Shein to Enter the Indian Market Again After Four Years with the Launch of Reliance Ajio

Mukesh Ambani and his daughter, Isha Ambani, are leading the test launch of Shein's casual women's western wear on the Ajio platform via Reliance Retail. The Chinese fast-fashion brand has returned to the Indian market after nearly four and a half years of restriction.

Shein has started testing and classifying its collection on Ajio. The rollout may eventually expand to additional platforms, but no firm timeframe for the full-scale debut has been established, according to reports.

Shein, which is currently located in Singapore, will compete directly with Tata Group's Zudio and Flipkart's Myntra in the inexpensive fast-fashion category. The brand's re-entry follows a deal formed last year with Reliance Retail Ventures Ltd to market its product line to Indian consumers.

Shein's Indian operations ceased in June 2020, when the government blocked the app due to escalating tensions over the India-China border issue. The restriction was part of the Ministry of Electronics and Information Technology's (MeitY) broader move against more than 50 Chinese apps.

Commerce and Industry Minister Piyush Goyal recently announced in a written response to the Lok Sabha that Shein's activities would be housed on an indigenous retail platform with all infrastructure based in India. He stated that Shein would not have access to or control over the platform's data. The Ministry of Textiles, in cooperation with MeitY and the Ministry of Home Affairs, had 'no opposition' to Reliance Retail's request.

Fast fashion's increasing horizon

Meanwhile, the Indian fast-fashion business is expected to exceed $50 billion in sales by FY31, according to Redseer Strategy Consultants. The survey also estimates that fast fashion might contribute 25-30% of India's total fashion retail market by then, despite fierce competition from several unorganised firms.

Goyal added that Reliance Retail has signed a technological partnership with Roadget Business Pte Ltd to develop a local e-commerce platform. This effort aims to develop a network of domestic manufacturers and suppliers that will produce and sell products under the Shein brand.

Ban on Shein in India

Shein, a renowned worldwide e-commerce platform recognized for its quick fashion, was founded in 2008 in Nanjing, China, by Chris Xu. The brand is mostly online and is available in over 220 countries.

Shein was banned in India in June 2020, along with 58 other Chinese apps, as tensions with China rose over a border dispute. The Indian government restricted these apps under Section 69A of the Information Technology Act, citing national security concerns and potential threats to sovereignty. Allegations of data privacy issues, including unauthorised data sharing, also influenced the judgment. Despite the restriction, Shein's items remained available on outlets such as Amazon.