Isha Ambani and Mukesh Ambani’s Reliance Retail have successfully relaunched Shein in India, nearly five years after the fast-fashion giant’s app was banned in the country amid escalating diplomatic tensions between India and China. The newly launched Shein India Fast Fashion app, developed under a licensing agreement with Reliance, marks the return of Shein to one of Asia’s largest retail markets. This partnership comes with stringent conditions, including Reliance’s control over operations and data, with all customer information stored in India. The move also signals a shift in Reliance’s approach, as the company seeks to strengthen its e-commerce footprint by offering Shein’s popular, affordable fashion through a fully localized platform.
Reliance Retail has officially launched a new app in India to sell fashionwear from China’s Shein, marking the return of the popular fast-fashion platform nearly five years after its app was banned in the country due to diplomatic tensions between India and China. The app, called Shein India Fast Fashion, was quietly launched on Saturday morning, according to reports, but Reliance has not made an official announcement yet.
Shein, founded in China in 2012 and now headquartered in Singapore, became a sensation for offering trendy, affordable Western clothes. However, it faced a setback in 2020 when India banned Shein, along with other Chinese apps like TikTok, citing national security concerns amid growing border disputes between the two countries. As a result, the platform, which had been extremely popular in India, was no longer accessible to consumers.
Despite the setback, Shein is now making its comeback in India through a licensing partnership with Reliance Retail, owned by billionaire Mukesh Ambani. Under this partnership, Reliance will pay a licensing fee to use the Shein brand name, but there will be no equity investment involved. While Reliance has yet to publicly discuss the financial details, the deal represents a significant shift from its usual strategy. Rather than simply adding international brands to its own Ajio fashion app—where it currently offers labels like Superdry and Gap—the new partnership will give Shein a dedicated platform for Indian consumers.
Shein’s return marks a pivotal moment, as the company will operate under stringent conditions. Reliance will retain complete control over the platform and all operations, with Shein acting solely as a technology partner. A major stipulation of this partnership is that all customer data will be stored locally in India, with Shein having no access to it. This move is in line with the Indian government’s efforts to protect data sovereignty and safeguard sensitive consumer information. Shein will also be required to undergo regular security audits by government-approved cybersecurity firms to ensure compliance with India’s strict data regulations.
The new Shein India app is offering a wide range of fashion items at budget-friendly prices, with dresses starting as low as 199 rupees (around $2.30). Initially, the app will be available for customers in select cities such as New Delhi, Mumbai, and Bengaluru, with plans to expand to other regions soon. One of the notable features of the app is that all Shein-branded products sold through the platform will be designed and manufactured in India by local manufacturers, aligning with India’s push to boost its domestic textile industry.
Reliance’s move to relaunch Shein in India is part of its broader strategy to strengthen its e-commerce presence and challenge the dominance of rivals such as Flipkart, Amazon, and Meesho, especially in the highly competitive fashion e-commerce sector. Despite operating the country’s largest retail chain, Reliance has struggled to make significant inroads in online retail. Flipkart, in particular, has been a strong competitor in fashion e-commerce, with its Myntra platform recently introducing fast delivery options such as same-day delivery within 30 minutes for some orders.
For Shein, this collaboration presents a strategic opportunity to re-enter one of Asia’s largest and fastest-growing retail markets, especially as it prepares for a potential public listing. The platform has been planning to go public in London later this year, following its halted attempt to list in the U.S. due to objections from lawmakers regarding China’s requirements for businesses to obtain government approval before listing abroad.
This partnership is a rare exception to India’s ongoing ban on Chinese apps, which has affected over 300 platforms since 2020. The approval process for Shein’s return involved extensive vetting by various Indian government ministries, including IT and Home Affairs, with special attention to ensuring that Shein complies with India’s stringent cybersecurity and data protection laws. Commerce Minister Piyush Goyal emphasized that the partnership aims to promote the growth of India’s textile manufacturing sector while safeguarding data privacy and national security interests.
Overall, Shein’s return to India under the Reliance partnership represents a significant shift in the landscape of India’s fast-fashion industry, signaling not just a victory for Shein, but also for the evolving dynamics of international business in the region. As Reliance continues to solidify its place in India’s retail market, Shein’s low-cost offerings, combined with Reliance’s expansive reach and local manufacturing efforts, are poised to shake up the competitive landscape, particularly in the realm of online fashion shopping.
