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Shein Makes a Comeback in India via Reliance Retail After Five-Year Ban

share-iconMonday, February 03 comment-icon2 hours ago 1 views
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Shein Makes a Comeback in India via Reliance Retail After Five-Year Ban

Credited from: BBC

  • Shein has relaunched its app in India under a licensing deal with Reliance Retail.
  • The app was initially banned in 2020 due to data security concerns amid rising tensions between India and China.
  • Products will be designed and manufactured in India, with deliveries starting in select cities.
  • All user data will be stored locally, complying with Indian regulations.
  • Shein aims to leverage Indian manufacturing capabilities for its global operations.

Chinese fast fashion giant Shein has officially re-entered the Indian market with the launch of a new app developed under a licensing agreement with Reliance Retail, marking its return nearly five years after it was banned in the country. The app, which offers a wide range of trendy, low-cost clothing, was made available for downloads as of February 2, 2025, and is currently limited to select metropolitan areas like Delhi, Mumbai, and Bengaluru. According to a source familiar with the company's launch plans, Reliance had not made an official announcement regarding the launch of the Shein India Fast Fashion app.

Shein, founded in 2012 and initially based in China, saw its app banned in 2020 alongside other Chinese applications due to concerns over user data security in light of heightened diplomatic tensions between India and China. Under the new agreement, products offered on the app will be manufactured and sourced from Indian suppliers, promoting local production while enabling Reliance to diversify from its typical strategy of adding international brands to its flagship platform, Ajio, which competes with Walmart's Myntra.

The competitive pricing has already garnered attention, with offerings starting as low as ₹199 (US$2.30). As the app gains traction, now with more than 10,000 downloads shortly after launch, Reliance has committed to maintaining strict operational standards including storing all user data within India. This move is in line with stipulations set forth by India's Commerce Minister, Piyush Goyal, who emphasized the importance of data management in the partnership.

Furthermore, Reliance's association with Shein is intended to utilize Indian manufacturing resources, aiding both brands in enhancing their global reach. This arrangement allows Reliance to train local garment manufacturers while establishing India as a vital supply chain component for Shein's wider operations.

The return of Shein is significant as it stands out from India’s ongoing restrictions against more than 200 other Chinese apps, marking a notable exception in a landscape heavily scrutinized for data privacy violations. As Shein's app reignites its popularity in India, analysts speculate its potential impact on the local fashion industry and consumer choices.

For further details, visit Reuters, South China Morning Post, and BBC.

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