Reliance Retail has launched the ‘Shein India Fast Fashion’ app, reviving Shein’s presence in India after a five-year hiatus. The Chinese fashion giant had been banned in 2020 alongside other Chinese apps like TikTok, following escalating diplomatic tensions and concerns about data security.
Founded in 2012 and later headquartered in Singapore, Shein became known for its affordable, Western-style clothing. Despite the ban, Reliance has strategically entered a licensing agreement with Shein, enabling it to sell fashion items designed and manufactured in India under the Shein brand name.
So why would Mukesh Ambani’s Reliance back Shein’s return to India? The move signals Reliance’s ambition to dominate India’s fast-fashion market, capitalising on Shein’s already established global appeal. By offering affordable, trend-driven clothing, Reliance is positioning itself to tap into the burgeoning demand for Western-style fashion, particularly among younger, fashion-conscious consumers. Furthermore, the licensing model allows Reliance to leverage Shein’s brand recognition without directly importing goods from China, which sidesteps the sensitivities tied to the country’s geopolitical issues.
This collaboration could redefine the fashion landscape in India, aligning with Reliance’s broader strategy of transforming retail through tech-enabled, scalable solutions that resonate with the aspirations of India’s youth.
While the specific financial details of the deal were not disclosed, it has been confirmed that Reliance is paying a license fee for using the Shein brand. There is no equity investment in the partnership. Additionally, Shein-branded products sold through the app will be designed and produced locally in India, with plans to make them available on Ajio at a later stage.
Last year, India’s government revealed in Parliament that Reliance had entered an agreement with Shein, under which Indian manufacturers would supply products for Shein’s brand. However, the government did not provide further details about the arrangement.The app will initially be available in select cities, including New Delhi and Mumbai, with plans for a nationwide expansion soon. It offers a range of affordable dresses, starting at Rs 350 ($4).
In another significant move, Shein is reportedly planning a listing in London in the first half of this year, after shelving its plans to list in the U.S. due to concerns raised by U.S. lawmakers over China’s requirement for approval to list abroad.
The launch of the Shein India Fast Fashion app brings the brand back to the Indian market, where it has a loyal customer base, offering affordable, trendy apparel to fashion-conscious shoppers.
(With Reuters Inputs)