Reliance Partnering with Shein to Bring Fast Fashion to India

4 Jul 2024 , 12:45 PM

Reliance Retail Ventures plans to launch Chinese fast-fashion label Shein in the next weeks, a year after signing a strategic collaboration with the latter, according to news reports. According to reports, Reliance will offer Shein’s products both on its app and in offline stores owned and operated by Reliance Retail.

The move comes four years after India prohibited Shein from selling products on its own app as part of a bigger crackdown on Chinese applications in 2020, following escalating border issues between the two nations. According to two executives who talked to ET, Reliance Retail is expected to hire Manish Chopra, the former Meta (Facebook) director, to lead Shein’s operations in India.

The store is also establishing boutique studios in certain European cities to map Western fast fashion trends and deliver them to India right away, according to reports. The activities would be operated by a Reliance Retail-owned firm, and Shein will not make any stock investments, according to the officials. “Shein is expected to be paid a licence fee as a share of profit of the Indian company, and any payment to Shein will only be made out of profits of the Indian company,” according to one of them.

Shein has a global presence in over 150 countries and more than 250 million social media followers, according to its website. The retailer recorded more than $2 billion in earnings for 2023 and about $45 billion in gross merchandise value, and is awaiting regulatory approval from Beijing to list in either New York or London, according to The Financial Times in March.

According to the licence deal between Reliance and Shein, the latter will use India as a supply source for its global operations, as well as increase textile and garment exports from India, according to the executives quoted above who talked to ET.

However, the executive stated to ET that the app, as well as all essential and sensitive data, will be housed and stored in India. “Ownership and control of the platform will remain with Reliance Retail’s subsidiary, the platform will be hosted on infrastructure in India and all platform data will remain in India, which Shein will not have access to, or rights over,” according to the report.

According to a research released earlier this week by consulting firm Redseer Strategy Consultants, the Indian fast fashion market is expected to exceed $50 billion by FY31 as it continues to outperform other retail sectors.

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