Reliance brings back Shein to India after ban: All you need to know

Reliance Retail has officially brought Shein back to the Indian market nearly five years after the brand was banned for fast fashion. The new app, Shein India Fast Fashion, was quietly launched on Saturday, marking a strategic entry of Reliance into the highly competitive fashion e-commerce space in India.

Shein’s Comeback Post-2020 Ban

Shein is known for offering a wide array of cheap Western fashion. Shein was one of several Chinese apps banned by India in 2020, owing to data safety issues amid a border dispute between the countries. As per the 2023 disclosures of the Indian parliament, the licensing deal was secured in favor of Reliance, thus permitting the return of Shein on new terms. The licensing framework allows for using Shein branded products that are either designed or manufactured locally in line with Indian regulations.

Also read: Sabyasachi thanks Kumar Mangalam Birla for ‘Safeguarding his brand’s Legacy’

Instead of integrating Shein into the existing fashion platform Ajio, it has been decided by Reliance that it would launch Shein as a standalone app. As of now, delivery for Shein India Fast Fashion is available in select cities like New Delhi and Mumbai, with future plans to expand across the country. Dresses start from just ₹350 ($4), aimed at India’s value-fashion shoppers.

Reliance-Shein Partnership Details

Reliance is not an equity partner with Shein. Instead, it restricts itself to incorporating Shein’s brand name through a licensing agreement, according to the source cited by Reuters. Although the elaborate financial details of the collaboration remain under wraps, it permits Shein to re-enter India with the support of Reliance’s large, strong, and well-installed base in the local market, compliance with domestic regulations, and local knowledge.

A second source confirmed that all Shein goods, available in India, will be produced locally in line with the economic policies of the country. Also, very soon, Shein products will also be available on Ajio, although a timeline is not mentioned.

Also read: Economic Survey 2024-25: India’s Economy projects GDP growth of 6.4% for FY25

Founded in China in 2012, Shein later shifted headquarters to Singapore and has pursued aggressive growth in global markets. It first sought a public listing in the U.S. but faced opposition from U.S. lawmakers over fears regarding China’s regulatory supervision on overseas listings. Currently, Shein is prepared for an IPO in London, which is expected to be in the first half of 2025.

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