Chinese fast fashion giant Shein has officially made its return to the Indian market after nearly five years, re-entering under a licensing agreement with Reliance Retail. The move comes after Shein, along with several other Chinese apps like TikTok, was banned in 2020 due to data security concerns arising from the border tensions between India and China. While the launch of the Shein India Fast Fashion app on Saturday has not been publicly announced by the companies, sources confirm the news.
Under the terms of the agreement, Reliance Retail, owned by billionaire Mukesh Ambani, will manage manufacturing and sourcing for Shein’s operations in India, operating the brand through a licensing model. Shein will pay a license fee to use its brand name but will not receive any equity investment from Reliance. As part of the conditions set by the Indian government, all customer data and application information must be stored within India, and Shein will have no access to it.
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The app, which initially launched in New Delhi, Mumbai, and Bengaluru, is expected to expand nationwide in the coming months. Shein aims to offer affordable fashion, with prices starting as low as $2.30. Users are greeted with the phrase, “The fashion OG is back,” upon opening the app. Shein’s return to India also comes with plans to use the country as a sourcing hub for its global business, collaborating with Indian garment manufacturers to boost exports in the textile sector.
Reliance Retail’s involvement is seen as a strategic move to bolster its portfolio, competing with rivals like Walmart’s Myntra and Flipkart in India’s growing e-commerce market. While Shein-branded products are currently available only through the new standalone app, they will eventually be integrated into Ajio, Reliance’s flagship fashion platform.
Shein’s return, facilitated by Reliance, is one of the few notable exceptions to India’s ban on Chinese apps. The company is also working on listing on the London Stock Exchange after abandoning plans to go public in the US due to concerns about Chinese influence on foreign-listed companies.
