Chinese fast fashion giant Shein and its Indian partner Reliance Retail are likely to start overseas sales of India-made Shein-branded clothes within a year. With this move, the giants are eyeing to expand the Indian supplier base from the current 150 to 1,000 in 12 months to cater to both the Indian and global markets, Reuters reported, citing sources.
The fast fashion company was reportedly mulling the move, but US President Donald Trump’s tariff hikes acted as a catalyst for Shein to diversify sourcing. Shein is also considering to list India-produced clothes on its US and British websites, Reuters reported.
Reliance Industries’s retail arm has contracted with 150 garment makers across India so far and is reportedly holding talks to get 400 more on board.
The fast fashion major had forayed into the Indian market in 2018, but within just two years of operations, the company received a blow after the government banned the app following border tensions between India and China. After nearly five years of ban, the Chinese fast fashion giant re-entered India via a technology partnership with Mukesh Ambani-led Reliance Retail. Shein has licensed its brand for domestic use to Reliance Industries’ retail arm, which launched SheinIndia.in and sells domestically produced Shein-branded clothes. Under the deal, Reliance is “responsible for manufacturing, supply chain, sales and operations in the Indian market”.
Shein’s re-entry was facilitated by the commerce and industry ministry after the Chinese fast fashion giant agreed to have no access to, or rights over data. In a written reply in the Lok Sabha, Commerce Minister Piyush Goyal had said Reliance Retail signed a technology agreement with Roadget Business to develop an Indian e-commerce retail platform. The platform would help Indian suppliers and manufacturers to produce and sell products under Shein’s brand name.
“It is expected that this will help in the growth of the Indian textiles manufacturing sector, including local handicraft and create significant employment,” Piyush Goyal had said.
