Reliance Retail plans to reintroduce Chinese fashion giant Shein to the Indian market through a strategic partnership, more than two years after the Indian government banned the Shein app.
What Happened? An executive speaking to ET disclosed that Shein could likely source from India for its global operations, considering the scrutiny it’s facing in the U.S. The executive mentioned that Shein’s commitment to affordable, trendy clothing aligns well with Reliance’s portfolio, complementing its affordable fashion chain, Reliance Trends.
The Indian government had previously banned Shein from selling products in India via its app amid increased border tensions.
Known for its stylish offerings and reasonable prices, Shein had carved a unique market space in India before the home ministry’s ban in 2020.
The Wall Street Journal reported on Wednesday that Shein raised $2 billion (₹16,444.65 crore) in its latest funding round at a valuation significantly lower than last year’s $100 billion (₹8,22,232.86 crore). This drop in valuation stems from falling tech share prices and rising pressure from U.S. lawmakers concerning labor and environmental practices.
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Rivals take note: The Indian government blocked the Shein app due to “national security” concerns, but the Ministry of Electronics and Information Technology (MeitY) clarified that other platforms or websites can still sell Shein products.”
Adding Shein to its fashion labels will further bolster Reliance’s fast-fashion portfolio, both in physical stores and online, as per another executive privy to the talks. Apart from partnering with luxury labels like Giorgio Armani, Hugo Boss, Armani Exchange, and Jimmy Choo, Reliance has strategic alliances with local fashion brands, including designers Manish Malhotra, Abu Jani Sandeep Khosla, Satya Paul, Raghavendra Rathore, and Anamika Khanna.
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