China's SHEIN enters India as labels appear on Reliance's AJIO
Reliance Retail has launched a backend test of Chinese fast fashion label, SHEIN, on its AJIO platform. The development comes nearly five years after the Indian government banned the brand. An executive privy to the plans told ET that "SHEIN has begun testing and cataloging its casual women's westernwear on AJIO." However, there are no timelines for a full-scale launch as of yet.
SHEIN's re-entry and competition in Indian market
SHEIN, the global fashion giant now based in Singapore, will be competing with Tata Group's value fashion chain Zudio and Flipkart-owned Myntra in India. The competition will be in the fast fashion and affordable space. Last year, Reliance Retail had partnered with SHEIN to sell its fast-fashion range in India on its platforms.
SHEIN's ban and revival in India
The Indian government had banned the SHEIN app back in June 2020, amid rising India-China border tensions. The ban was part of a broader crackdown that witnessed over 50 Chinese apps being banned by the Ministry of Electronics and Information Technology (MeitY). However, a partnership with Reliance Retail has enabled SHEIN to resume domestic sales while complying with government regulations.
Government's stance on SHEIN's operations in India
Recently, Commerce and Industry Minister Piyush Goyal said an indigenous retail platform for SHEIN will be hosted on infrastructure in India. He clarified that SHEIN will not get access to or rights over any data on this platform. Goyal also revealed the Ministry of Textiles, after consulting MeitY and the Ministry of Home Affairs, had "no objection" to Reliance Retail's proposal.
SHEIN's financial performance and Indian fast fashion market
According to a Reuters report, SHEIN's revenue growth slowed to 23% in H1 2024, down from 40% last year. This slowdown came ahead of a stock market listing in London. Meanwhile, a Redseer Strategy Consultants study predicts the Indian fast-fashion market will exceed $50 billion in sales by FY31. The study also predicts fast fashion will make up 25-30% of overall fashion retail by FY31 in India.
