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Shein returns to India via Reliance Retail partnership

Entrackr · 1d

Shein, the Chinese fast-fashion company, is returning to India nearly five years after being banned. This time, it is re-entering the market through a partnership with Reliance Retail. The app is available on both the Google Play Store and Apple's App Store. Unlike before, Shein will not operate the business itself. Reliance Retail will have full control over the Shein India Fast Fashion app, managing everything from operations to customer data. Shein will act solely as a technology partner, providing the app and backend systems without any ownership or direct involvement in managing sales. A key condition of this deal is that all customer data must be stored in India, with Shein having no access to it. This arrangement addresses security concerns, which were a major reason for Shein’s initial ban. For now, Shein is offering deliveries in major cities like New Delhi, Bengaluru, and Mumbai, with plans to expand across India soon. It has also made shopping more attractive by waiving delivery fees. The company’s products, including dresses starting at ₹199, will be designed and manufactured in India by local suppliers. This move aligns with the Indian government’s push to boost domestic textile production. The Indian government approved the deal only after thorough security checks by multiple ministries, including IT and Home Affairs. Shein must also undergo regular cybersecurity audits by government-approved firms to ensure compliance. Since 2020, India has banned over 300 Chinese apps due to security concerns and tensions between the two countries. Earlier in 2019, the government had seized various Shein shipments for attempting to import bulk goods from China while under-declaring their value. These government measures had an immediate impact, leading Shein to partially shut down operations in July 2019.