Reliance Retail, one of India’s leading retail companies, is poised to reap numerous benefits from its partnership with Shein, a popular Chinese fast fashion brand. The Wall Street Journal has reported that Shein is making a comeback in India, with the Indian government giving its approval for a collaboration with Reliance Retail.
Shein enjoyed significant popularity in India before it was banned in 2020 due to the tensions between India and China along the border. The brand was particularly favoured among both girls and boys in the country. However, with the recent green light from the government, Shein has the opportunity to regain its foothold in the Indian market.
The partnership between Shein and Reliance Retail holds great potential for the latter. Reliance Retail stands to benefit from Shein’s strong brand recognition, advanced technology, and well-established supply chain. By leveraging Shein’s brand value, Reliance Retail can attract a wider customer base and strengthen its position in the fast fashion market.
Furthermore, Shein’s sourcing practices are also expected to undergo changes. The company primarily sources its products from the United States, India, Brazil, and Australia, as per its website. However, with increased scrutiny over cotton sourcing in the United States, Shein is likely to turn to small businesses in India for fabric procurement. This shift would not only allow Shein to diversify its supply chain beyond China but also present an opportunity for Indian businesses to collaborate with a global fashion brand.
In conclusion, the partnership between Reliance Retail and Shein holds significant advantages for both parties. Reliance Retail stands to gain from Shein’s brand recognition, technological expertise, and diversified supply chain. Simultaneously, Shein can make a comeback in the Indian market and tap into Reliance Retail’s extensive network and customer base. Overall, this collaboration has the potential to reshape the fast fashion landscape in India.
