Shein returns to India in tie-up with Rel Retail

Shein is set to re-enter India as soon as this month by partnering with one of the country's largest retail businesses, according to people familiar with the matter, in a bid to tap India's growing consumer market and diversify its China-centric supply chain.

- Keith Zhai

The Indian government has approved a partnership between the online fashion retailer and the retail unit of conglomerate Reliance Industries, the people said.

Reliance is a major player in India's economy and its unit Reliance Retail operates more than 15,000 stores across India that sell a range of products including groceries and clothes.

With this agreement, Shein is likely to source fabrics from small businesses in India, the people said. That could help Shein diversify its supply chain beyond China, they said, as it faces scrutiny in the U.S. over the sourcing of cotton.

Through the partnership, Shein could reach India's large, fashion-conscious young population, while Reliance could benefit from Shein's brand recognition, technology and supply chain, the people said. Shein also plans to build a production hub in India to export to the Middle East, the people said.

A Shein spokesperson confirmed the company's partnership with Reliance Retail, without giving further details. Reliance Retail didn't respond to a request for comment.

The Indian government's approval is notable for Shein, a China-founded, Singapore-based company that has been grappling with fallout from geopolitical tensions not just between the U.S. and China, but also between India and China.