Chinese fast fashion giant Shein has re-entered the Indian market under a licensing agreement with Reliance Retail, nearly five years after the app was banned amid a diplomatic dispute between India and China.
Reliance, owned by billionaire Mukesh Ambani, launched the Shein India Fast Fashion app on Saturday, a person familiar with the matter confirmed. However, the company has yet to announce the launch officially.
Shein, originally founded in China and now headquartered in Singapore, was banned in India in 2020, along with several other Chinese apps, including TikTok, due to concerns over data security following border tensions between the two countries.
The Indian government has imposed strict conditions on Shein’s comeback. According to Commerce Minister Piyush Goyal, all customer and application data must be stored within India, with Shein having no access to it.
Reliance Retail, which will oversee manufacturing and sourcing, controls the brand’s operations in India. The partnership does not involve any equity investment but rather a licensing model under which Reliance will pay Shein a licence fee to use its brand name.
In addition to its Indian operations, Shein will use the country as a sourcing hub for its global business, working with Indian garment manufacturers to expand exports in the textile sector.
Shein is delivering only in New Delhi, Mumbai, and Bengaluru, with plans to expand nationwide in the coming months. The app offers affordable fashion, with prices starting as low as $2.30.
Upon opening the app, a message greeted users with the phrase, "The fashion OG is back."
Shein’s return marks a strategic move by Reliance Retail, which has been expanding its portfolio of international brands through its flagship fashion platform Ajio. The company already partners with brands like Superdry and Gap, competing with Walmart’s Myntra and Flipkart in India’s booming e-commerce sector.
While Shein-branded products are currently sold only through the new standalone app, a second person familiar with the matter said they will eventually be integrated into Ajio’s platform, though no timeline has been provided.
India has banned over 200 Chinese apps in recent years, citing concerns over unauthorised data transmission. While some apps, such as PUBG, have returned under rebranded versions, Shein’s comeback remains a notable exception, facilitated by Reliance Retail’s involvement.
Shein is also in the process of listing on the London Stock Exchange after abandoning plans to go public in the US, following concerns raised by US lawmakers over China’s influence on companies listing abroad.
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