By Abhay Ray 
Introduction
Mukesh Ambani’s Reliance Retail has launched an app for Chinese fast-fashion brand SHEIN, marking its return to India nearly five years after the latter’s app was banned amid strained diplomatic ties with Beijing. The brand’s return to India via its partnership with Reliance Retail Ventures Ltd has occurred subject to strict requirements, including the requirement that all platform data be stored locally, with no access or ownership by SHEIN, and full compliance with Indian laws. In June 2020, amid escalating tensions with China, the Ministry of Electronics and Information Technology (MeitY) banned SHEIN along with over 50 other apps. This included Chinese apps like TikTok, which were removed due to concerns over data security. Nearly three years after its ban in India, SHEIN entered into a partnership with Reliance Retail in 2023. The licensing agreement ensured that ownership and control of the platform would remain with Reliance Retail Ventures Ltd through its fully owned subsidiary.
About the brand “Shein”
Founded in 2012 and later headquartered in Singapore, Shein became known for its affordable, Western-style clothing. Despite the ban, Reliance has strategically entered a licensing agreement with Shein, enabling it to sell fashion items designed and manufactured in India under the Shein brand name.
Founded in China but now based in Singapore, Shein’s mobile app and India website, Sheinindia.in, were launched without any fanfare last week by NextGen Fast Fashion Ltd. — a wholly-owned subsidiary of Reliance Retail Ventures Ltd. overseen by Isha Ambani. The app has over 10,000 downloads on Google’s Play Store and is ranked no.9 among peers on Apple’s store, according to data from the platforms. “The OG is back,” said a banner on the landing page of Shein’s mobile app, which is selling dresses for women with a starting price as low as 349 rupees ($4) while shirts for men were retailing from 499 rupees onward.
The Driving Collaboration
So why would Mukesh Ambani’s Reliance back Shein’s return to India? The move signals Reliance’s ambition to dominate India’s fast-fashion market, capitalising on Shein’s already established global appeal. By offering affordable, trend-driven clothing, Reliance is positioning itself to tap into the burgeoning demand for Western-style fashion, particularly among younger, fashion-conscious consumers. Furthermore, the licensing model allows Reliance to leverage Shein’s brand recognition without directly importing goods from China, which sidesteps the sensitivities tied to the country’s geopolitical issues. This collaboration could redefine the fashion landscape in India, aligning with Reliance’s broader strategy of transforming retail through tech-enabled, scalable solutions that resonate with the aspirations of India’s youth.
The road back to India has come with a lot of riders. The approval for Shein has been given with strict conditions where “ownership and control of the Platform will always remain with” Reliance Retail, India commerce minister. Piyush Goyal told the Indian parliament in a written reply on Dec. 17. “As per the agreement, at all the times, the Platform will be hosted on infrastructure in India and all platform data (personal and non-personal data generated from the operation of the Platform including all data collected from Indian customers) will remain in India with Shein having no access to, or rights over, such data,” Goyal said.
Deal Between the Brands
While the specific financial details of the deal were not disclosed, it has been confirmed that Reliance is paying a license fee for using the Shein brand. There is no equity investment in the partnership. Additionally, Shein-branded products sold through the app will be designed and produced locally in India, with plans to make them available on Ajio at a later stage.Last year, India’s government revealed in Parliament that Reliance had entered an agreement with Shein, under which Indian manufacturers would supply products for Shein’s brand. However, the government did not provide further details about the arrangement.The app will initially be available in select cities, including New Delhi and Mumbai, with plans for a nationwide expansion soon. It offers a range of affordable dresses, starting at Rs 350 ($4). In another significant move, Shein is reportedly planning a listing in London in the first half of this year, after shelving its plans to list in the U.S. due to concerns raised by U.S. lawmakers over China’s requirement for approval to list abroad.
Conclusion
The launch of the Shein India Fast Fashion app brings the brand back to the Indian market, where it has a loyal customer base, offering affordable, trendy apparel to fashion-conscious shoppers. Shein’s return to India after a five-year ban signals a major shift in the country’s fashion retail landscape. With its reputation for offering trendy, affordable clothing, Shein is set to capitalize on India’s growing e-commerce market and youthful consumer base. Its comeback could shake up the competitive fast-fashion sector, challenging local brands and retailers. However, this move also raises questions about the broader geopolitical and economic implications of Chinese businesses operating in India. As Shein re-enters the market, it will need to navigate regulatory challenges while appealing to India’s increasingly fashion-conscious, digitally-savvy consumers.
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