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Shein Re-enters Indian Market After Five-Year Ban via Reliance Retail Partnership

Chinese fast fashion giant Shein has made its return to the Indian market almost five years after being banned, now operating through a strategic partnership with Reliance Retail.

Shein’s newly launched app, Shein India Fast Fashion by Reliance Retail, has quickly gained traction, accumulating over 10,000 downloads on the Google Play Store. The app has also secured a spot among the top 10 in the Apple App Store, reflecting its growing popularity among Indian consumers.

Once a dominant player in the affordable fashion segment, Shein now operates out of Singapore, offering budget-friendly fashion products to the Indian market, one of its fastest-growing regions. The company’s return follows the Indian government’s ban of its app in June 2020, amid rising tensions with China.

However, in 2023, Shein signed a partnership deal with Reliance Retail, led by Isha Ambani, the daughter of billionaire Mukesh Ambani. Through this partnership, Reliance Retail Ventures Ltd (RRVL) entered into a technology agreement with Roadget Business Pte Ltd, the owner of Shein. The collaboration focuses on developing an indigenous e-commerce platform.

While Shein’s app was blocked for a period, the government clarified in December that branded Shein products were not banned, allowing their sale through other online platforms like Amazon. The Indian government had previously cited national security concerns as the reason behind banning Shein and other apps.

As part of its re-entry strategy, Reliance Retail has also focused on creating a local manufacturing and supplier network under the Shein brand. Commerce and Industry Minister Piyush Goyal highlighted that this platform would facilitate the domestic production of Shein products, which would be sold both in India and internationally.

According to the agreement, Shein’s platform will comply with Indian regulations, including data localisation requirements. The platform’s infrastructure will be hosted within India, ensuring all user data remains in the country. Shein will not have access to, nor rights over, this data, ensuring compliance with local laws.

Established in 2008, Shein is renowned for its affordable prices and trendy fashion offerings, particularly in women’s wear. Despite the ban, Shein products remained available on third-party e-commerce platforms, and its popularity among Indian millennials continues to thrive.

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