Chinese fast-fashion giant Shein has re-entered the Indian market nearly five years after its ban, through a strategic partnership with Reliance Retail, a subsidiary of India’s conglomerate Reliance Industries. This collaboration marks a significant development in India’s retail landscape, blending Shein’s global fashion reach with Reliance’s extensive domestic presence.
Background of the Ban
In June 2020, the Indian government banned Shein along with several other Chinese apps, citing concerns over national security and data privacy amid escalating geopolitical tensions. The Ministry of Electronics and Information Technology invoked Section 69A of the Information Technology Act, which allows the government to block access to information that threatens the sovereignty and integrity of India.
Strategic Partnership with Reliance Retail
Shein’s return to India is facilitated through a licensing agreement with Reliance Retail. Under this partnership, Indian manufacturers will produce Shein-branded products, which will be available on the newly launched Shein India Fast Fashion app and eventually on Reliance’s Ajio fashion platform. Reliance Retail will manage the platform’s operations and data within India, ensuring compliance with local regulations.
Launch of Shein India Fast Fashion App
The Shein India Fast Fashion app, operated by Reliance Retail, became available on Apple and Google app stores in late January 2025. Initially, deliveries are limited to select regions, including Delhi NCR, Mumbai, and Bangalore, with plans for nationwide expansion in the near future. The app offers a wide range of affordable fashion products, with dresses priced as low as 350 rupees (approximately $4).
Market Implications and Future Prospects
Shein’s re-entry into India comes at a time when the company faces challenges in other markets, particularly the United States, due to new tariffs on Chinese goods. The partnership with Reliance Retail not only provides Shein access to India’s vast consumer base but also aligns with India’s strategy to attract foreign investment and boost local manufacturing. This collaboration is expected to intensify competition in India’s fast-fashion sector, challenging established players like Myntra and Tata’s Westside.
In summary, Shein’s return to the Indian market through its alliance with Reliance Retail signifies a notable shift in the country’s retail dynamics, offering consumers a blend of global fashion trends and local manufacturing.
