Shein may return to India thanks to Reliance

19 May 2023 , 07:53 AM

More than two years after the Indian government banned Shein’s app, Reliance Retail is prepared to reintroduce the Chinese fashion powerhouse to India through a strategic relationship, according to news reports.

According to reports, the top retailer in the nation would offer Shein’s products through both its app and Reliance-owned and -operated offline outlets.

One of the biggest fashion retailers in the world, Shein, had been prohibited by the Centre from selling its goods in India through its own app more than two years prior as part of a bigger crackdown on Chinese apps in response to escalating border tensions.

‘Shein’s positioning of affordable and trendy clothing will complement Reliance’s portfolio, which also sells affordable fashion through its own store chain Reliance Trends,’ added the aforementioned report.

Before its app was prohibited by the home ministry in 2020, Shein had carved out a market in India for fresh looks and affordable pricing points.

The Wall Street Journal reported on Wednesday that Shein had raised $2 billion in its most recent investment round, but only at a valuation of $63 billion, down from last year’s $100 billion valuation. According to the article, the decreased valuation is a result of falling tech stock prices and greater pressure from US politicians over the company’s labour and environmental policies.

Shein ended the previous fiscal year with revenue of $23 billion, competing with quick fashion brands like H&M and Zara.

Bans also applied to other Chinese e-commerce applications like Ali Express.

Shein had to halt shipping orders earlier this year and refund client money due to state authorities’ crackdowns on Chinese shopping websites, which they said were paying fewer duties than they were obliged to.

Although Shein has some inventory in the Indian Amazon marketplace, the brand is still not widely recognized there.

Adding Shein will give Reliance’s fast-fashion portfolio more of a push through physical stores and online, said the news report. Reliance Brands partners with premium brands including Giorgio Armani, Gas, Hugo Boss, Armani Exchange, and Jimmy Choo as part of its flanking strategy, which straddles affordable and high-end apparel.

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