Shein, the Chinese online fashion brand, is set to reenter the Indian market after a three-year ban, thanks to a recent partnership with Reliance Retail. The retail arm of Mukesh Ambani’s conglomerate, Shein and Reliance Retail have joined forces to capitalize on India’s rapidly expanding fashion market, one of the fastest growing in the world, by operating under a subsidiary of Reliance Retail, according to media reports.
Here are recent developments regarding the Shein-Reliance Retail deal.
- Reliance Retail’s sourcing capabilities, warehousing, and logistics infrastructure, combined with their extensive portfolio of online and offline stores, could potentially be utilized by Shein.
- According to a Bloomberg report, Shein experienced a significant surge in sales, with a remarkable 60% increase in 2021, reaching a worldwide revenue of $16 billion. This places the company just slightly behind the renowned Swedish high-street brand, H&M.
- Shein has rapidly emerged as a prominent contender in the international fast-fashion industry. It caters to customers with budget-friendly collections that are frequently updated to keep pace with the evolving fashion trends.
- “Shein, a company with Chinese ties, has recently encountered criticism in the United States. In a noteworthy development, a bipartisan coalition comprising of twenty-four US representatives has called upon the Securities and Exchange Commission to suspend Shein’s initial public offering until the company can provide assurance that it does not engage in forced labor practices.”
- The government, citing concerns over sovereignty and integrity, banned Shein and 59 other apps, deeming them as potential threats.
The exponential expansion of the affordable fashion company has garnered attention from political authorities in multiple nations, who express concerns that the retailer poses a threat to local enterprises.
Shein, currently headquartered in Singapore, has announced its plans to conduct an initial public offering (IPO) in the second half of this year.
In other news, Reliance Retail has recorded a 12.9% increase in its net profit, amounting to ₹2,415 crore. Additionally, Reliance Retail has expanded its operations by opening 966 new stores during the March quarter, bringing the total count to 18,040. Moreover, the company has experienced a significant 41.29% year-on-year increase in footfall at its stores, with a total of 21.9 crore visitors. Furthermore, German retailer METRO AG has successfully completed the sale of its Indian cash & Carry business to Reliance Retail Ventures Ltd (RRVL), generating ₹2,850 crore in revenue for the deal.