Reliance Retail brings back Shein to India after 5 years
What's the story
Reliance Retail, the subsidiary of Mukesh Ambani's Reliance Industries, has brought Chinese fashion brand Shein back to the Indian market.
The development comes nearly five years after the original Shein app was banned in India amid a diplomatic row.
The new platform, offering affordable clothing made in India, represents a major shift in Reliance's retail strategy as it goes up against other major brands.
Strategic move
A strategic shift for Reliance
The newly launched app, called Shein India Fast Fashion, marks a shift from Reliance's previous strategy of adding brands to its main fashion app, Ajio.
The shift in strategy comes as Reliance competes for market share against rivals like Myntra from Walmart's Flipkart.
The original Shein app was banned in India in 2020 along with other Chinese apps over data security concerns amid strained Indo-Chinese relations.
Licensing deal
A focus on Indian manufacturing
In 2021, the Indian government had informed the Parliament that Reliance had struck a deal with Shein. As part of the deal, Indian manufacturers would make items under the Shein brand name.
The new app shows a message saying "The fashion OG (original) is back," and promises nationwide delivery soon after initial deliveries in select cities like New Delhi and Mumbai.
Expansion plans
Shein's future plans and partnership details with Reliance
Reliance will pay a licensing fee to use the Shein brand name. The partnership doesn't involve any equity investment.
All Shein-branded products sold via the app are designed and manufactured in India and will eventually be available on Ajio.
Meanwhile, Shein is planning to go public in London in H1 2025 after abandoning its US listing attempt due to regulatory hurdles.