In a bold move that has the potential to reshape India’s fast fashion landscape, Reliance Retail is gearing up to relaunch Chinese fast-fashion giant – Yes ” SHEIN Returns to India “
This strategic partnership, set to roll out in the coming weeks, marks a significant comeback for Shein, which was banned in India in 2020 amid a broader crackdown on Chinese apps.
Reliance Retail’s Strategic SHEIN Returns to India strategy: A New Era for Fast Fashion
Reliance’s Role and Shein’s Comeback Strategy
Reliance Retail, part of Mukesh Ambani’s Reliance Industries, has been at the forefront of bringing international brands to India. The partnership with Shein is no exception, as it aims to leverage Shein’s global popularity and Reliance’s vast retail network. The plan includes selling Shein products on Reliance’s online platforms and in its physical stores.
The relaunch of Shein in India is more than just a business move; it’s a strategic play to tap into India’s burgeoning fast fashion market, which is projected to grow significantly in the coming years. Reliance Retail is expected to bring in former Meta (Facebook) director Manish Chopra to head Shein’s operations in India, a move that signals Reliance’s commitment to ensuring Shein’s successful re-entry into the Indian market.
Manufacturing Locally, Storing Data Domestically
A key aspect of Shein’s comeback strategy is its commitment to manufacturing in India and storing data domestically. This not only aligns with India’s “Make in India” initiative but also addresses concerns over data privacy and security. Shein’s plan to use India as a supply source for its global operations and to escalate exports of textile and garments from India is a win-win situation for both Shein and Reliance Retail.
Shein’s Profit-Sharing Model and Reliance’s Support
Under the partnership, Shein will receive a licensing fee as a share of the profits from the Indian operations. This profit-sharing model is a testament to the mutual benefits both companies stand to gain from this collaboration. Reliance Retail will provide Shein with the necessary infrastructure and support to integrate a network of over 25,000 MSMEs (Micro, Small, and Medium Enterprises) to create a parallel global supply chain from India.
Why Shein Fashion was Banned in India
Shein was banned in India in 2020 due to violations of the country’s foreign direct investment (FDI) policies and concerns over data privacy and security.
The Indian government had also received complaints about Shein’s business practices, including allegations of counterfeiting and intellectual property violations. Additionally, Shein’s Chinese origins and ties to the Chinese government had raised concerns about the potential for data sharing and surveillance, leading to a crackdown on the company’s operations in India.
Competing with Local Fashion Brands
Shein’s comeback in India is not without its challenges. The fast fashion market in India has seen significant growth since Shein’s departure in 2020, with local brands like Myntra and Nykaa Fashion gaining a strong foothold. However, with Reliance Retail’s backing and Shein’s expertise in fast fashion, the Chinese brand is poised to recapture the interest of the Indian youth and compete effectively in the market.
Conclusion
The relaunch of Shein in India by Reliance Retail is a strategic move that could redefine the country’s fast fashion landscape. With Shein’s global popularity, Reliance Retail’s vast network, and a focus on local manufacturing and data storage, the partnership is well-positioned to make a significant impact. As the Indian fast fashion market continues to grow, the Reliance-Shein partnership could play a crucial role in shaping its future.
