Five years after its ban, Chinese fashion giant Shein has made a notable comeback in the Indian market. The company relaunched its app on Friday night through a strategic agreement with Indian conglomerate Reliance Retail. This move marks a significant shift in Shein's operations as it seeks to embed itself deeply within the Indian market while adhering to stringent regulatory conditions.
The relaunched Shein app has quickly gained traction, with over 10,000 downloads since its debut. Currently, the company is delivering fashionwear to consumers in Delhi, Mumbai, and Bengaluru. Plans are underway to expand services across India. The company's re-entry into India is facilitated by a long-term licensing deal with Reliance Retail, aimed at selling products manufactured and sourced locally.
Under this agreement, Shein will utilize India as a supply source for its global operations. The company will focus on promoting the export of textiles and garments from India and assisting Reliance Retail in developing a robust network, along with training Indian garment manufacturers. All customer and application data will be stored within India, ensuring compliance with local regulations.
India's Commerce Minister Piyush Goyal emphasized that Shein's return comes with strict conditions. Reliance Retail holds complete control over operations and data management, while Shein acts as a technological partner. Goyal clarified that the initial ban targeted the app itself rather than the sale of Shein-branded products, allowing for this unique partnership.
"Stealing and surreptitiously transmitting users' data in an unauthorised manner," was a concern raised by Indian officials regarding apps like Shein.
Shein has transformed from a relatively obscure brand among older demographics to one of the largest fast fashion retailers globally over the past decade. It offers affordable fashionwear, with prices starting as low as 199 rupees ($2.30; £1.90), catering to budget-conscious consumers.
This partnership also represents a strategic move for Reliance Retail, owned by Indian billionaire Mukesh Ambani. It diversifies the company's strategy beyond its flagship Ajio online retailer, known for featuring international brands. The collaboration with Shein is a rare exception to India's comprehensive ban on more than 200 Chinese apps over the last five years.