The Chinese fast-fashion platform Shein was re-launched in India by a partnership with the retail chain of the local conglomerate Reliance, almost five years after it was forbidden in the midst of diplomatic tensions between New Delhi and Beijing.
The new Shein India Fast Fashion app, developed and launched by billionaire Mukesh Ambani’s Reliance Retail, marks the considerable return of the company to one of the largest retail markets in Asia prior to the long -awaited list of the Chinese company later this year.
The revival of the app falls under strict conditions that depend on full control over operations and data. Under the partnership structure – recently announced by the Indian Ministry of Trade – Shein will work Puur Puur as a technology partner, with Reliance that maintains fully owned by the Platform through his subsidiary. The scheme requires that all customer data is stored in India, where shein has no access rights.
For Reliance, the partnership marks a deviation from its traditional strategy to include brands – such as the Japanese Muji – in his flagship Ajio Fashion app. The addition of Shein to the India portfolio of Reliance stands to give the local conglomerate a stronger chance to enter with e-commerce.
Although Reliance operates the largest retail chain in the country – and also the best telecom operator in the country – it has difficulty fighting Flipkart, Amazon, Meesho and a growing number of fast trading companies about online sales. Flipkart, which leads the e-commerce market in India, has an even stronger hold in fashion e-commerce. Flipkart ownership Myntra recently started to deliver some orders of less than 30 minutes.
Shein initially offers delivery in selected cities, including New Delhi, Bengaluru and Mumbai and plans to expand the “very quickly”, according to the App description. The company does not charge delivery costs for every order. Products include dresses priced from 199 rupees ($ 2.3), where all items are designed and manufactured in India by local manufacturers.
The deal is a rare exception to the prohibition of India to Chinese apps, which has hit more than 300 platforms since 2020. To guarantee approval, Shein agreed with unprecedented supervisory measures, including regular security audits by the government approved cyber security companies.
Minister of Trade Piyush Goyal recently said that the approval process expanded extensively by several ministries, including IT and the Interior. The scheme is intended to stimulate the textile production sector of India while retaining strict data on sovereignty, he said.
