Returning to business after five years, China’s fast-fashion giant Shein has been able to re-enter the Indian market with a strategic license deal with Reliance Retail. It is a significant move after the app was banned in 2020 on national security reasons during the escalation of India-China tensions.
Shein According to a Reliance Retail spokesperson who wished to stay anonymous, Reliance has inked a long-term deal with Shein’s parent company that will allow the latter to sell locally sourced and manufactured products within India. As much as the collaboration has not been publicly announced, the terms of the arrangement specify that Shein will be forced to comply with stringent conditions, such as a requirement to store all the user data within India. Such conditions were reinforced by India’s Commerce Minister Piyush Goyal in December 2024.
Re-entry with Conditions
Shein’s return is not unconditional. As a sequel to the 2020 ban, issued in response to concerns regarding data security and the broader geopolitical environment, Shein’s operations are now tightly regulated. Goyal reaffirmed Shein had resumed operations but that the model for handling data was in place to ensure all the data pertaining to customers and the app would be stored in India. Shein, in the new arrangement, will have no access to any of this data, providing Reliance Retail with full operating control.
The app formally launched on the evening of Friday, February 2, 2025, and within hours had been downloaded more than 10,000 times. Shein’s collection of trendy clothing is available for as little as 199 rupees ($2.30; £1.90), attracting a broad spectrum of consumers. Deliveries are presently limited to Delhi, Mumbai, and Bengaluru, but are to be rolled out nationwide in the near future, according to an in-app notice.
Comparative Chart of App Downloads for Fashion Retail Competitors (as of February 2025)
| Brand/Competitor | App Launch Date | Downloads (as of Feb 2025) | Target Market | Availability (Regions) | Price Range |
|---|---|---|---|---|---|
| Shein | Feb 2, 2025 | 10,000+ (within hours) | Budget fashion | Delhi, Mumbai, Bengaluru (nationwide soon) | ₹199 (~$2.30/£1.90) |
| Myntra | 2014 | 50M+ | Mid-range to premium | Nationwide | ₹499 (~$6/£5) |
| Ajio | 2016 | 25M+ | Mid-range to premium | Nationwide | ₹299 (~$3.50/£3) |
| H&M | 2016 | 100M+ | Global fashion | Nationwide | ₹399 (~$4.70/£4) |
| Zara | 2014 | 80M+ | Premium fashion | Nationwide | ₹1,199 (~$14/£12) |
| Amazon Fashion | 2016 | 500M+ | Broad range, all prices | Nationwide | ₹199 (~$2.30/£1.90) |
Shein’s Meteoric Global Rise
Shein’s return to India comes after a decade of meteoric rise, from a comparatively modest brand to one of the biggest fast fashion retailers in the world. The company now ships to more than 150 countries, with its value-for-money, fashion-forward clothing drawing a huge global fan base.
Before it was banned, Shein was a very popular brand in India, with its fashion, value-for-money offerings luring young consumers. Shein’s sudden exit left a gap in the market, which was eventually occupied by domestic players. With its revival, Shein can regain the lost market share, particularly in the fast fashion category.
A Strategic Move by Reliance Retail
For Reliance Retail, it marks a turning point for the company. Till date, Reliance has sold international brands through its Ajio e-commerce portal, and it now wants to enhance its offerings with Shein back in its portfolio. Shein’s resurrection comes with total control, and here, Indian conglomerate Reliance will manage the operations as well as handle the data security of the entity.
Additionally, Shein is likely to use India as one of its primary manufacturing bases globally. The deal is also expected to supplement Reliance’s initiatives toward strengthening India’s textile and garment export industry as it provides hand-holding and training to the domestic manufacturers. Reliance Retail had clarified that the deal is actually building up a strong network for Shein in India while propelling the country’s position as a global leader in textile production.
The Wider Context: India’s Strict Stance on Chinese Apps
The return of Shein to the Indian digital space is considered an exception given the overall drive by India into cracking down all Chinese applications. Already in 2020, over 200 Chinese apps faced ban due to violation of privacy on data whereas Shein would stand out. The ban arose as a precursor from unauthorized transfer of data transmission and increased safety risks due to the tense international political situation arising between India and China.
Other Chinese apps which were restricted around the same period include TikTok and PlayerUnknown’s Battlegrounds (PUBG). Although TikTok is still prohibited, PUBG was rebranded and was relaunched as Battlegrounds Mobile India (BGMI) under Krafton India’s ownership.
A New Chapter for Shein in India
With its new model of data protection and strategic alliance with Reliance Retail, Shein’s return to India is a strategic step in a bid to regain its position in one of the world’s largest and most dynamic markets. With its business sailing through the intricate realm of India’s regulatory environment, its return is a milestone in the world’s e-commerce and geopolitics drama.
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