Mukesh Ambani eyes fast fashion supremacy with Shein. Are Trent, Nykaa at risk?
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By offering dresses starting as low as Rs 199, billionaire Mukesh Ambani-led Reliance Retail has now sparked a fast fashion war in India by relaunching Shein and taking an online-first approach to challenge both Tata Group's Trent-owned Zudio and Nykaa Fashion. While India's overall fashion market grew just 6% in FY24, the fast fashion segment recorded a growth of 30-40% year-on-year and can be worth $50 billion by FY31, according to estimates by RedSeer Strategy Consultants. "With trendy fashion choices, attractive price points and partnership with RIL (help leverage RIL’s distribution network), we find Shein well-positioned to gain traction in the market...We see upside risks to RIL's retail revenue and EBITDA estimates on the back of the Shein launch and likely traction, helping re-accelerate retail growth," BofA Securities research analyst Sachin Salgaonkar said. Shein has a good brand recall in India and before ...