Fashion giant Shein plans Mexico factory - sources

STORY: Online fast fashion giant Shein is exploring plans

to build a factory in Mexico, sources said

Shein, which sells $5 tops and $10 dresses, was founded

in China and manufactures most of its products there

The factory could shorten shipping times and cut

distribution costs for Shein customers in Latin America

and is part of the retailer's push

to diversify and localize production

The company will use funds from its recent $2 bln

capital raise to fund the expansion as it eyes a U.S. IPO

Despite a valuation cut to $66 bln in its latest funding round,

one source said Shein posts annual revenue growth of 40%

Shein declined to comment on the plan but

said it is committed to localization as it expands

The company has come under fire in markets including

India, Brazil and the U.S. for its supply-chain links to China