Chinese fashion brand set to return to India with Reliance Retail
According to a news report by the Wall Street Journal, Reliance Retail is set to reintroduce the popular Chinese fashion brand Shein in India through a strategic partnership. The move comes two years after Shein’s app was banned in the country amidst heightened tensions between India and China at the Galwan border.
More recently though Shein has been facing flak in the US amid allegations forced labour and internment of Uyghurs, a mainly Muslim ethnic minority in China. Shein has refuted these charges.
The Wall Street Journal report highlights that the Indian government has approved the partnership between Reliance Retail and Shein, which encompasses the country’s sourcing, manufacturing, and retailing of Shein products.
With Shein’s primary sources of products being the US, India, Brazil, and Australia, the brand is likely to diversify its supply chain beyond China and potentially source fabrics for its global and local manufacturing operations from small businesses in India. This move will help Shein tap into India’s growing consumer market and address concerns regarding cotton sourcing in the US.