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In this article, we will delve into how fashion juggernaut Shein and India’s retail titan Reliance are scaling up domestic production to make India a global export hub for fast fashion.
Credits: Reuters
A Second Chance, Reimagined
After being banned in 2020 due to India-China border tensions, Shein has staged a calculated comeback to the Indian market—but with a twist. In February 2024, the Chinese-origin, Singapore-headquartered fashion retailer re-entered India through a strategic licensing agreement with Reliance Retail. The deal allows Reliance to use the Shein brand domestically, and it has launched operations via the SheinIndia.in website.
But beyond a simple market re-entry, the move signals a major strategic pivot: positioning India as a global manufacturing base for Shein.
From 150 to 1,000: The Supply Chain Surge
Reliance has already onboarded 150 garment manufacturers and is in talks with 400 more. The ultimate goal? Scale up to 1,000 Indian suppliers within a year. This is a dramatic shift from Shein’s traditional supply chain, which has long relied on over 7,000 manufacturers in China. The urgency to diversify sourcing has only grown since the U.S. imposed tariffs on Chinese imports, directly impacting Shein’s biggest market.
Now, India is being groomed not just as a local retail hub but as a full-fledged production engine. Within six to 12 months, Shein plans to start exporting India-made apparel to global markets—starting with the U.S. and the U.K.
On-Demand, Data-Driven Manufacturing
The model Reliance is deploying mirrors Shein’s secret sauce: on-demand, low-inventory production. Indian suppliers are being asked to produce as few as 100 pieces per design. If the products sell well, production scales up rapidly. This model reduces overstock, speeds up feedback loops, and ensures that only trending items are pushed at scale.
Executives from Reliance have even traveled to China to learn directly from Shein’s famed “data-driven” design pipeline and digital marketing playbook. “Shein’s scale and speed are truly incredible,” wrote Manish Aziz, AVP at Shein India, in a LinkedIn post.
Bridging Gaps in Fabric and Tech
Despite India’s robust textile industry, there are gaps—particularly in synthetic fabrics and specialized manufacturing equipment. To overcome this, Reliance is expected to assist suppliers with fabric sourcing, technology imports, and even capital investment. This hand-holding aims to make Indian factories competitive enough to replicate Shein’s best-selling global designs at a fraction of the cost.
The effort aligns with broader global fashion trends, as major players like Walmart and others are also exploring Indian sourcing to reduce dependence on China amid ongoing trade wars.
A Global Pipeline from India
Though Shein maintains that its licensing deal with Reliance is restricted to India, government officials suggest otherwise. In December, Commerce Minister Piyush Goyal confirmed in Parliament that the partnership aims to build a supplier base for both domestic and global sales. This puts India at the center of Shein’s reoriented global supply chain strategy.
Data already shows growing traction. The Shein India app has been downloaded 2.7 million times across platforms, registering 120% month-on-month growth since launch. Product listings have climbed to 12,000 designs, still a small fraction of the 600,000 available on Shein’s U.S. site—but growing fast.
Reliance’s Broader Fashion Play
This is just one piece of Reliance’s expansive fashion puzzle. The conglomerate already manages dozens of international brands like Brooks Brothers and Marks & Spencer, operates Ajio.com, and competes with the likes of Amazon, Flipkart, and Tata’s Zudio in the value fashion space. Adding Shein’s turbocharged fast-fashion engine to the mix boosts Reliance’s already formidable portfolio.
Credits: ET Retail
Conclusion: India, the New Fashion Workshop?
With low production costs, a vast textile ecosystem, and support from a retail powerhouse, India could soon emerge as a vital node in the global fast fashion web. For Shein, it’s a lifeline to circumvent geopolitical hurdles. For Reliance, it’s a chance to become a global manufacturing and retail force. For India, it could be a pivotal moment in becoming the world’s next fashion workshop.
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