The ban on Chinese apps and products by the Indian government in 2020 had two major casualties: TikTok and Shein. While TikTok is well-known, Shein also had significant presence in India four years ago.
However, the setback in India did not stop Shein’s global momentum, just as it did not hinder TikTok’s rise to its current status. In 2022, Shein became the largest online-only fashion company in the world.
According to a report by The Economic Times (ET), after more than a year of partnership, Reliance Retail Ventures in India is preparing to launch Shein in the country in the coming weeks. The strategic partnership aims to offer Shein’s products both online and in Reliance Retail’s physical stores.
Shein, a globally recognised fast-fashion brand founded by Chris Xu in 2008, was banned in India in 2020 as part of a broader crackdown on Chinese apps due to escalating border tensions. This upcoming launch marks the brand’s return to the Indian market after a four-year absence, through a collaboration with Mukesh Ambani-owned Reliance Retail.
Valued at an impressive $10 billion, Shein accounted for nearly one-fifth of the global fast-fashion market in 2022, surpassing giants like Zara and H&M. To put this into perspective, Shein was established in 2008, while Zara was founded in 1975 and H&M in 1947.
Since its launch in 2018, the brand quickly became a major player by 2020, dominating online searches and influencer-led content. However, the ban in 2020 brought all of that to a halt.
The Indian government banned Shein due to concerns that its Chinese parent company stored or transferred data of Indian customers to China. Although the ban was implemented amid tense geopolitical circumstances, one could argue that Shein’s departure created a gap in the Indian fashion market that direct-to-consumer (D2C) brands quickly filled.
To lead Shein’s operations in India, Reliance is likely to bring on board Manish Chopra, a former director at Meta (Facebook). Additionally, Reliance Retail is establishing boutique studios in select European cities to stay updated on Western fast fashion trends and introduce them to the Indian market promptly.
The operations will be managed by a company wholly owned by Reliance Retail. Shein will not invest equity but will receive a licence fee as a share of the company’s profits, as per the ET report.
Payments to Shein will only come from profits generated within India. Importantly, all data and the app itself will be hosted and stored within India, ensuring that Shein has no access to or control over the data.
