China’s Shein to Re-Enter India via Reliance Retail

China’s Shein to Re-Enter India via Reliance Retail
Photo: 26.05.2023 406

Chinese online fashion brand Shein will make a comeback in India almost after three years of ban.

Reliance Retail of Mukesh Ambani and Shein signed a partnership recently. As per the media reports Sheinwill operate through RIL's subsidiary to tap one of the fastest growing fashion markets globally.

In 2020, India banned TikTok and Shein along with some 50 apps after tensions with China escalated on the countries’ Himalayan borders. TikTok remains unavailable, though its parent firm ByteDance still operates the music streaming app called Resso in the country.

According to the WSJ report, Shein will be sourcing fabrics from small Indian businesses under the partnership. The company also has plans to build a production hub in India for export to the Middle East.

Shein may use Reliance Retail's sourcing capabilities, warehousing, and logistics infrastructure along with the retailer's huge portfolio of online and offline stores.

Shein's sales rose 60% in 2021 to $16 billion worldwide, Bloomberg reported.

The partnership has received approval from the Indian government, which is important fo Shein because the company has been increasingly criticized and attracted the attention of various regulatory agencies in other countries.

In mid-April, a U.S. Congress body singled out Shein and PDD-owned Temu in a report, accusing these platforms of exploiting trade tariff loopholes, violating intellectual property rights, alongside other issues.

In Brazil, retailers have repeatedly said they are concerned about unfair competition from large Asian companies such as AliExpress, Shein and Shopee.

The South African government announced an investigation into Shein in mid-March following complaints from the local textile union and industry association that the company may be exploiting tax loopholes to gain an unfair advantage in Africa’s most developed economy.

Sources: Mint, TechCrunch

digital markets  China  India 

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