Chinese fashion giant Shein returns to India, five years after its ban
Chinese fast fashion giant Shein has made its return to India, five years after being banned, under a new deal with Indian firm Reliance Retail. An unnamed Reliance Retail official confirmed to the BBC that the company has entered into a long-term licensing agreement with Shein’s parent company to sell products made and sourced within India on the platform. An official announcement from the group has not yet been made.
Shein’s re-entry to the Indian market is subject to strict conditions, including a mandate to store all data within the country, as stated by India’s Commerce Minister Piyush Goyal in December. The app was banned in 2020 along with dozens of other Chinese apps, including TikTok, over concerns regarding data security, amid escalating tensions between India and China following border clashes in the disputed Himalayan region.
The app launched in India on Friday night and has already been downloaded by over 10,000 users, offering fashion items starting at 199 rupees ($2.30; £1.90). Initially, Shein will only deliver to Delhi, Mumbai, and Bengaluru, but the app plans to expand nationwide soon.
Shein has transformed over the past decade from a niche brand to one of the largest global fast fashion retailers, shipping to customers in 150 countries. Before the ban, Shein was a popular choice in India, offering trendy and affordable fashion. Its absence left a gap in the market that has since been filled by local competitors.
Experts suggest that Reliance Retail, owned by Indian billionaire Mukesh Ambani, is using Shein India to diversify from its traditional focus on selling international brands through its Ajio online platform. Under the new deal, Reliance Retail will maintain full control over operations and data, with Shein acting as a technological partner. All customer and app data will be stored in India, with Shein not given access, as confirmed by Goyal in December.
While Shein’s app was banned, Goyal clarified that the ban did not extend to the sale of Shein-branded products. Shein plans to use India as a source for global operations and will collaborate with Reliance Retail to help train Indian garment manufacturers and promote the export of textiles and garments from India, according to Reliance Retail officials.
Shein’s return marks a rare exception to India’s broader ban on over 200 Chinese apps in the last five years. At the time of the ban, officials cited concerns that these apps were “stealing and surreptitiously transmitting users’ data.” Other banned apps, such as ByteDance’s TikTok and the popular game PUBG, were also affected, though PUBG later returned under a rebranded name, Battlegrounds Mobile India (BGMI), operated by Krafton India.
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