Fast fashion retailer Shein is reportedly planning to significantly increase its manufacturing operations in India. This strategic move is intended to strengthen its international supply chains, particularly in light of the ongoing trade disputes between the United States and China.
The company, which is based in Singapore but originated in China, is collaborating with Indian partner Reliance Retail. The aim is to broaden their supplier network within India and initiate international sales of Shein-branded apparel produced in the country within the next year. This expansion includes a target to increase the number of Indian suppliers from 150 to 1,000.
While Shein has stated that its partnership with Reliance Retail is limited to brand licensing for the Indian domestic market, sources indicate that discussions between the companies were underway in anticipation of potential new U.S. tariffs on China. Analysts suggest that this expansion could be a strategic advantage given the current trade climate and increased scrutiny of Shein's supply chains, especially considering its upcoming initial public offering.
Experts have noted that establishing a manufacturing base in India could prove to be a beneficial long-term strategy for Shein, especially considering the existing trade challenges.