Chinese fast fashion giant Shein has officially re-entered the Indian market, five years after being banned by the Indian government. The relaunch has been facilitated through a strategic licensing agreement with Reliance Retail, one of India’s largest retail conglomerates. A spokesperson from Reliance Retail, who wished to remain anonymous, confirmed that the firm has secured a long-term licensing deal with Shein’s parent company. This arrangement allows Shein to operate in India under Reliance’s umbrella while ensuring that all products sold through the platform are manufactured and sourced domestically. While Reliance Retail has yet to make an official announcement, the partnership is already in effect.
India banned Shein and several other Chinese apps, including TikTok, in 2020, citing national security and data privacy concerns. The ban was also linked to geopolitical tensions following a border clash between Indian and Chinese forces in the Himalayas. Since then, India has prohibited over 200 Chinese apps for allegedly misusing user data.
Strict Data Compliance Measures
Shein’s return comes with stringent conditions set by the Indian government, particularly regarding data security. Commerce Minister Piyush Goyal stated in December that all customer and application data must be stored within India, with no access rights granted to Shein. This strict regulatory framework aims to address concerns that initially led to the app’s ban in 2020.
Shein Market Return and Expansion Plans
The Shein app was officially relaunched in India on Friday night and has already been downloaded more than 10,000 times. Currently, the company is delivering products only to major metropolitan areas such as Delhi, Mumbai, and Bengaluru. However, a notification on the app indicates that nationwide service expansion is planned soon.
Shein’s competitive pricing remains a key attraction, with fashion items available for as little as 199 rupees ($2.30; £1.90). Before its ban, Shein had built a strong customer base in India by offering trendy and affordable fashion choices. Its absence created a gap in the market, which was later filled by several local fast fashion brands.
Industry experts believe that this collaboration marks a significant step for Reliance Retail, owned by billionaire Mukesh Ambani. The company has been expanding its portfolio of international brands, primarily through its online retail arm, Ajio. By bringing Shein back under its control, Reliance is diversifying its fast fashion offerings and strengthening its foothold in the segment.
Apart from catering to Indian consumers, Shein India is expected to serve as a manufacturing and supply hub for Shein’s global operations. According to a Reliance Retail official, the initiative will help build a robust textile and garment export network in India. Shein will assist in training Indian manufacturers, further boosting the country’s textile industry.
Rare Exception in India’s Crackdown on Chinese Apps
Shein’s comeback under the Reliance partnership is a rare exception in India’s stringent stance on Chinese apps. While several apps like TikTok and PUBG were banned, PUBG later returned under the rebranded name Battlegrounds Mobile India (BGMI) through Krafton India.
Despite Shein’s relaunch, the Indian government has reiterated that the ban was imposed on the app itself, not on the sale of Shein-branded products. With Reliance Retail at the helm, Shein is poised to reclaim its space in the Indian fast fashion market while ensuring compliance with local regulations.
Shein’s relaunch signifies a new chapter in India’s fast fashion landscape, leveraging domestic manufacturing while adhering to national security concerns. Whether this partnership will regain Shein’s lost popularity in India remains to be seen, but its initial traction suggests strong consumer interest.