Chinese online fashion brand Shein will make a comeback in India almost after three years of ban. Thanks to Reliance Retail. The retail arm of Mukesh Ambani and Shein signed a partnership recently. As per the media reports Shein has partnered with Reliance Retail and will operate through RIL's subsidiary to tap one of the fastest growing fash fashion markets globally.
Here are 5 updates about the Shein-Reliance Retail deal
Shein may use Reliance Retail's sourcing capabilities, warehousing, and logistics infrastructure along with the retailer's huge portfolio of online and offline stores.
Founded in China in 2008, Shein has swiftly claimed a top place in the global fast-fashion marketplace, offering customers low-priced collections that turn over at a steady clip.
Shein's sales rose 60% in 2021 to $16 billion worldwide, Bloomberg reported -- just behind Swedish high-street name H&M.
Shein was banned in India in June 2020 along with 59 apps after tension with China escalated on the Himalayan borders. However, Shein products were available in the online market through e-commerce platforms such as Amazon. The issues were also taken before the Delhi High Court.
Shein has also faced backlash in the US due to its Chinese connection. Earlier this month, a bipartisan group of two dozen US representatives demanded the Securities and Exchange Commission to halt the initial public offering of Shien until it verifies it does not use forced labour.
The rapid growth of the cheap fashion firm is attracting political scrutiny in several countries where leaders say the retailer is threatening homegrown businesses.
Now headquartered in Singapore, Shein is planning to IPO in the second half of this year.
Separately, Reliance Retail reported a 12.9% increase in its net profit to ₹2,415 crore. Besides, Reliance Retail also added 966 new stores in the March quarter, taking the total count to 18,040 and reporting 41.29%. year-on-year in the number of footfalls at its stores to 21.9 crore. German retailer METRO AG also completed ₹2,850 crore in the sale of its Indian cash & Carry business to Reliance Retail Ventures Ltd (RRVL) this month.
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