According to Reuters, informed sources claim that the global fast-fashion brand, Shein, and its partner, Reliance Retail, plan to rapidly expand their supplier base in India and to start international sales of Shein brand clothing manufactured in India over the next 6 to 12 months.
The cooperation agreement reached between the two sides in 2023 and the return of Shein to the Indian market through Reliance ‘ s retail channel further deepened with the aim of exporting Shein clothing produced in India to markets in the United States, Europe and the Middle East. Informed sources revealed that Shein had established a production base in India and that the first export products were expected to enter the global market by mid-2026.
Shein entered India in 2018 and left the Indian market in 2021 for tax and data privacy issues. In February, Shein returned to India through a branding authorization agreement with the Reliance subsector. Reliance launched the SheinIndia.in website, which sells Shein branded clothing produced by local factories. In contrast, Shein ‘ s other websites mainly sell goods from China.
It is known that the Reliance Group, which is controlled by the Asian leader Mukesh Ambani, has contracted 150 garment manufacturers and is in the process of negotiating with another 400. According to informed sources, the goal is to produce Shein brand clothing in 1,000 Indian factories within a year, both for the Indian market and for parts of Shein ‘ s global website.
Shein originally wanted to sell Indian-made clothing on her United States and British websites. Discussions have been ongoing for several months and the start-up time of 6 to 12 months may be adjusted to take into account the number of vendors. In her statement, Shein stated that Reliance had been authorized to use its brand in the domestic market of India and that “Reliance is responsible for the manufacture, supply chain, sale and operation of the Indian market”.
Shein plans to establish production plants in Gujarat and Tamil Nadu, India, with an initial investment of about $200 million, and is expected to create 5,000 jobs. The first export products will include women ‘ s clothing, child clothes and accessories, with the United States (40 per cent of Shein ‘ s global sales), Europe (30 per cent) and the Middle East (10 per cent). According to the source, Shein and Reliance had entered into agreements with 100 local suppliers and the first orders would be completed by 2025 and exports would be achieved by mid-2026. Reliance will provide logistics and warehousing support to ensure that products enter overseas markets in a 7-10-day logistics cycle.
Shein is a fast-fashion giant that earns over $30 billion a year through low prices and aggressive marketing strategies. According to the market intelligence company Sensor Tower, the Shein India application has been downloaded 2.7 million times at Apple and Google Applications, an average monthly increase of 120 per cent since its launch.
The previous four months had provided 12,000 models, only a fraction of the 600,000 commodities available on the Shein United States website. As at 9 June, the cheapest of the women ‘ s dress category was Rs 349 (approximately US$ 4), while the US web site ‘ s equivalent was $3.39.
The Indian partner Reliance, who operates the application, is negotiating with vendors to assess their ability to replicate Shein ‘ s global bestseller at a lower cost. According to both sources, Reliance was designed to follow Shein ‘ s on-demand production model, requiring the supplier to produce only 100 items per design at the beginning and then to increase production on the bestseller model.
The Shein Assistant to India, Reliance Group (Manish Aziz), praised the incredible size and speed of Shein. Reliance will invest in suppliers and help them grow, which in turn will help Shein ‘ s partnership with Reliance move globally.
