The popular app, which once captivated Indian shoppers with affordable trendy fashion, returns under stringent conditions aimed at ensuring data security and operational transparency.
Shein Makes a Comeback in India After Five-Year Hiatus
Shein Makes a Comeback in India After Five-Year Hiatus
Chinese fast fashion brand Shein has been re-introduced in India following a five-year ban, thanks to a new partnership with Reliance Retail.
Chinese fast fashion giant Shein is back in the Indian market after a five-year ban, this time partnering with Reliance Retail. An unnamed official from Reliance revealed to the BBC that the two companies have entered into a long-term licensing agreement, allowing Shein to sell products that are manufactured and sourced in India. While an official announcement is still pending, the app has officially launched in India, quickly amassing over 10,000 downloads since its debut on Friday night.
The relaunch follows India's decision to ban Shein and numerous other Chinese applications in 2020, citing data security issues amidst rising geopolitical tensions with China. Commerce Minister Piyush Goyal outlined key stipulations for Shein's re-entry, which mandate that all user data be stored locally, effectively limiting Shein's access to this information.
Initially a sensation among Indian consumers for its trendy yet budget-friendly designs, Shein filled a considerable gap in the market prior to the ban. In recent years, various local players have since emerged to take advantage of this void. Nevertheless, experts suggest that through its alliance with Reliance Retail, owned by billionaire Mukesh Ambani, Shein is set to diversify the local market landscape beyond its existing strategic framework of promoting international brands through its established online retailer, Ajio.
Notably, these recent developments come with strict control over operations and data by Reliance. The Indian government has clarified that the ban was specifically against the Shein app and not against the sale of Shein-branded merchandise. The company plans to utilize India as a sourcing hub for its global operations, aiding local garment manufacturers in export endeavors, according to a Reliance official.
The re-entry of Shein stands as a notable exception amidst India’s ongoing restrictions on over 200 Chinese applications due to various concerns regarding unauthorized user data collection. This case highlights the complexities of global trade and digital commerce, with Shein's re-entry paving the way for a renewed focus on consumer trends in the fast fashion sector within India.
