Mukesh Ambani to Re-launch the Chinese fast fashion brand in India again but how it will be different from reliance digital.
Reliance Retail’s anticipated introduction of the Chinese fast fashion brand Shein is seen as a crucial strategic choice. Reliance Retail’s portfolio will not only be improved, but it will also get important insights into important areas of the business, such as supply chain management. This will be Shein’s second stint in India after it was outlawed in June 2020 when tensions between China and India on the Himalayan frontiers rose, along with 59 other Chinese apps.
The market for fast fashion in India, which includes both western and ethnic styles, is believed to be worth $10 billion, and most research reports predict that it will reach $50 billion within ten years. Shein is renowned for its strength in e-commerce, strong supply chain, and design prowess.
This has enabled the brand to take on some of its most formidable competitors and reduce turnaround times, according to J Suresh, Senior Advisor at BCG and former MD & CEO of Arvind Fashions.
Zara and H&M control the majority of the fast fashion market in India (which primarily sells western clothing), with a sizable portion falling into the ethnic category. Shein upended the fast fashion industry by cutting the turnaround time for the big players from approximately a month to just one week.
The brand should become less reliant on the Chinese market as a result of the agreement with Reliance Retail. The contest will now take place in India in the market for reasonably priced quick fashion, where Shein will compete against brands like Zudio, Max, and Myntra.
The qualities of Shein’s supply chain might be very beneficial to Reliance Retail, says Harminder Sahni, Founder & Managing Director, Wazir Advisors. It’s all about releasing new designs fast and at reasonable costs. The remainder of Reliance’s portfolio can readily benefit from such expertise, he claims. Shein offers items for as little as $3 and as much as $100 in terms of price. “Even their entry-level products are excellent.
The game is about technology and optimizing the supply chain in the process. Shein is a well-known mass brand in China with a huge dealer network.
Reliance Retail generated over Rs 3 lakh billion in revenue and Rs 23,000 crore in EBITDA for FY24. It added about 800 new stores during the fiscal year, bringing the total number of locations to 18,836. “With a back-to-back sourcing agreement, it could be a significant opportunity for Reliance Retail to dominate the fast fashion market,” adds Suresh.
