Shein Partners with Reliance for India Relaunch After 2020 Ban
Shein is making a long-anticipated return to India nearly five years after being banned. The company, which was among the 59 Chinese apps prohibited in 2020 due to national security concerns, is re-entering the market through a partnership with Reliance Retail, India’s largest retailer.
The Shein-Reliance partnership: what’s changing?
Unlike its previous direct-to-consumer model, Shein’s return to India is happening through a licensing agreement with Reliance Retail. This means Shein will not directly operate in India but will allow Reliance to use its branding and product designs while managing local production and sales.
To comply with government regulations, Shein’s products will now be made by Indian manufacturers rather than imported from China. All e-commerce operations, logistics, and marketing will be handled by Reliance, with Shein acting as a design and branding partner. Shein’s collections will also be available on Ajio, Reliance’s fashion and lifestyle e-commerce platform, expanding its reach across India.
The initial launch is focused on metro cities like Mumbai and New Delhi, with plans to expand into tier-2 and tier-3 cities.
Despite its worldwide success, Shein has faced hurdles in global markets. In the US, where Shein has a strong presence, rising import tariffs on Chinese goods have put pressure on the brand. Concerns over labor practices and data security have led to scrutiny in markets like Europe and Australia.
India, however, presents a significant opportunity. The country’s fast fashion industry is growing, fueled by an expanding middle class and increasing smartphone usage. With the country expected to become the world’s third-largest online retail market by 2030, the fashion e-commerce market is projected to grow at a CAGR of 10% over the next five years.
Expectations from Shein India
Shein’s return is expected to reshape India’s fast fashion landscape, with affordability, accessibility, and trend-driven collections at its core.
Shein’s business model is built on delivering fashion at ultra-low prices. Early product listings indicate that dresses may be priced as low as ₹350, with significant discounts expected during major sales events. Free shipping and easy returns could also be introduced to attract first-time buyers.
Initially, Shein’s collection will be available through the Shein India Fast Fashion app. Over time, its products will also be featured on Reliance’s Ajio platform, increasing accessibility for Indian consumers. Reliance’s extensive warehousing and supply chain infrastructure is expected to reduce delivery times compared to Shein’s earlier direct-import model.
The launch is limited to cities like Mumbai and New Delhi, but Reliance plans to expand deliveries to tier-2 and tier-3 cities in the coming months. Faster and more reliable shipping could be a major advantage compared to Shein’s past operations in India.
Competition and regulatory considerations
Shein’s return comes at a time when India’s fast fashion industry is more competitive than ever. Platforms like Myntra, Ajio, and Flipkart Fashion have strengthened their offerings since Shein’s exit, making the market tougher to penetrate.
Homegrown brands like Urbanic, FabAlley, and Bewakoof have gained popularity in Shein’s absence. Shein’s aggressive pricing may put pressure on these companies, leading to price wars or brand repositioning. Global players like H&M and Zara could also face added competition, particularly in the budget and mid-tier fashion segments.
One of the main reasons for Shein’s 2020 ban was national security concerns related to data privacy. This time, several safeguards have been put in place. Reliance fully controls data and transactions, reducing concerns about Chinese access. Indian manufacturers are producing Shein’s merchandise, decreasing reliance on imports from China. No direct Chinese investment is involved, as Reliance operates the business under a licensing model.
Unlike in other markets, Shein is now dependent on Reliance’s supply chain, pricing strategies, and distribution network. Despite Reliance’s involvement, trade and policy shifts between India and China could impact Shein’s business model. Stricter import regulations or data protection laws might require additional operational adjustments. Additionally, the push for local manufacturing aligns with government initiatives, which could help Shein establish a long-term presence.
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