This photo shows the logo of Shein, a fast and fashionable e-commerce company in the cross-border.
Jade High | AFP | Getty Images
Fast Fashion Giant Shein will reportedly promote its manufacturing industry in India to strengthen its international supply chains and in the ongoing U.S.-China trade war.
Reliance, a Singapore playoff brand and Indian partner, created by China, will expand its supplier base in South Asian countries over the next six to 12 months and start selling Indian Shein clothing internationally within the next six to 12 months Report Monday, quote the source.
They added that the plan aims to increase Indian suppliers from 150 to 1,000 in a year.
Shein told CNBC that the partnership is limited to licensing its brand to be used only for reliance retail in India’s domestic consumption. Reliance did not immediately respond to a request for comment.
According to sources, discussions between companies are getting fresh before U.S. tariffs on China and the closure of the former’s “de Minimis” trade loophole.
despite this Closely watched IPO.
Shein’s production expansion in India is a wise move given the company’s faced trade headwinds. ”
“It does look like the use of India as a manufacturing base is a long-term plan, and the current tariff challenge may speed up that goal,” added Ed Sander, an analyst at Tech Buzz China.
India expansion
Shein was launched in India in 2018 but was banned in 2020 as part of the government’s lockdown on Chinese companies.
It returned to India in February as part of a licensing agreement with Reliance Industries, a conglomerate owned by Asia’s wealthiest man Mukesh Ambani. The partnership is one of many reliances on global clothing brands including the Brooks Brothers, Marks & Spencer and diesel.
According to the deal, the Shein branded clothing is produced domestically in India and is sold on the Sheinindia.in website. This is different from most other Shein websites, which list products made in China. Nevertheless, the company still has existing manufacturing industries in Brazil and Türkiye.
A Reliance Retail official said at the time that Shein would use India as a “source of supply for global operations”, according to Go to the BBC. They added that the deal will also help rely on “building a network” and train Indian apparel manufacturers, India’s broader program to promote its textile and apparel export industry.
“I doubt whether the option to export from elsewhere in India will be the main target right now,” Sand said. “With that being said, if dependencies are reduced, this may change in the future.”
This is because other companies are also increasing production in India as they try to avoid the most punishing tariffs on China. India’s tariffs are currently at 10%, while trade negotiations are still underway.
“It seems wise to diversify manufacturing bases to the rest of the world as the outcome of the U.S. trade negotiations remain unclear,” Streeter said in an emailed comment.
American tech giants apple About 25% of the country’s global iPhones have also been enhancing its production in India. Those plans Inspired a rebound From U.S. President Donald Trump, who threatened to impose a 25% tariff on such goods.
However, the timing is particularly interesting for Shein as it tries to overcome the troubled scrutiny of the IPO. According to reports, e-commerce behemoth has been recently Changed list From London to Hong Kong after failing to obtain approval from Chinese regulators.
Shein has long tried to avoid allegations of using forced labor to produce its low-cost goods – claiming it firmly denies. Still, some concerns about whether India will provide silver bullets have raised concerns.
“In this regard, India is not without risks. There are reports of labor breaches as forced and child labour on cotton farms provided to three Indian textile suppliers of 60 multinational clothing brands,” Streeter said.
“There may still be significant doubts about this move among responsible consumers and investors.’
A spokesman for the Indian government did not immediately respond to CNBC’s request for comment on the claim.
