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Reliance Retail Launches App for Shein Under Licensing Agreement

CIO Insider Team | Monday, 3 February, 2025
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Nearly five years after its original ban, Reliance Retail has released a dedicated app for Shein's fashion wear in India under a licensing agreement.

The quick fashion industry in India is preparing for intense competition. Due to the tremendous success of Zudio, a brand owned by Tata-owned Trent, Reliance Retail Ventures Ltd. has partnered with Shein, a Chinese fashion conglomerate that has surpassed major fashion labels in worldwide supremacy.

Last year, Reliance reintroduced its fast fashion line to India by partnering with Shein. As India-China tensions escalated in June 2020, Shein was one of more than 50 Chinese applications that were banned.

Four and a half years after the brand's ban by the government, Reliance Retail had previously started a backend test launch of Shein on its fashion and lifestyle portal, Ajio.

Ambani is taking on Tata in the fast fashion market by utilizing businesses with ties to China. The retail division of the $165 billion Tata Group, Trent Ltd., has seen a 12-fold increase in net earnings and a threefold increase in sales compared to pre-pandemic levels.

Its in-house fast fashion brand, Zudio, has captured the attention of young consumers with stylish yet reasonably priced clothing. Zudio has grown from 80 stores four years ago to around 560 sites in 164 Indian cities.

Rapid inventory turnover in low-rent locations, which permits high profitability despite narrow margins, is the key to the brand's success.

Due to the tremendous success of Zudio, a brand owned by Tata-owned Trent, Reliance Retail Ventures Ltd. has partnered with Shein, a Chinese fashion conglomerate that has surpassed major fashion labels in worldwide supremacy.

Reliance's strategy, which previously included Superdry and Gap into its flagship Ajio platform, has changed with this most recent transaction. Myntra and other clothes shops would now face competition from Shein's standalone app.

Isha Ambani of Reliance Retail has been instrumental in Shein's return to India by making sure that business practices adhere to regional laws. Reliance will maintain complete ownership and control over operations, including data governance, while Shein will only serve as a technology supplier under the terms of the arrangement.

Piyush Goyal, the minister of commerce, promised that all platform data will be kept in India and that Shein would not have access to it. Additionally, the agreement requires security audits to be conducted by government-approved cyber specialists.



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