So nearly five years after leaving India, Shein, the Chinese fast-fashion giant, is coming back to the country through a strategic tie-up with Reliance Retail. Shein had been banned by the Indian government in 2020 due to data security concerns.
Under the new arrangement, Reliance Retail will own the Shein India Fast Fashion app outright and manage operations and customer data. Shein will be just a technology partner, and therefore all customer data will remain in India, ensuring the security issues of the past are addressed.
The app is now accessible on both the Google Play Store and the Apple App Store, providing current and cheap fashion options. Shein will first ship to major cities such as New Delhi, Bengaluru, and Mumbai, to reach all regions of the country soon. The company also offers free shipping on all orders and fast returns.
This partnership is going to give the Indian fast-fashion market a shake, where it will be competing with Myntra, Zara, and H&M. Shein will attract young consumers who have loved its clothing at affordable prices before the ban.
Commerce Minister Piyush Goyal said this deal adds to India’s economy as it provides manufacturing employment with the most stringent data security. Now, Shein Returns to India after a rare exemption from India’s ban on Chinese apps, and the government approved the deal after security checks.
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The move saw Isha Ambani and Mukesh Ambani play an important role in bringing Shein back to India. Reliance Retail, with Mukesh Ambani’s daughter Isha at the helm, has been vigorously consolidating its position in the fashion space.
The deal has been structured as a licensing one wherein Reliance will handle all the operations and data, making sure that all the customer data will be localised.
This move is said to boost e-commerce and fashion retail in India while creating manufacturing jobs.
Shipping is already happening in major cities like Delhi NCR, Bengaluru, Mumbai, Navi Mumbai, and Thane, and countrywide shipping will be available soon.
Shein’s Comeback -A Strategic Move by Reliance Retail
Reliance Retail, led by billionaire Mukesh Ambani, has consistently developed in the garment industry. It also has an online fashion firm called AJIO and has made significant investments in leading Indian luxury fashion businesses such as Manish Malhotra, Satya Paul, and Ritu Kumar, which have helped it become a market leader. Reliance’s cooperation with Shein will improve its position in the fast-fashion business.
Addressing Data Security Concerns
One major reason for banning Shein in 2020 was concerns about data security. The Indian government banned over 300 Chinese apps because of concerns about national security and user data privacy. One of these apps is Shein. Reliance Retail will operate the entire business along with managing the customer data to ensure all of it remains locally stored within India. It caters to previous security issues as well as promotes the cause advocated by the government regarding data localization.
Boosting India’s E-commerce and Fashion Retail Sectors
As Shein Returns to India it is likely to bolster India’s online retail and fashion markets. Shein is collaborating with Reliance Retail to create more jobs in India and boost local textile production. Shein would use local suppliers to produce its products, beginning with ₹199 gowns.
Challenges and Competition
Shein has made a huge comeback as Shein Returns to India, but it still faces intense competition from established companies such as Myntra, Zara, and H&M. For years, these brands have been the darlings of Indian cities, with a large and loyal following. Shein will also need to regain the trust of Indians.
