What: Shein and Reliance Retail plan to expand their Indian supplier network from 150 to 1,000 manufacturers within a year to produce clothes for global markets.

Why it is important: This development aligns with India's emergence as a key manufacturing hub, as highlighted in recent reports showing the country becoming the most attractive emerging market for retail expansion.

Shein and Reliance Retail are embarking on an ambitious expansion of their Indian manufacturing base, aiming to increase their supplier network from 150 to 1,000 factories within a year. The partnership, which began with the launch of SheinIndia.in in February 2025, focuses on producing Shein-branded clothes for both domestic and international markets, particularly targeting the US and UK. The collaboration involves implementing Shein's innovative on-demand manufacturing model, allowing suppliers to produce as few as 100 pieces per design before scaling successful items. Reliance executives have studied Shein's supply chain operations and digital marketing strategies in China to replicate their efficiency. The partnership also includes plans to source fabric, especially synthetic fibres, and import necessary machinery, with Reliance investing in supplier development to facilitate global expansion.

IADS Notes: Recent developments provide crucial context for this expansion. In February 2025, Shein returned to India through Reliance Retail, emphasising local manufacturing and data protection measures. This move gained significance as March 2025 reports showed mounting pressure on Chinese manufacturing, with Trump's elimination of the de minimis rule forcing companies to diversify their production bases. The timing aligns with India's growing attractiveness for retail expansion, as noted in September 2024 reports identifying India as the most promising emerging market. The partnership demonstrates how international retailers can navigate regulatory challenges while tapping into India's projected $50 billion fast-fashion market potential.

Shein and Reliance plan to sell India-made clothes abroad within a year