New Delhi: One of the leading fashion brands worldwide, Shein, is preparing to make a comeback in the Indian market through a collaboration with Reliance Retail, according to industry sources. Shein had previously ceased operations in India in June 2020 due to the Indian government’s ban on Chinese apps following the clashes in Ladakh’s Galwan Valley. The partnership between Shein and Reliance Retail is expected to involve the establishment of offline stores as well as an online presence, potentially on Reliance Retail’s Ajio platform.
As part of the collaboration, Shein is likely to source fabrics for its global and local manufacturing operations from India, signifying a broader partnership with Reliance Retail that encompasses sourcing, manufacturing, and retailing, sources revealed. However, there has been no response from Reliance Retail regarding these details as of now.
It is worth noting that the Indian government has reportedly approved the partnership between Shein and Reliance Retail. This development coincides with efforts by US lawmakers, where Shein holds a significant presence, to urge the top market regulator to compel Shein to disclose its labor practices before the company’s planned initial public offering in the US.
Although Shein briefly sold its products on the Amazon e-commerce platform in India in 2021, the fast-fashion brand, operating in 165 countries worldwide, has been largely absent from the Indian market over the past two years. Prior to the Chinese app ban in 2020, Shein enjoyed popularity among Indian women for its affordable and trendy fashion wear, according to industry experts.
Established in China in 2008 by Chris Xu and now headquartered in Singapore, Shein is considered a non-Chinese entity by the Indian government, based on its approval for the partnership with Reliance Retail, insiders revealed.
The collaboration with Reliance Retail is expected to enable Shein to reach India’s youthful consumer base, while Reliance Retail stands to benefit from Shein’s global brand recognition, technological expertise, and fashion trends. In terms of sourcing operations, Shein may engage with small businesses to fulfill its fabric requirements, industry executives suggested.
Recent reports indicate that Shein raised approximately $2 billion in its latest funding round, valuing the company at $66 billion, a decrease of around one-third compared to the previous year, according to insiders cited by the Wall Street Journal.
