According to a Wall Street Journal article, Reliance Retail is prepared to reintroduce the brand to India through a strategic relationship, two years after the country’s government banned the Shein app from use. Due to increased tensions along the India-China border at Galwan, the Ministry of Electronics and IT banned Shein along with many other Chinese apps in 2020.
According to the Wall Street Journal article, the Indian government has given its approval to the cooperation between Reliance Retail and Shein, which deals with the sourcing, production, and retail of Shein goods.
Shein’s website states that the US, India, Brazil, and Australia are the main suppliers of its products. Shein is likely to purchase fabrics from small companies in India for its global and local manufacturing activities because it is under scrutiny for the US-based cotton it sources. By doing this, the fast fashion company will be able to expand beyond China and take advantage of the expanding consumer market in India.
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Role of Reliance for Shein in India
According to reports, the deal will provide not only an online presence but also actual stores, presumably on Reliance’s Ajio platform. Another possibility is the development of an Indian production base to supply the Middle East.
Reliance Retail, which runs more than 15,000 stores across India and sells a variety of goods, including clothing and food, is a significant role in the Indian economy.
Shein was established in Nanjing, China, in 2012, and moved its worldwide headquarters there in 2021. In order to connect suppliers to its supply chain and reduce inventory waste, the Chinese fashion and lifestyle e-retailer uses on-demand manufacturing technology. This technology also enables it to deliver a selection of affordable products to clients all over the world. More than 150 nations provide the product.
Shein is popular in its industry-leading on-demand manufacturing capabilities and its capacity to digitally integrate the ecosystem of suppliers to guarantee precise forecasting, effective raw material distribution, and efficient worldwide shipping. The company has been increasing its global reach through manufacturing in Turkey, warehouses in Poland, a distribution centre in the US, and other means.
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