Shein returns to India after five-year ban through Reliance Retail partnership

Shein returns to India after five-year ban through Reliance Retail partnership

Chinese fast fashion giant Shein has officially re-entered the Indian market, five years after being banned by the government. The relaunch is being facilitated through a strategic partnership with Indian conglomerate Reliance Retail, which has secured a long-term licensing deal with Shein’s parent company. Under this agreement, Shein-branded products will now be manufactured and sourced locally in India while being sold on the platform managed by Reliance Retail.

An official from Reliance Retail, who spoke anonymously, confirmed the partnership to the sources, though the company has yet to issue a formal announcement. The revival of Shein in India comes with strict operational conditions, including a mandate that all user and business data be stored within the country. India’s Commerce Minister, Piyush Goyal, had outlined these requirements in December, emphasizing that Shein will function primarily as a technological partner while Reliance Retail maintains full control over operations and data management.

Shein was among dozens of Chinese apps, including TikTok, banned by India in 2020 due to data security concerns. The move followed rising tensions between India and China, particularly after violent clashes between their militaries in a disputed border region. Indian authorities cited risks related to unauthorized data transmission as a key reason for the crackdown on Chinese digital platforms.

However, the ban only applied to the Shein app and not the sale of Shein-branded products. Under its new arrangement, Shein will leverage India’s manufacturing sector as a key supply hub for its global operations. This collaboration is also expected to help Reliance Retail strengthen its textile supply chain and train Indian garment manufacturers, ultimately boosting exports from India.

The Shein app was relaunched in India on Friday night and has already garnered more than 10,000 downloads. Currently, it is only delivering orders in Delhi, Mumbai, and Bengaluru, but expansion plans indicate that services will soon be available across the country. The platform is offering affordable fashion items, with prices starting as low as 199 rupees ($2.30; £1.90), aiming to regain its former popularity among Indian consumers.

Before its ban, Shein was widely embraced in India for its trendy yet budget-friendly fashion options, creating a significant market void when it was removed. Over time, local brands and retailers filled this gap, but Shein’s return is expected to intensify competition in the fast fashion sector. Industry experts suggest that Reliance Retail’s involvement in Shein India aligns with its broader strategy of expanding its portfolio beyond selling global brands through its flagship online retailer, Ajio.

Shein’s comeback under Reliance Retail marks a rare case of a Chinese platform returning to the Indian market after being banned. Since 2020, India has blocked more than 200 Chinese apps, citing concerns over unauthorized data collection and national security threats. Other major platforms were also banned. However, With Shein now operating under strict regulatory conditions, its success in India will depend on how well it navigates these new operational constraints while also reclaiming its consumer base in one of the world’s largest fashion markets.