Shein, TikTok, WeChat, PUBG, and Camscanner are among the most popular Chinese companies with millions of app downloads. However, these were among the 58 Chinese companies banned by the Indian government in 2020, citing national security reasons.
After a funding round in April 2022, Shein was valued at $100 billion. It reportedly generated $23 billion in sales last year. However, after their last funding round the company was valued at $64 billion owing to decline in sales. One of the main reasons for the decline in sales are its questionable sustainability practices and violation of labor laws. Shein has also faced lawsuits for copying designs from well-known brands such as Levi’s, Dr. Martens, H&M, Zara, and Ralph Lauren.
Shein is preparing to make a comeback in India in July 2023, three years after its ban. But here’s the catch - instead of relaunching their app, they have licensed their technology and trademarks to Reliance. Some Indian fast fashion brands targeting Gen-z such as Freakins, Off Duty, and Stumbl have also attracted the interest of venture capitalists.
Reliance Retail currently operates over 15,000 stores in 7,000 cities across India, which will significantly enhance Shein’s offline presence. The unlisted share price of Reliance Retail is currently ₹2550 per share.
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