Reliance Retail has partnered with Chinese fast-fashion brand Shein to relaunch the Shein app in India. The app, called “SHEIN India Fast Fashion,” marks Shein’s return to the Indian market nearly five years after it was banned in 2020 due to data security concerns. Under the partnership, Reliance Retail will own and operate the app, while Shein will serve as a technology partner.
This arrangement ensures compliance with India’s data sovereignty laws, as all customer data will be stored in India and Shein will not have access rights. The move is seen as a strategic effort by Reliance to tap into the growing demand for affordable fashion among India’s young population. It also positions Reliance to compete with established players like Myntra, a part of Walmart’s Flipkart group.
Shein, known for its trendy and budget-friendly clothing, had built a substantial user base in India before the ban. The platform’s return is expected to intensify competition in the fast-fashion segment.
Reliance reintroduces Shein to India
Initially, the app will offer deliveries in select cities like New Delhi, Bengaluru, and Mumbai, with plans to expand nationwide soon. Products include made-in-India dresses priced as low as 199 rupees (approximately $2.3). To secure approval for its return, Shein agreed to extensive oversight measures, including regular security audits by government-approved cybersecurity firms.
Commerce Minister Piyush Goyal stated that the approval process involved thorough vetting by multiple ministries to ensure compliance with India’s regulatory framework. The partnership between Reliance Retail and Shein is a licensing agreement, with no equity investment involved. Reliance will pay a licensing fee to use the Shein brand name.
This collaboration marks a significant milestone in Reliance Retail’s strategy to diversify its brand portfolio and strengthen its market presence in India’s burgeoning fashion retail sector. It also highlights Reliance’s adaptability in bringing diverse international brands to Indian consumers while navigating regulatory challenges.
