After a five-year break, Chinese fast-fashion company Shein is making a comeback on the Indian market. Shein reportedly got permission to return to India after signing a contract with Reliance Retail. The BBC reports The brand started cataloging and testing their inventory on Reliance Retail’s web portal recently, Ajio.
Recent claims state that the company, using Reliance’s platform, has obtained a long-term license to sell goods manufactured and supplied in India. Still, there is no official notification about this agreement yet.
Commerce and Industry Minister Piyush Goyal told the Lok Sabha in December of last year that Shein’s activities would take place on an indigenous retail platform inside the nation, therefore guaranteeing Shein’s lack of access to the platform’s data.
In 2020, India banned several Chinese apps, including Shein and TikHub, and blacklisted hundreds of other Chinese apps.
Currently, only Delhi, Mumbai, and Bengaluru offer service.
Launched on Saturday in India, this software has already attracted almost 10,000 downloads. It presents stylish items, beginning at a low price of Rs 199. The information on the app suggests that it is presently available in Bengaluru, Mumbai, and Delhi. Still, the app intends to soon extend its offerings to additional towns all throughout the nation.
With 53 million users and operations spread across more than 170 countries, e-commerce behemoth Shein has developed rather remarkably in the US. Shein had jumped from just 12% in January 2020 to a shocking 50% of the US fast-fashion market share by November 2022.
Shein stated a profit of 17 thousand crores in 2023 after leaving China for Singapore. The overall sales of the company came to an astounding Rs 3.83 lakh crore.
What does the Reliance-Shein merger mean?
Chinese firm Shein is about to have access to Reliance Retail’s 19,000 shops and Ajio‘s e-commerce platform. Reliance Industries, the largest polyester fiber manufacturer worldwide, has a yearly manufacturing capacity of 25 lakh tonnes, and Shein’s products are known for incorporating a significant amount of polyester. Therefore, this collaboration will significantly enhance the brand’s manufacturing capacity.
Reliance expects to treble its retail sales in four years. The company intends to greatly increase its customer base by introducing reasonably priced apparel. Reliance’s retail segment’s 18% increase in income for the financial year 2024 brought it to Rs 3.06 lakh crore.
Among Gen Z, or young people between the ages of 12 and 27, Shein has grown to be rather popular. Every year the company releases an amazing 150,000 fresh products.
Why can Shein transform the market?
Among Gen G (12 to 27 years old), Shein has lately been a big favorite. Each year, the company introduces approximately 1.5 lakh new products, which equates to roughly 10,000 new items per month. For many, it’s reasonably priced, 50% lower than competing fast fashion companies, which makes a difference.
Tata Trent’s Zudio is driving expansion in the quick fashion sector in India right now. Actually, Zudio alone generates one-third of Trent’s whole income. With 559 outlets spread over 48 cities around the nation, Zudio is fast-growing.