SHEIN Partners With Reliance Retail To Make A Return In India
According to sources, the cooperation has been approved by the government. This comes as US politicians, in a market where Shein has a significant presence, are pressing the country's markets regulator to require Shein to reveal its labor policies prior to an IPO.
Shein, one of the world’s top fashion companies, is preparing to re-enter India in a partnership with Reliance Retail after closing in June 2020 due to the post-Galwan ban on Chinese apps.
The collaboration will see Reliance Retail open physical stores as well as establish an online presence, presumably on the latter’s Ajio platform.
According to a rumor on Thursday, Chinese fast fashion juggernaut Shein would make a comeback in India alongside Reliance Retail. According to the Wall Street Journal, the Indian government has approved the collaboration between Shein and Mukesh Ambani’s Reliance Industries’ retail unit.
In June 2020, the Chinese giant’s platform was blocked in India as part of the government’s ban on hundreds of Chinese apps, as tensions between the two nations rose following incidents along the Ladakh-Ladakh border.
As part of a larger collaboration agreement with Reliance Retail, Shein is also anticipated to obtain fabrics for its global and local manufacturing operations from India. According to insiders, the collaboration will cover sourcing, manufacturing, and retailing.
Shein, founded in 2008 by Chris Xu, quickly became popular among Indian women and girls for its inexpensive, stylish fashion items.
The Ministry of Electronics and Information Technology decided in June 2020 to ban various Chinese-originating applications, citing privacy and data concerns. Apart from Shein, the ban also affected programs such as TikTok, UC Browser, ShareIt, Clash of Kings, and others.
According to Shein’s website, the key markets for Shein-branded items are the United States, India, Brazil, and Australia. Shein’s manufacturing plant is only allowed to use cotton from these countries and other designated places including Bangladesh, Tanzania, and Pakistan.
Since Shein is under examination in the United States for its cotton sourcing, the company is likely to get fabrics from small businesses in India, which might help the company diversify its supply beyond China, according to the article, which cited sources.
Shein was created in China, but its headquarters are now in Singapore, and the clearance from India means that the government now considers Shein to be a non-Chinese corporation, according to the article.
Shein could access India’s big young population through their cooperation with Reliance Retail. According to the WSJ, Reliance might gain from Shein’s brand recognition, technology, and supply chain.
Shein raised $2 billion in its most recent funding round, valuing the firm at $66 billion, a third less than a year ago, according to the Wall Street Journal, citing sources close to the company.