Shein Launches in India in SHOCK MOVE with Reliance (Forget Myntra?)

Shein, a giant fast-fashion retailer, is re-entering India through Reliance stores and app in weeks. This follows a year-old partnership to compete with Myntra and Zudio. Reliance will manage the platform, source clothes from India, and keep all data secure.

CONTENTS: Shein Launches in India in SHOCK MOVE with Reliance

• Shein launches India via Reliance stores
• Shein vs. Myntra & Zudio in India
• Shein sources from India via Reliance
• Secure Shein India via Reliance

Reliance Retail Ventures, owned by Mukesh Ambani, is set to launch the Chinese fast-fashion brand Shein in the Indian market in the coming weeks. This follows a strategic partnership between the two companies established a year ago. Shein’s products will be available through Reliance Retail’s app and physical stores, according to several executives familiar with the developments.

Shein Launches in India: In the affordable fast-fashion sector, Shein, a global leader, will compete directly with Myntra and Tata Group-owned Zudio, according to the executives mentioned. These brands leverage scale and distribution to achieve higher margins while maintaining affordability.

As reported by Ratna Bhushan from ET, this move follows India’s 2020 ban on Shein’s app as part of a broader crackdown on Chinese apps amid heightened border tensions. Reliance Retail plans to appoint former Meta (Facebook) director Manish Chopra to oversee Shein’s operations in India, according to two executives directly involved.

To stay ahead of Western fast-fashion trends and rapidly introduce them to the Indian market, Reliance Retail is setting up boutique studios in selected European cities. These operations will be managed by a company fully owned by Reliance Retail, without equity investments from Shein. One executive noted that Shein will receive a license fee as a share of the Indian company’s profits, with payments to Shein only made from these profits.

Shein Launches in India: Shein, a global retailer active in over 150 countries with a massive social media following of more than 250 million, aims to reduce its reliance on China through its partnership with Reliance.

This collaboration will enable Shein to expand its sourcing from India, according to an executive familiar with the matter. Under the terms of the licensing agreement, Shein will use India as a supply source for its global operations and increase exports of textiles and garments from the country.

Shein will also provide technology and expertise to Reliance Retail to integrate a network of over 25,000 MSMEs, thereby creating a parallel global supply chain originating from India, as stated by one of the executives.

Shein Launches in India: According to an executive, 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 stay within the country, ensuring Shein will not have access to or rights over this data.

A report by Redseer Strategy Consultants recently projected that India’s fast fashion market will exceed $50 billion by FY31, outpacing other retail sectors in the country.

Shein, which reported over $2 billion in profits and a gross merchandise value of nearly $45 billion in 2023, is currently awaiting regulatory approval from Beijing to proceed with a listing in either New York or London, according to a March report by The Financial Times.