After a year of signing the partnership, India’s Reliance Retail Ventures is prepared to launch the globally recognized Chinese fast-fashion label Shein in the coming weeks or the end of this month, according to news reports. This strategic partnership aims to offer the brand’s products online on Reliance Retail’s app followed by its offline stores. It is suspected that former Meta director Manish Chopra will be leading the brand’s operation in India. Shein is a well-acknowledged brand worldwide and was founded in 2008 by Chris Xu. The brand had to leave India when it was banned in the country in 2020 due to growing border tensions and a broader crackdown in the country on Chinese apps.
Shein Expected To Scale Up Sourcing From India
Reportedly, Shein is expected to loosen its dependency on China and leverage the supply chain in India, with all its data being hosted and controlled by Reliance Retail. Mukesh Ambani-owned Reliance Retail has a total of 15,196 stores in India across more than 7000 cities. This partnership is also expected to contribute to Shein’s global outreach by reinstating it in the world’s most populous country. The brand is set to return to the Indian market after its absence for four years in the country. Reliance is also making efforts to set up boutique stores in specific European cities and keep records and tracks of all Western fast fashion trends.
Mutually Beneficial Partnership
The partnership between Shein and Reliance Retail is said to be mutually beneficial. Shein will receive a license fee in terms of a share of profits from the Ambani-led company, and it will not be investing equity. All payments to the brand will come from profits generated in India. With all access acquired by Reliance Retail, Shein will not have access to or control over the data. India will be Shein’s supply source for its global operations, leading to a boost in its textile and garment exports from India. Shein will also provide Reliance Retail with suitable technology and expertise, for over 25000 MSMEs.
Shein’s Ban In 2020
The ban on Shein in 2020 was implemented under section 69A of the Information Technology Act, which allows the government to block any websites and services in the interest of national security. Soon after the ban was imposed, the company also shifted its home base from China to Singapore. A spokesman from the brand has clarified that Shein has a zero-tolerance policy towards forced labor and is committed to ensuring and respecting human rights. Further adding, the spokesman said Shein will ensure visibility across the entire supply chain while also ensuring that cotton is sourced from approved regions.