Reliance Industries has entered into a partnership with a major Chinese fashion manufacturer, sending shockwaves through the European fashion landscape and forcing fast-fashion giants like Zara and H&M to rethink their regional strategies. This development unfolds against the backdrop of escalating US-China trade tensions, which have disrupted global supply chains and prompted fashion brands to urgently adapt.
Reliance’s Rise in Global Fashion
Reliance, one of India’s largest conglomerates, has steadily been building its presence in the retail and fashion sector. With a growing portfolio of international collaborations and homegrown labels, Reliance has now positioned itself to take on global players head-on. The recent alliance with a leading Chinese fashion supplier—reportedly one of the key producers for brands like Shein and Temu—gives Reliance a significant edge in the ultra-fast fashion space.
This partnership is more than a business deal—it’s a strategic leap. It grants Reliance access to high-speed production capabilities, scalable design infrastructure, and the ability to offer trend-driven collections at competitive price points, a model that has made Chinese fashion manufacturers globally dominant.
Zara and H&M Rethink Strategy
For European fast fashion giants such as Zara and H&M, this development adds a new layer of urgency to their existing supply chain overhauls. Already grappling with the fallout of the US-China tariff war, these brands have been attempting to reduce dependency on Chinese manufacturing. Reliance’s entry, backed by Chinese production power, poses a new kind of competition—faster, more affordable, and increasingly appealing to the youth-driven market.
In response, H&M has been expanding its regional sourcing from countries closer to its European base, including Turkey, Morocco, and Egypt. Zara, known for its agile supply chain model, is also accelerating its shift toward regional manufacturing hubs. Both companies aim to shorten production cycles and reduce exposure to geopolitical risks.
US-China Trade War Adds Pressure
Compounding the competitive pressure is the ongoing US-China trade war. Recent policy changes, including the rollback of the “de minimis” rule—previously allowing low-cost goods from China to enter the US tariff-free—have significantly impacted fast-fashion retailers. Chinese suppliers now face higher tariffs and stricter customs scrutiny, making operations more costly and less predictable.
This shift has forced fashion brands to either absorb higher costs or pass them on to consumers. Many are looking for alternative production bases in Southeast Asia, South Asia, or North Africa to stay competitive. However, Reliance’s ability to maintain cost efficiency through its Chinese partner gives it a short-term advantage, especially in emerging markets and online retail platforms.
Reliance’s Competitive Edge
What sets Reliance apart is its ability to combine scale, speed, and strategic timing. The deal with the Chinese supplier not only boosts Reliance’s product pipeline but also supports its expansion plans in Europe and beyond. The company has already signaled interest in launching fast-fashion retail chains and strengthening e-commerce platforms under its Azorte and Reliance Trends banners.
Additionally, Reliance has the benefit of deep pockets and a vertically integrated retail network in India, which can be used as a testing ground for collections before scaling globally. Its partnership allows for streamlined production and distribution—a model that mirrors the success of Shein and other ultra-fast fashion players.
The Bigger Picture
Beyond market competition, the Reliance-Chinese manufacturer deal also reflects the shifting center of gravity in global fashion. Asian conglomerates are no longer content being backend suppliers—they are stepping into the spotlight with consumer-facing brands and retail ambitions of their own.
This shift is being watched closely in Europe, where traditional fashion giants now face a two-pronged challenge: navigating geopolitical turbulence and fending off well-funded, agile competitors like Reliance that are not burdened by legacy systems or slow-moving supply chains.
Reliance’s fashion offensive, powered by Chinese manufacturing prowess, marks a turning point in the global retail narrative. With US-China trade tensions reshaping global supply dynamics, and European players forced to localize and rethink their models, Reliance has seized the moment. Its strategic move not only disrupts established norms but signals the rise of a new kind of global fashion player—agile, ambitious, and deeply integrated across continents. The next chapters in this fashion saga will be closely watched, as the race for the future of fast fashion intensifies.