Global online fashion retailer Shein and India’s Reliance Retail are expanding their collaboration to significantly increase the production of Shein-branded apparel in India for international markets. This strategic move aims to leverage India’s manufacturing capabilities, with plans to list “Made in India” clothing on Shein’s international websites, including those in the US and UK, within the next 6 to 12 months.
The Singapore-headquartered e-commerce giant, which originated in China, had reportedly begun discussions with the Indian retail powerhouse even before the United States imposed tariffs on imports from China. These tariffs have since intensified the urgency for companies to diversify their manufacturing bases beyond China. Sources indicate that this partnership intends to expand Shein’s network of Indian suppliers from approximately 150 to 1,000 within the coming year.
Shein is renowned for its affordable fashion, offering items like dresses for around $5 and jeans for $10, primarily shipping directly from its extensive network of Chinese suppliers to customers in over 150 countries. The United States remains its largest market, where the company is adjusting to new tariffs on previously duty-free, low-value e-commerce shipments from China.
Expanding Presence and Production in India
Shein initially entered the Indian market in 2018 but faced a ban in 2020 amid government actions against Chinese-linked companies during border disputes. The company re-entered India in February 2023 through a licensing agreement with a unit of Reliance Industries. This agreement led to the launch of SheinIndia.in, which specifically sells Shein-branded apparel manufactured within India, a departure from its other international platforms that predominantly feature Chinese-made products.
Reliance, under the leadership of Mukesh Ambani, is actively engaging with India’s manufacturing sector. The company has already partnered with about 150 clothing manufacturers and is in discussions with an additional 400. The overarching goal is to establish a robust network of 1,000 Indian manufacturing units over the next 12 months. These units will produce Shein-branded garments for both the Indian domestic market and for export through Shein’s global online channels.
According to one source familiar with the plans, Shein’s initial strategy for international sales of Indian-made goods will involve showcasing these products on its e-commerce platforms in the US and UK. Shein has officially confirmed its brand licensing agreement with Reliance for the Indian market, stating that Reliance is responsible for “manufacturing, supply chain, sales and operations in the Indian market.”
Shein, a significant player in the fast-fashion industry, reportedly generates over $30 billion in annual revenue, driven by competitive pricing and aggressive marketing. While China remains its primary manufacturing hub, the company also has production operations in countries such as Turkey and Brazil.
Shein’s expanding presence and manufacturing initiatives in India align with a broader trend among international retailers, including companies like Walmart, showing increased interest in the Indian market. This shift is particularly pronounced as businesses seek to establish alternative supply chains outside of China due to ongoing trade tensions between the US and China.
