Shein returns to India after a four-year ban, making a significant comeback through its partnership with Reliance Retail. The fast-fashion giant has launched its casual women’s western wear collection on Ajio, reigniting its presence in the competitive Indian market.
Shein partners with Reliance Retail for re-entry
Reliance Retail Ventures Ltd. has enabled Shein’s return to India. Reports reveal that Shein has begun cataloging its collections on Ajio, laying the groundwork for a phased rollout. This collaboration positions Shein to directly compete with established players like Tata’s Zudio and Myntra.
Why was Shein banned in India?
In June 2020, the Indian government banned Shein alongside over 50 Chinese apps. This action, prompted by national security concerns and escalating border tensions, forced Shein to exit the market. Despite the ban, demand for Shein products remained strong, with items sold through third-party vendors on platforms like Amazon.
India’s fast-fashion market offers opportunities
India’s fast-fashion market is flourishing, with projections exceeding $50 billion in sales by FY31. Analysts expect this segment to contribute up to 30% of the country’s overall fashion retail. Given this potential, Shein’s timing for re-entry aligns with the industry’s rapid growth.
Building a localised ecosystem
Shein’s partnership with Reliance includes a tech agreement with Roadget Business Pte Ltd. This initiative focuses on leveraging local manufacturers and suppliers to produce and sell Shein-branded items. To meet regulatory standards, its infrastructure and data storage will remain India-based.
The road ahead for Shein in India
Shein’s comeback reflects its determination to regain its foothold in the Indian market. The partnership with Reliance not only provides a robust platform but also allows Shein to reconnect with its loyal customer base. However, with rising competition, the brand must innovate to stay ahead.
