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VIJAY PANJWANI

Learning is a key to... • 6m

Reliance is bringing back a BANNED Chinese company to India! Here’s how they did it: Reliance has tried launching its own fast fashion chains—Azorte, Yousta, and Reliance Trends. But none really took off.So this time, they pulled a different move. Instead of relying on their own brands, they launched an app dedicated to selling fashionwear from the banned Chinese brand—SHEIN.But wait—wasn’t SHEIN banned in India in 2020? Yes! It was part of a larger crackdown on Chinese apps over privacy concerns.So how did SHEIN bypass this? Instead of investing in India, SHEIN is licensing its trademarks and IP to Reliance in exchange for a share of profit.This loophole lets SHEIN skip the 30% local sourcing rule, since 93% of its products are sourced from China. From a business perspective, it makes sense—SHEIN’s low prices come from sourcing and manufacturing in China, where costs are much lower than competitors.

2 Replies

Replies (2)

Anonymous 1

Hey I am on Medial • 6m

We banned SHEIN over data and security concerns, but now it’s back through Reliance. If the core issue was China’s influence, does changing the owner on paper really fix anything? 🤔

1 Reply

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