Shein, the global fast-fashion giant, is expanding its manufacturing base in India through a strategic partnership with Reliance Retail, with plans to export Indian-made apparel to international markets, including the U.S. and UK, within the next six to twelve months.
Originally founded in China and now headquartered in Singapore, Shein is accelerating its diversification strategy as global trade dynamics shift. The initiative gained momentum after the United States imposed tariffs on Chinese imports, prompting the company to reduce its reliance on Chinese suppliers and explore alternative sourcing hubs.
According to sources cited by Reuters, the Shein-Reliance collaboration aims to scale the number of Indian apparel suppliers from the current 150 to 1,000 within a year. Reliance, led by Mukesh Ambani, is already working with 150 manufacturers and negotiating with hundreds more to build a robust supply network for Shein-branded garments.
The move marks a significant shift in Shein’s operations. While the company traditionally ships low-cost fashion directly from 7,000 Chinese suppliers to customers in over 150 countries, the expansion in India will enable it to feature locally made products on its global platforms. Shein’s U.S. operations, its largest market, have been particularly affected by new tariffs on low-value shipments from China, many of which were previously exempt from duties.
Shein had entered the Indian market in 2018 but was banned in 2020 amid wider restrictions on Chinese-linked apps during border tensions. It re-entered India in February 2024 via a licensing deal with Reliance Industries, launching SheinIndia, which exclusively features domestically manufactured products, unlike its global sites.
In a public statement, Shein confirmed Reliance holds exclusive licensing rights for the Indian market and is responsible for manufacturing, supply chain, sales, and operations in the region. The plan to export these India-made clothes through Shein’s websites in the U.S. and U.K. marks a significant milestone in the brand’s localization and global integration strategy.
Shein currently earns over $30 billion in annual revenue, leveraging low prices and strong digital marketing. Although China remains its primary manufacturing hub, Shein has been expanding its production footprint to other countries, including Turkey and Brazil.
This partnership reflects a broader industry trend, as global retailers like Walmart also deepen their engagement in India to mitigate supply chain risks and navigate ongoing U.S.-China trade tensions.
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