Shein Returns To Indian Market Through A Partnership With Reliance

Shein, the Chinese fast-fashion retailer, has reentered the Indian market through a collaboration with Reliance Retail, nearly five years after its app was banned due to strained relations between India and China.

The newly introduced Shein India Fast Fashion app, developed and launched by billionaire Mukesh Ambani's Reliance Retail, marks a major milestone for the brand's return to one of Asia's largest retail markets. After nearly five years of absence following the app's ban, the relaunch comes with stringent conditions, placing complete control of operations and data management in the hands of Reliance. This partnership underscores the growing influence of Reliance in India's retail sector while marking a significant shift in how Shein will operate in the country moving forward.

As part of the new partnership, which was recently outlined by India's commerce ministry, Shein will only act as a technology partner, while Reliance will fully own the platform through its subsidiary. This arrangement ensures that all customer data is stored within India, and Shein will have no access to this data. Reliance will have complete control over both the platform and the data, marking a significant shift in how Shein operates in India compared to its previous model.

Shein has begun offering delivery in select cities, including New Delhi and Mumbai, and is planning to expand its reach across India in the near future, as stated in the app description. The platform features a range of products, such as dresses priced from 350 rupees ($4), with all items being designed and manufactured locally in India by Indian manufacturers. The app's welcome message, "The OG is back," marks Shein's highly anticipated return to the Indian market, signaling the brand's efforts to rebuild its presence while catering to local consumers.

The agreement marks an unusual exception to India's widespread ban on Chinese apps, a move that has affected more than 300 platforms since 2020. To secure approval for its return, Shein committed to unprecedented oversight measures designed to address security concerns. These include regular audits of the app's security systems by government-approved cybersecurity firms, ensuring that Shein's operations comply with India's stringent data privacy and security regulations. This careful approach reflects India's cautious stance on foreign apps while attempting to balance economic opportunities with national security interests.

Shein is planning to list on the London Stock Exchange in the first half of the year, as part of its efforts to expand globally and strengthen its financial position. It abandoned its plans to list in the U.S. after facing opposition from lawmakers who raised concerns about China's requirement for companies to obtain government approval before listing abroad.