Reliance Retail is reportedly in talks for a strategic partnership with Chinese fashion giant Shein to reintroduce the brand to India, more than two years after the Indian government banned its app. Executives familiar with the matter have revealed that Shein is expected to source products from India for other countries as well, as it faces scrutiny in the US.
The ban on Shein’s app was implemented in 2020 as part of a broader crackdown on Chinese apps following escalating border conflicts. However, the fashion retailer had established a strong presence in India with its affordable and trendy clothing offerings before the ban.
The partnership with Shein is seen as a complementary move by Reliance Retail, as Shein’s positioning aligns with Reliance’s portfolio of affordable fashion sold through its store chain, Reliance Trends.
According to a report by the Wall Street Journal, Shein recently raised $2 billion in its latest funding round, but its valuation decreased to two-thirds of its $100 billion valuation from the previous year. The decline in valuation can be attributed to decreasing tech share prices and increased pressure from US lawmakers concerning labor and environmental practices.
While Shein’s app remains blocked on the grounds of national security, the Ministry of Electronics and Information Technology clarified that the sale of Shein products on other platforms or websites is not covered under the ban. Therefore, Reliance’s partnership with Shein would likely involve selling Shein products through alternative channels.
Reliance Retail has been actively collaborating with fashion labels across different genres, and adding Shein to its portfolio would provide a further boost to its fast-fashion segment through physical stores and online channels. The move would enable Reliance to leverage the popularity of Shein’s affordable and trendy clothing offerings in the Indian market. As the negotiations progress, both Reliance Retail and Shein are poised to benefit from the potential partnership, leveraging their respective strengths to cater to the evolving fashion demands of Indian consumers.
