The Chinese fast-fashion giant Shein has made an exciting comeback in India by teaming up with the local powerhouse, Reliance Retail, owned by billionaire Mukesh Ambani. This marks Shein’s return to one of Asia’s most bustling retail markets nearly five years after its ban due to diplomatic tensions between India and China.
The return is orchestrated through the Shein India Fast Fashion app, developed and launched by Reliance Retail. This revival is timed as the Chinese company gears up for a highly anticipated stock market debut later this year.
However, Shein’s relaunch isn’t without restrictions. Under the terms laid out by India’s commerce ministry, Reliance holds complete control over the operations and data of the platform. Shein will merely serve as a technology partner, with Reliance’s subsidiary retaining full ownership. All customer data must remain in India, and Shein is not permitted access, ensuring data security and sovereignty.
For Reliance, integrating Shein into its portfolio is a strategic shift. Unlike its usual practice of bringing brands like Muji under its Ajio fashion app, Shein offers a significant boost to its e-commerce ambitions. Despite its position as the largest retail chain and top telecom operator in India, Reliance has found it challenging to outpace competitors like Flipkart, Amazon, Meesho, and newer quick-commerce startups in the digital domain. Flipkart, for instance, dominates the fashion e-commerce sector, with its Myntra platform even offering order delivery within 30 minutes.
At launch, Shein offers delivery services in major cities such as New Delhi, Bengaluru, and Mumbai, with plans to expand nationwide soon. Impressively, there are no delivery charges, with prices for items like dresses starting at just 199 rupees ($2.3). All products are designed and produced locally, creating a boost for India’s textile manufacturing industry.
This particular deal represents an extraordinary exception to India’s ongoing ban on Chinese apps, which has impacted over 300 platforms since 2020. To gain approval, Shein accepted rigorous oversight, including security audits by government-approved cybersecurity firms.
Commerce Minister Piyush Goyal noted the comprehensive vetting process involved, carried out by multiple ministries, highlighting the objective of enhancing India’s textile sector while ensuring strict adherence to data sovereignty principles.
