The re-launch includes stringent regulations with an emphasis on data security and local manufacturing.
**Shein Makes a Comeback in India: A Look at the Re-Entry Under New Regulations**
**Shein Makes a Comeback in India: A Look at the Re-Entry Under New Regulations**
Chinese fashion retailer Shein returns to India through a new partnership with Reliance Retail, five years after being banned.
Chinese fast fashion giant Shein has officially re-launched its operations in India, nearly five years after the Indian government imposed a ban on it along with many other Chinese apps over data security concerns. This resurgence in the Indian market comes through a new partnership with Reliance Retail, a significant player in India's retail landscape owned by billionaire Mukesh Ambani.
The ban on Shein and similar apps in 2020 occurred amidst rising geopolitical tensions between India and China, largely due to clashes over a disputed Himalayan border territory. In light of these past relations, Shein's re-entry is governed by strict guidelines established by India’s Commerce Minister, Piyush Goyal. Notably, all user data collected by the app must be stored within Indian territory, and Shein will be restricted from accessing this information.
Despite the previous ban, Shein had established a solid consumer base in India prior to 2020, attracting fashion-forward shoppers with an array of affordable trendy clothing. The app is newly active and, as of now, has seen over 10,000 downloads since its re-launch, providing products that start from 199 rupees (approximately $2.30). Currently, orders are only shipped to major metropolitan cities like Delhi, Mumbai, and Bengaluru, but plans are underway for wider distribution across the country.
Reliance Retail’s strategy with Shein indicates a shift from merely offering foreign brands through its existing platform Ajio to developing in-house capabilities bolstered by Shein’s technological partnerships. Reliance aims to utilize the Indian market as a crucial manufacturing hub for Shein’s global operations while also potentially boosting local markets through training programs for Indian garment manufacturers.
Shein’s comeback is especially noteworthy as it stands as one of the few exceptions to India's crackdown on over 200 Chinese apps following national security concerns. The previous ban aimed to curtail unauthorized data collection practices, a concern that has motivated renewed scrutiny of companies operating in the digital space.
As Shein forges ahead, it's seen not just as a brand looking to capitalize on the reviving Indian economy but as an entity that might act as a driver for local industries while remaining under the watchful eye of regulatory standards.
