Chinese Fashion Retailer Shein To Foray Into Indian Markets By Partnering With Reliance Retail

Reliance Retail is planning to bring Chinese fashion giant Shein to India through a strategic collaboration, according to officials familiar with the processes, more than two years after the latter's app was banned by the Indian government.

"Shein is likely to source from India for other countries as well, given the scrutiny it is facing in the United States," said one of the executives.

The Centre stopped Shein, one of the world's largest fashion retailers, from selling its products in India through its own app more than two years ago as part of a larger crackdown on Chinese apps in reaction to rising 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," the executive explained.

Before its app was prohibited by the home ministry in 2020, Shein had carved out a place in India for fresh trends at affordable prices.

According to a Wall Street Journal story on Wednesday, Shein has raised $2 billion in its latest investment round, albeit at only two-thirds of its $100 billion valuation from last year. According to the report, the decreased valuation is due to dropping tech share prices and greater pressure from US politicians about its employment and environmental practises.

According to a second executive familiar with the negotiations, Reliance has been cooperating with fashion companies in many genres, and adding Shein will give its fast-fashion portfolio more push through physical shops and online.