Shein, in collaboration with Reliance Retail, aims to significantly broaden Indian manufacturing network and start international sales of Shein-branded apparel produced in India within six to 12 months. The e-commerce company, which originated in China but is now based in Singapore, had initiated discussions with the Indian retail giant before the United States implemented tariffs on Chinese imports.
These tariffs subsequently heightened the urgency to diversify production sources. The partnership intends to increase the number of Indian suppliers to 1,000 from the current 150 over the next year, sources told Reuters.
Shein offers affordable clothing, including $5 dresses and $10 jeans, directly shipping from 7,000 Chinese suppliers to consumers across 150 countries. Their primary market remains the United States, where they are adapting to new tariffs on low-value e-commerce shipments from China, which previously entered duty-free.
Shein & Reliance Retail PlansInitially entering the Indian market in 2018, Shein faced a ban in 2020 during governmental actions against Chinese-affiliated companies amidst border conflicts. The company re-entered India in February through a licensing agreement with Reliance Industries unit, launching SheinIndia.in, which sells Shein-branded attire manufactured in domestic factories, differing from their other international websites that predominantly feature Chinese-made products.
Reliance, under the leadership of Mukesh Ambani, currently Asia's wealthiest individual, has engaged with 150 clothing manufacturers and is negotiating with an additional 400. The initiative aims to establish a network of 1,000 Indian manufacturing units within 12 months, producing Shein-branded apparel for both domestic consumption and international distribution through Shein's global online platforms.
According to one source, Shein's initial strategy involves featuring Indian-manufactured clothing on their US and British e-commerce platforms. Shein confirmed through an official statement that it has granted brand licensing rights to Reliance for the Indian market, stating that Reliance "is responsible for manufacturing, supply chain, sales and operations in the Indian market."
Shein, a prominent fast-fashion company, generates annual revenue exceeding $30 billion through competitive pricing and intensive marketing strategies. While China remains its primary manufacturing base, the company also produces goods in countries including Turkey and Brazil.
The company's growth in India reflects a broader trend, with international retailers like Walmart showing increased interest in the Indian market. This shift is particularly notable among businesses seeking alternative supply chains outside China due to ongoing US-China trade tensions.
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