations, according to a statement Tuesday. The former SoftBank chief operating officer will also make a $100 million personal investment in the company. Claure is a former lieutenant to SoftBank founder Masayoshi Son and has a wealth of experience in the industry.

The appointment of Marcelo Claure as CEO of Shein is unusual given his track record as a telecom executive, SoftBank COO and tech financier. The Bolivian billionaire left SoftBank in 2022 and moved closer to his roots, leasing office space for an investment outfit in Miami. The hire may reflect Shein’s aggressive push into new territories, building on its success selling cut-price apparel to Western consumers.

Claure said that this is a unique opportunity for him to contribute to the region together with Shein. He added that in Latin America, countries like Mexico and Brazil are at a stage of development where nearshoring, with the help of Shein’s supply chain technology, can enable local supply chains to flourish.

The Wall Street Journal was the first to report on Claure’s appointment and investment.

Shein has grown rapidly since its inception, capturing consumers from the US to Europe with a distinct combination of viral marketing videos and speedy fashion updates. An April 2022 funding round pegged its valuation at $100 billion — more than Hennes & Mauritz AB and the firm behind Zara combined. Its backers include Sequoia China and Tiger Global.

Although concerns about slowing growth have dimmed its prospects, secondary trades in July indicated that the company is still worth about $70 billion. Virtually none of Shein’s sales are in China. In the US, it has amassed an estimated 40% share of the fast-fashion industry. Sales are estimated to have reached $16 billion in 2021, up from $10 billion in 2020.

Claure built a $2 billion fortune while working as a deputy to Son before leaving the firm last year. He was known for leading the effort to clean up one of SoftBank’s most spectacular missteps — its investment in WeWork — as well as spearheading Sprint Corp. He also led SoftBank’s investment efforts in Latin America, one of its more successful funds. While awaiting the end of his noncompete clause, he is establishing his own investment firm.