Chinese fashion giant Shein is making a comeback in India, five years after it was banned. The company’s return comes with a new business model, focusing on local partnerships and compliance with Indian regulations.
After being banned in 2020 along with several other Chinese apps, Shein is officially re-entering the Indian market, marking a major comeback for the fast-fashion giant. The brand, known for its trendy and affordable clothing, is making its return through a strategic partnership with Reliance Retail, one of India's biggest retail players.
Why Was Shein Banned?
Shein was among the
59 Chinese apps banned by the
Indian government in June 2020 due to
data security concerns and rising tensions between India and China. The government cited risks related to
user data privacy and national security as reasons for the move.
Despite the ban, Shein remained popular among Indian shoppers, with many turning to
third-party sellers and international shipping to access its products.
How Is Shein Making a Comeback?
This time, Shein is
not operating independently in India. Instead, it has partnered with
Reliance Retail, ensuring that all
operations, logistics, and data management are handled by an
Indian entity.
Key changes in Shein’s India relaunch:
- Local Supply Chain: Products will be sourced, manufactured, and distributed within India.
- Data Compliance: User data will be stored in India to comply with data protection laws.
- Reliance Retail Partnership: Shein will operate under Reliance’s e-commerce and retail platforms, avoiding direct Chinese control.
What This Means for Indian Shoppers
Shein’s return is expected to
disrupt the fast-fashion market, competing with brands like
H&M, Zara, and Myntra. Indian consumers can once again access Shein’s vast catalog of
affordable, trend-driven fashion, but with greater
regulatory oversight.
Challenges & Controversies
While Shein’s return is welcomed by its loyal customers, concerns still linger about:
- Job impact on local brands: Fast fashion could hurt Indian designers and smaller retailers.
- Ethical concerns: Shein has faced criticism globally over labor practices and environmental impact.
- Political backlash: Given India-China relations, Shein’s comeback could face regulatory scrutiny.
With a
new business model and Indian partnerships, Shein is poised to regain its foothold in
India’s booming e-commerce market. However, its success will depend on how well it
addresses past concerns and adapts to
India’s evolving retail landscape.
