Reliance Retail Ventures, a year after signing a strategic relationship with SHEIN, will finally launch the Chinese fast-fashion brand in the coming weeks, according to individuals informed of the events. The retailer headed by Mukesh Ambani will offer SHEIN’s merchandise on its app and in physical locations run by Reliance Retail, they said.
This development occurs four years after SHEIN was prohibited by India from selling goods on its own app in 2020 as part of a broader crackdown on Chinese apps in response to intensified border disputes between the two nations. Manish Chopra, a former director of Meta (Facebook), is likely to be appointed by Reliance Retail to oversee SHEIN’s activities in India, according to reports.
SHEIN’s re-entry into India on Reliance apps will position it against established players like Myntra and Tata Group-owned Zudio. The company reported more than US $ 2 billion in profits for 2023 and nearly US $ 45 billion in gross merchandise value.
SHEIN, a multinational retailer with a presence in more than 150 countries and a sizable social media following of over 250 million, is collaborating with Reliance in an effort to lessen its need on China. Based on information from a source familiar with the situation, the partnership intends to assist SHEIN in increasing its sourcing from India.
Reportedly, the store is also in the midst of establishing boutique studios in a few European locations in order to map out rapid fashion trends from the West and bring them straight to India. According to the executives, Reliance Retail will own all of the firm running the activities; SHEIN will not be investing equity in the deal.
“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,” one of them said
According to the licence agreement between Reliance and SHEIN, the latter would increase textile and apparel exports from India and use the country as a supply source for its international activities, according to the executives mentioned above. According to one of the executives mentioned above, SHEIN will give Reliance Retail the technology and know-how to integrate a network of more than 25,000 MSMEs and build a parallel global supply chain from India. The CEO did clarify, though, that the app will be housed and stored in India along with all pertinent and sensitive data.