Shein Returns to India: After facing a four-year ban, Chinese fast-fashion brand Shein is returning to the Indian market through Reliance Retail. Shein has started testing and cataloging his collection on Mukesh Ambani-led Reliance Retail’s online platform, Ajio.
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Shein Returns to India
Reliance will extend this brand to its other platforms, further intensifying its competition with Tata Group’s Judio and Flipkart‘s Myntra in the affordable fast-fashion segment in the Indian market. In 2020, the government banned 50 Chinese apps, including Shein, amid rising tensions over the India-China border dispute.
Shein Will Not Have Access to Indian Data
However recently, Commerce and Industry Minister Piyush Goyal told the Lok Sabha that Shein’s operation will be on an indigenous retail platform of the country. Shein will not have access to the platform’s data. Shein is re-entering the Indian market at a time when it has seen slowing revenue growth.
Shein Returns to India: Shein’s Performance
Shein’s revenue growth for the first half of 2024 has declined to 23% from 40% last year. According to Redseer Strategy Consultants, the fast fashion segment in India grew by 40% last financial year, which is 5 times the 6% growth of the total retail segment. By 2031 this market will be worth Rs 4.5 lakh crore.
App-based e-commerce company Shein has a presence in more than 170 countries. There are 5.3 crore users. Its growth in America is increasing surprisingly. Shein’s share of US fast-fashion sales is expected to reach 50% by November 2022, up from 12% in January 2020. After shifting its headquarters from China to Singapore, Sheen made a profit of Rs 17 thousand crore in 2023. A total of products worth Rs 3.83 lakh crore were sold.
Shein Returns to India: Importance of Reliance-Shein Agreement for the Indian Market?
Chinese brand Shein will get access to 19 thousand stores of e-commerce platform Ajio and Reliance Retail. Reliance Industries is the world’s largest polyester fiber and yarn producer. The annual capacity is 25 lakh tonnes.
Sheen products contain high amounts of polyester. This will support its manufacturing. Reliance aims to double its retail business in 4 years. An affordable range of clothes will help it to increase its customer base.
Shein Returns to India: Effect on Indian Markets
This agreement will increase competition among fast-fashion companies. This may force established players to reduce their strategies and prices. Big e-commerce platforms like Shein Myntra as well as stores like Judio, Lifestyle, and Pantaloons may get a new challenge. Zara and H&M may also have to change their strategy.
Guess who's back in style? 👗✨ Shein returns to India after 4 years, teaming up with Reliance Retail! Are you ready to refresh your wardrobe or is this comeback not your vibe? 🛍️👇
— Ascendants (@AscendantsDotIn) December 24, 2024
Read full story here ⤵️https://t.co/aJZdRu3Aqn#SheinIsBack #FashionInIndia
Shein Returns to India: How Shein Changes Indian Markets
Shein’s strength is to identify fashion trends and launch them in the market in a short time. That’s why it is popular among Gen Z (12 to 27 years). The company brings 1.5 lakh new items every year. On average 10 thousand every month. Its dresses are 50% cheaper than other fast fashion brands.
Tata Trent’s Judio is the fastest growing in this segment in India. One-third of Trent’s total income comes from Jews. There are 559 stores in 48 cities across the country. Despite being smaller in size compared to Reliance Retail, its growth is fast. In the financial year 2023-24, Trent’s sales increased by 50% to Rs 12,375 crore and net profit increased 4 times to Rs 1,477 crore.
Jay Chavda He is the Founder and Writer of businesspulsecare.com. He is an I.T Engineer, Freelancer, Businessman. He posts Business, Stock/Share Market, Finance Related News and updates on the website. 🔗