The Chinese fast fashion app Shein has made a comeback in India through a partnership with Indian company Reliance Retail, five years after being banned by Delhi.
An official from Reliance Retail, speaking on condition of anonymity, disclosed a long-term licensing agreement with Shein's parent company to feature products manufactured and sourced in India on the platform, pending an official announcement.
Strict conditions accompany Shein's return, with India's Commerce Minister Piyush Goyal emphasizing the requirement to store all data within the country. The ban on Shein in 2020, along with many other Chinese apps like TikTok, was prompted by data security concerns amid escalating tensions between India and China.
Shein re-entered the Indian market last Friday, experiencing over 10,000 downloads thus far, offering fashion items starting at 199 rupees ($2.30; £1.90). Initially available in Delhi, Mumbai, and Bengaluru, the app plans to extend services nationwide.
Known for its global success, Shein transformed from being relatively unknown to a major player in fast fashion, serving customers in 150 countries. The ban in India created an opportunity for local brands to thrive in its absence.
Experts suggest that Reliance Retail, led by Indian billionaire Mukesh Ambani, is deviating from its usual practice of offering international brands with the introduction of Shein India.
Reliance Retail will manage operations and data control, with Shein acting as a technological partner, as stated by Goyal in the Indian parliament. All customer and app data will be stored locally, ensuring no access for Shein.
The agreement between Shein and Reliance Retail highlights a shift from India's extensive ban on Chinese apps, aiming to leverage India as a supply hub for Shein's global expansion and support Indian garment manufacturers.
The resurgence of Shein in India signifies a unique departure from the ban on numerous Chinese apps over the past five years, attributing the decision to concerns over data misuse and unauthorized data transmission.
The ban also affected popular apps like TikTok and PUBG, the latter of which underwent rebranding and was re-launched in India as Battlegrounds Mobile India under Krafton India.