Chinese fast fashion app Shein has made its return to the Indian market, five years after being banned by the government, through a partnership with Indian company Reliance Retail.
A Reliance Retail official, speaking anonymously, confirmed to the BBC that the company entered into a long-term licensing agreement with Shein’s parent company to sell products made and sourced from India on the platform.
However, no official announcement has been made yet.
Shein’s comeback comes with strict conditions set by the Indian government, including the requirement to store all data within the country.
India’s Commerce Minister, Piyush Goyal, had emphasized this condition in December.
In 2020, India had banned Shein along with several other Chinese apps, including TikTok, citing data security concerns and rising tensions with China following border clashes.
Shein relaunched on Friday night and has already been downloaded by over 10,000 users. Initially, it is offering affordable fashion items priced as low as 199 rupees ($2.30) in cities like Delhi, Mumbai, and Bengaluru, with plans for nationwide availability soon.
Shein’s popularity surged before the ban due to its affordable, trendy fashion options. After its removal, local competitors filled the market gap.
Experts believe the new partnership with Reliance Retail, led by billionaire Mukesh Ambani, signals a shift from Reliance’s usual focus on selling international brands through its Ajio platform.
Under the agreement, Reliance Retail will manage Shein’s operations and control all customer and application data, while Shein will act as a technology partner.
The app’s data will be kept in India, with Shein having no access rights. Goyal clarified that the ban specifically targeted the Shein app, not the sale of Shein-branded products.
The partnership also aims to bolster India’s textile and garment export industry by using the country as a source for Shein’s global operations, training local manufacturers.
This deal marks a rare exception to India’s broader ban on over 200 Chinese apps in the past five years, which was imposed due to concerns over unauthorized data transmission and privacy issues.
Source-BBC
