Shein Considers India as Global Manufacturing Hub to Offset China Tariffs
Shein is exploring ways to navigate the increasing tariffs on products from China. In partnership with Reliance Retail, the online fashion giant is reportedly considering establishing India as its international manufacturing hub within the next year.
Although founded in China, Shein is now headquartered in Singapore and remains one of the companies most impacted by the recent escalation of U.S. tariffs.
As part of its strategy, Shein aims to expand its supplier network in India from the current 150 to approximately 1,000 within a year. The company plans to begin exporting apparel and other goods manufactured in India to markets around the world.
Leveraging its partnership with Reliance Retail, Shein is accelerating efforts to scale up production in India. The company has a licensing agreement with Reliance Retail to sell its brands in the Indian market. Shein initially entered India in 2018 but saw its app banned by the Indian government in 2020. Through the new agreement with Reliance, it is set to re-enter the market in early 2025.
Over the past year, Shein has faced several regulatory hurdles that have challenged its ultra-fast fashion business model. In addition to rising tariffs—which have inflated the price of its products in the U.S.—changes to de minimis import laws in both the U.S. and Europe have added further complications.
Despite these challenges, Shein reported $1 billion in profit for the 2024 financial year, marking a 40% decline from 2023. However, the company’s sales increased by 19%, reaching $38 billion.