E-fashion, especially in the clothing segment, has experienced tremendous growth in India, driven by platforms like Myntra, Amazon, and offline stores like Zudio. Myntra and Amazon dominate the online retail space, offering a wide range of fashion options across various price points. Myntra, with its focus on premium and trendy brands, has solidified its position, while Amazon provides convenience and affordability.
Zudio, a prominent offline player, focuses on offering budget-friendly fashion that appeals to a wide demographic. The growing demand for affordable, fashionable clothing and the increase in online shopping contributes to the ecosystem’s expansion. Ajio, owned by Reliance, has also emerged as a strong competitor, blending trendy collections with unique designs, further diversifying the fashion market and enhancing the growth prospects of e-fashion in India.
Fast Fashion Market Potential in India
India’s fast fashion market is on the rise, with reports predicting it could cross $50 billion in sales by FY31. According to Redseer Strategy Consultants, fast fashion is expected to constitute 25-30% of the overall fashion retail market by that time. As Shein re-establishes itself in India, its vast inventory and competitive pricing will likely resonate with Indian consumers, contributing significantly to the rapid growth of the country’s fast-fashion industry.
Shein’s Return to India via Reliance Retail
After being banned by the Indian government in June 2020, Shein, the Chinese fast-fashion giant, is making its comeback to the Indian market. Reliance Retail has started a backend test launch of Shein’s casual women’s westernwear on its fashion and lifestyle platform Ajio. This move marks a significant shift as Shein, which was banned due to the India-China border conflict, aims to tap into India’s growing fast-fashion sector once again.
Gradual Rollout on Ajio
Reliance Retail is currently testing and cataloging Shein’s products on Ajio, focusing initially on casual westernwear for women. While the company has not defined a clear timeline for a full-scale launch, this test phase will help gauge customer response and optimize the platform for Shein’s offerings. If successful, Shein may expand its product range across other Reliance platforms in India, further intensifying competition in the affordable fashion market.
Competitive Landscape in India
Shein’s re-entry into India will put it in direct competition with domestic players like Zudio, the budget fashion chain owned by the Tata Group, and Myntra, which is owned by Flipkart. Both companies dominate the affordable fashion segment in India, offering stylish yet reasonably priced options. Shein’s vast catalog of trendy, low-cost apparel is expected to appeal to the same demographic, particularly India’s youth, who favor fast fashion for its affordability and variety.
Strategic Partnership with Reliance
In a strategic move, Reliance Retail Ventures Ltd entered into a partnership with Shein last year to sell its fast-fashion products in India. This partnership is pivotal in overcoming the barriers posed by the 2020 ban, as it allows Shein to re-enter the market through a local infrastructure and retail platform. Reliance’s vast retail ecosystem provides Shein with a ready platform to scale its presence in India.
Written By: Dipangshu Kundu
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