Reliance & Shein to Take India-Made Fashion Global Within a Year

According to numerous media reports, fashion retailer Shein and partner Reliance Retail intend to quickly grow their Indian supplier base and begin selling Shein-branded clothing abroad in the next six to twelve months.

As per stories published in the media, the Singapore-based e-commerce company, which was started in China, has been in talks with the Indian retailer about plans ever since the US put tariffs on Chinese goods, which made sourcing more difficult. The goal is to increase the number of Indian suppliers from 150 to 1,000 in a year.

Shein said it licensed its brand for use in India. Shein sells inexpensive clothing, like dresses for $5 and pants for $10, that are supplied straight from 7,000 Chinese vendors to consumers in about 150 countries. Its largest market is the United States, where it is acclimating to tariffs on low-value, duty-free Chinese e-commerce packages.

As part of government action against companies with ties to China amid border tensions with its northeast neighbour, the shop started in India in 2018, but its app was blocked in 2020. In February, it made a comeback under a licensing agreement with the Reliance Industries division, which established SheinIndia.in to sell clothing bearing the Shein name made in nearby factories. Shein's other websites, on the other hand, primarily feature Chinese products.

Reliance Building its Garment Manufacturing Network

As per reports, Reliance, which is owned by Asia's richest man, Mukesh Ambani, has agreements with 150 clothing manufacturers and is in talks with 400 more. Within a year, 1,000 Indian manufacturers are expected to produce Shein-branded clothing for the Indian market as well as to supply some of Shein's international websites.

Shein initially intends to list clothing made in India on its websites in the US and the UK. Discussions have been going on for months, and depending on the number of suppliers, the six- to 12-month launch date may change.

Reliance, which handles manufacturing, supply chain management, sales, and operations in the Indian market, has been granted a domestic brand licence by Shein, the company announced in a statement.

The goal of the Shein-Reliance alliance, according to Minister of Commerce and Industry Piyush Goyal, was to establish a network of Indian suppliers of Shein-branded clothing for sale "domestically and globally" in December.

Shein Gaining Popularity in India

Shein is a massive fast-fashion company that makes over $30 billion a year thanks to its aggressive marketing and inexpensive costs. Although some of its items are created in Turkey and Brazil, the majority come from China.

The company's expansion in India is indicative of the interest in the country from Walmart and other global fashion and retail companies, particularly those seeking suppliers outside of China as a result of the Sino-US trade conflict.

According to data from market research firm Sensor Tower, the Shein India app has been downloaded 2.7 million times on the Apple and Google Play stores, with an average monthly growth of 120%.

Only 12,000 designs have been offered in the first four months, which is a small portion of the 600,000 products on its US website. As of June 9, the cheapest item in the women's dresses category is 349 Indian rupees ($4), while the US website charges $3.39.