Fashion retailer Shein, in partnership with Reliance Retail (Reliance Retail is owned by Reliance Industries Limited), is set to dramatically grow its presence in India by ramping up local manufacturing and initiating international exports, as per news reports. This strategic move is aimed at capitalising on global demand while reducing dependency on Chinese suppliers.
Shein and Reliance Retail are working towards increasing their Indian supplier base from the current 150 to 1,000 within a year. This plan aligns with the partnership’s goal to begin exporting Shein-branded clothing manufactured in India to international markets such as the U.S. and the UK. The expansion is driven by the need to diversify production sources amid global trade tensions, particularly those involving China.
After being banned in 2020 due to geopolitical tensions, Shein re-entered the Indian market in February under a licensing agreement with Reliance Industries. The new arrangement allows Reliance to handle manufacturing, supply chain, and operations within India through the dedicated SheinIndia.in platform. Unlike its global platforms, the Indian version features locally produced garments.
Initial plans include listing Indian-manufactured clothes on Shein’s U.S. and UK websites. The aim is to cater not only to domestic demand but also to serve global markets, depending on supplier readiness. The scaling up of supplier capacity and integration into Shein’s global network is expected to take between six to twelve months.
Shein operates globally with over 7,000 suppliers in China and earns annual revenues exceeding $30 billion. With rising tariffs on Chinese imports, especially in the U.S., the company is actively seeking to source products from alternative markets like India, Turkey, and Brazil. The partnership with Reliance represents a strategic pivot in Shein’s sourcing strategy.
Since its relaunch, the Shein India app has recorded 2.7 million downloads with a growth rate of 120% month-on-month. The platform has offered around 120,000 designs in its initial months, a small fraction compared to the 600,000 products listed on Shein’s U.S. site. Price points are also competitive, with dresses starting at ₹349 ($4), mirroring Shein’s low-cost positioning globally.
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Reliance plans to replicate Shein’s on-demand manufacturing strategy by initially producing small batches of 10 pieces per design. This method helps identify high-performing styles before mass production. Executives from Reliance have visited China to understand Shein’s design process, supply chain logistics, and data-driven manufacturing techniques.
To support the manufacturing scale-up, Reliance is planning to help suppliers source synthetic fibre fabrics, where India currently lacks capabilities. Additionally, the company will assist with machinery imports and invest in building supplier capacity, thereby supporting the long-term growth of the Shein-Reliance venture.
Shein’s strategic partnership with Reliance Retail signals a major shift in global fashion sourcing. By expanding local manufacturing and adopting innovative production techniques, the duo is not only targeting the Indian market but also planning to establish India as a global export hub for affordable fashion.
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Published on: Jun 9, 2025, 2:55 PM IST
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