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Shein Returns To India In Partnership with Reliance After Five Years

 

GUWAHATI: Chinese fast fashion giant Shein has made a comeback in India after a five-year ban, this time operating under a long-term licensing agreement with Reliance Retail. 

While the Indian retail conglomerate has yet to issue an official statement, a company representative confirmed to the BBC that Shein’s products, now manufactured and sourced within India, will be available on the platform.

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Shein’s return comes with rigorous conditions set by the Indian government. Commerce Minister Piyush Goyal had earlier stated that all customer and application data must be stored within India, ensuring that Shein itself has no access to user information. The deal also allows Reliance Retail to have full operational control, while Shein functions purely as a technological partner.

The fast fashion platform, banned in 2020 over data security concerns following border tensions between India and China, was relaunched on Friday night. Within hours, it had been reportedly downloaded over 10,000 times, offering fashion items at prices as low as ₹199.

Currently, Shein is reportedly only delivering in Delhi, Mumbai, and Bengaluru, but the company has plans to expand across India soon. Before its ban, Shein had gained immense popularity among Indian shoppers due to its affordable and trendy designs, leaving a gap in the market that local brands later filled.

Industry experts believe that Reliance Retail, led by billionaire Mukesh Ambani, is expanding beyond its existing business model of selling global fashion brands through Ajio. By bringing Shein back, Reliance is not only tapping into India’s growing fast fashion demand but also strengthening its position in global supply chains.

As part of the agreement, Shein will leverage India as a manufacturing hub for its international operations. It will also assist Reliance Retail in training local garment manufacturers to boost exports of Indian textiles and apparel.

Shein’s re-entry marks an exception to India’s broader ban on over 200 Chinese apps in recent years. The Indian government had cited unauthorised data collection and security risks as the primary reasons for blocking apps like TikTok, WeChat, and Shein. 

However, Commerce Minister Goyal clarified in Parliament that while the Shein app was prohibited, the sale of Shein-branded products was never banned.

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