One of the world’s top fashion brands, Shein, which shut shop in June 2020 in India, after the government banned Chinese apps in the aftermath of the clashes at Galwan in Ladakh, is set to re-enter the country in a tie-up with Reliance Retail, industry sources have told FE.
The partnership, which could be announced shortly, will see Reliance Retail set up offline stores as well as mark its presence online, possibly on the latter’s Ajio platform.
Shein is also likely to source its fabrics for its global as well as local manufacturing operations from India, as part of a wider partnership arrangement with Reliance Retail. The partnership will include sourcing, manufacturing and retailing, informed sources said. A mail sent to Reliance Retail elicited no response till the time of going to press.
However, the Indian government has approved the partnership between Shein and Reliance Retail, informed sources said. This comes at a time when US lawmakers, a market where Shein has a big presence, are urging the nation’s top markets regulator to get Shein to disclose its labour practices ahead of the company’s initial public offering in the US.
While Shein products did retail on the Amazon e-commerce platform in India for a short duration in 2021, the fast-fashion brand, which has operations in 165 countries across the world has been largely absent in the country over the last two years.
Shein was a popular brand in India among women for its affordable and trendy fashion wear before the 2020 Chinese app ban, sector experts said.
Founded in 2008 by Chris Xu in China, the company is now based in Singapore and the approval from India implies that the government views Shein to be a non-Chinese entity, persons in the know said.
Through the partnership with Reliance Retail, Shein is likely to reach India’s young consumer base, sector experts said. On the other hand, Reliance Retail could benefit from Shein’s global brand recognition, technology and fashion trends. The sourcing operation could see Shein tap into small businesses for its fabric requirements, industry executives said.
Shein raised as much as $2 billion in its latest fundraising round that values the company at $66 billion, about a third less than a year earlier, the Wall Street Journal reported on Wednesday, citing people close to the company.
