Credited from: REUTERS
Shein has officially re-entered the Indian market through a newly launched app, Shein India Fast Fashion, in collaboration with Reliance Retail, owned by billionaire Mukesh Ambani. This comes nearly five years after the popular fast-fashion app was banned in India due to data security concerns and rising tensions between India and China. The ban began in 2020, affecting not only Shein but also several other Chinese apps, including TikTok, amid national security apprehensions over the data privacy of Indian users.
The app was launched on January 27, and a pop-up message joyfully announced, "The fashion OG is back!" Initial offerings include budget-friendly items such as dresses priced as low as 199 rupees ($2.30), making it very competitive within the fast-fashion sector. Currently, the app is available for download in select cities including New Delhi, Mumbai, and Bengaluru, which will soon expand to a nationwide shipping model, as outlined by SCMP.
The partnership between Reliance and Shein will not entail any equity investment; instead, Reliance will pay a licensing fee for the Shein brand and manage the app's operational aspects comprehensively, ensuring all customer data remains within Indian jurisdiction. This strategic move allows Reliance Retail to diversify its offerings beyond its flagship fashion platform, Ajio, which is known for incorporating international brands.
Moreover, India's Commerce Minister, Piyush Goyal, stated that the collaboration is expected to foster local manufacturing as Indian producers will supply products under the Shein brand, reinforcing the importance of local industry while simultaneously appealing to a rapidly growing consumer market. The app has reportedly been downloaded over 10,000 times shortly after its launch, showing strong initial user interest, according to Reuters.
With challenges persistently looming due to possible tariffs on Chinese goods in the U.S., Shein's comeback in India signifies a critical maneuver to regain market footing within the world's largest consumer base, which consists of nearly 1.43 billion individuals. Overall, Shein's re-entry represents a crucial step for the brand in rebuilding its international presence and adapting to changing market dynamics.
For further information, visit the detailed reports on Shein's re-entry from Business Insider, BBC, SCMP, and Reuters.