Reliance Retail, in a strategic partnership, is set to reintroduce Chinese fashion giant Shein to India. The Indian government has approved the partnership, allowing for sourcing, manufacturing, and retail of Shein products. This move comes two years after Shein's app was banned in India amid tensions between the two countries.
The Revival of Shein in India
Shein's Ban and the Reliance Retail Partnership: In 2020, Shein, along with other Chinese apps, was banned in India due to geopolitical tensions. However, Reliance Retail has now secured approval from the government to bring back the popular fashion brand to the country. This partnership encompasses various aspects, including sourcing, manufacturing, and retailing of Shein products.
Diversifying the Supply Chain and Tapping into India's Market
Shein, known for its fast fashion offerings, primarily sources its products from the US, India, Brazil, and Australia. Facing scrutiny over cotton sourcing in the US, the brand aims to diversify its supply chain beyond China by utilizing small businesses in India. This move not only allows Shein to expand its global manufacturing operations but also enables it to tap into India's growing consumer market.
Expanding Presence: Online and Offline
Reports suggest that the partnership between Reliance Retail and Shein may result in both online & offline stores. The popular Ajio platform, owned by Reliance, is expected to play a significant role in Shein's offline presence. Additionally, there are plans for a production hub in India to cater to the Middle East market.
Shein's Global Reach and Technology
Founded in China in 2012, Shein quickly became a global fashion & lifestyle e-retailer, serving customers in over 150 countries. The brand's on-demand manufacturing technology connects suppliers to its supply chain, reducing inventory waste and enabling the delivery of affordable products worldwide. Shein has been expanding its global footprint through manufacturing in Turkey, warehouses in Poland, and a distribution center in the US.
Reliance Retail and Shein's Future Endeavors
Reliance Retail, a prominent player in India's economy with over 15,000 stores across the country, sees the partnership with Shein as an opportunity to strengthen its position in the fashion retail market. While further details & comments from Reliance Retail are currently unavailable, this strategic collaboration is expected to bring exciting opportunities for both companies.
Conclusion
The Reliance Retail - Shein partnership marks the revival of Shein in India, offering Indian consumers access to the popular Chinese fashion brand. With Reliance Retail's extensive presence in the country and Shein's global reach, this collaboration holds the potential for success in India's competitive fashion retail landscape.