After a five-year ban, Shein officially relaunched in India, leveraging local manufacturing while ensuring data compliance under strict regulations.
**Shein Makes a Comeback in India After Five-Year Hiatus**
**Shein Makes a Comeback in India After Five-Year Hiatus**
Chinese fashion retailer Shein returns to the Indian market in partnership with Reliance Retail.
Chinese fast fashion giant Shein has officially re-entered the Indian market five years after a ban was imposed, this time collaborating with Reliance Retail. An anonymous source at Reliance confirmed to the BBC that they have secured a long-term licensing agreement with Shein’s parent company, allowing the platform to sell locally manufactured and sourced products. Although no formal announcement has been made by the group, the app was launched on Friday and has already garnered over 10,000 downloads.
The relaunched Shein is rolling out its offerings amid stringent conditions set by the Indian government. As disclosed by Commerce Minister Piyush Goyal, all data associated with the platform will be stored domestically. In light of previous security concerns, this requirement aligns with India's commitment to protecting consumer data.
Shein’s original ban in 2020 was a part of a broader crackdown that saw the prohibition of dozens of Chinese applications, including TikTok, in response to rising tensions due to territorial clashes in the Himalayan region. The app gained immense popularity during its initial presence in India, making trendy fashion affordable. However, its absence created a vacuum that enabled local fashion players to thrive.
The current reintroduction of Shein sees Reliance Retail, helmed by Indian billionaire Mukesh Ambani, diversifying its portfolio. Goyal mentioned that Reliance will maintain full control over its operations, while Shein will primarily function as a technological partner. The agreement allows Shein to utilize India as a dedicated supply chain hub to bolster its global operations, while also contributing to the training of local textile manufacturers.
Interestingly, this collaboration serves as a peculiar exception to India’s extensive ban on over 200 Chinese applications, initiated due to widespread data privacy complaints. Other notable apps like TikTok and the gaming platform PUBG faced similar restrictions, although PUBG has since been successfully rebranded as Battlegrounds Mobile India by Krafton India.
