Nearly five years after being banned, Chinese fast-fashion giant Shein is making a comeback in India, this time through a strategic partnership with Reliance Retail. The Shein India Fast Fashion app is now available on both Google Play Store and Apple’s App Store, marking a significant shift in its business model.
Unlike its previous direct operations in India, Shein will not independently manage its business this time. Instead, Reliance Retail will have full control over the Shein India Fast Fashion app, overseeing operations, logistics, and customer data management. Shein’s role will be limited to providing technological support, including the app and backend systems, without any direct ownership or involvement in sales management.
A key aspect of this partnership is ensuring that all customer data is stored within India, with Shein having no access to it. This condition addresses security concerns that led to the company’s initial ban. Additionally, Shein must undergo regular cybersecurity audits by government-approved firms to maintain compliance with Indian regulations.
Currently, Shein is focusing on major metropolitan areas, including New Delhi, Bengaluru, and Mumbai, for its initial rollout. Plans for nationwide expansion are already in motion. To attract Indian shoppers, the company has waived delivery fees and is offering competitive pricing, with dresses starting at ₹199.
Significantly, Shein’s products in India will be designed and manufactured by local suppliers, aligning with the Indian government’s initiative to strengthen domestic textile production. This move not only supports local industries but also helps Shein navigate regulatory scrutiny more effectively.
Shein’s re-entry was approved only after extensive security evaluations by multiple ministries, including the Ministry of Electronics and Information Technology and the Ministry of Home Affairs. Given India’s history of banning over 300 Chinese apps due to security concerns, this deal was subjected to rigorous checks before approval.
Before its ban in 2020, Shein had already faced regulatory challenges in India. In 2019, the government had seized several Shein shipments for allegedly misdeclaring the value of imported goods. This led to partial operational shutdowns even before the broader ban was enforced.
With Reliance Retail at the helm and stringent security measures in place, Shein is positioning itself for a more compliant and sustainable presence in India. Whether this partnership will enable Shein to regain its lost market share remains to be seen, but its latest approach suggests a long-term commitment to operating within Indian regulatory frameworks.
