Mukesh Ambani Turns to Chinese Partner Shein in Battle for Fashion Supremacy Against Tata’s Zudio

Mukesh Ambani, Asia’s richest man, is facing tough competition in the fashion world from Tata Group’s retail arm, Trent Ltd. While Ambani has been investing heavily in his retail business, Trent’s fashion brand Zudio has been booming, with sales tripling since before the pandemic and net profits skyrocketing.

Trent’s Zudio, known for its trendy and affordable clothing, now has nearly 560 stores across 164 cities. This rapid expansion and high inventory turnover are helping Trent’s profits grow even with low margins.

Ambani’s Reliance Retail, despite its massive investments, is struggling to keep up. Reliance has invested over $2 billion in retail and raised $6 billion during the pandemic. However, its fashion sales have not been as strong, with recent growth driven more by electronics and groceries rather than fashion.

To boost his fashion segment, Ambani is bringing back Shein, the popular Chinese fashion brand that had to leave India in 2020 due to border tensions. Shein’s return, controlled by Reliance, could be a game-changer for Ambani. Shein’s upcoming IPO and its partnership with Reliance could help Ambani’s retail business catch up with Tata’s success.

Meanwhile, Trent’s fashion division is thriving, with its in-house brands seeing significant growth. Trent’s success is putting pressure on Ambani to deliver results quickly. He is reportedly preparing his daughter, Isha Ambani, to lead the retail business, and he needs to ensure it is a strong performer.

The competition between Ambani and Noel Tata, the half-brother of Ratan Tata, is heating up. Tata has successfully built Zudio into a major player, and his family’s stake in the retail empire is growing. As both conglomerates vie for the fashion market, consumers in India can look forward to more affordable and trendy options.