Reliance brings back China’s Fast Fashion Shien Store to India: The RBC news outlet of Russia reports the circumstances surrounding the return of Chinese fast-fashion retailer Shein to the Indian market in early 2025, following a five-year ban imposed in 2020 due to national security concerns. It also highlights Shein’s initial rapid success in India, the reasons for its ban, and the significant concessions and strategic partnership with Reliance Industries that have facilitated its re-entry.
Shein’s resurgence in early 2025 is all set through a strategic partnership with Indian conglomerate Reliance Industries. Shein’s return comes with strict conditions, including mandatory domestic production and local data storage, addressing previous governmental concerns. The collaboration aims to leverage India as a manufacturing hub for Shein’s global operations while intensifying competition in the Indian fast-fashion sector. Ultimately, this partnership provides Shein access to a vast consumer base and bolsters Reliance’s retail presence.
Shein’s Initial Success and Rapid Growth (2017-2020)
Shein entered the Indian market in 2017 and quickly gained popularity, driven by significant marketing investments (2.5 billion rupees, approx. $35 million), including influencer engagement and social media promotion.
The company focused on inexpensive women’s clothing but also offered other fashion items.
Within a year, the Shein app achieved 5 million downloads in India, and the company recognised growth potential in smaller towns.
Shein actively engaged with local designers to create “fusion and Indo-Western clothing for Indian audiences.”
Business in India tripled in under a year, with a million active users placing 10,000 daily orders. The average order value was between 1,000 and 1,500 rupees ($15-22).
Shein demonstrated its commitment to the market by hosting the “SheinxMe Fashion Show” in Mumbai in July 2018.
Reasons for the 2020 Ban
Difficulties began in 2019 when Indian customs authorities in Mumbai confiscated 500 parcels belonging to Shein’s Indian legal entity, Sino India Etail. The company was accused of “understating the cost of imported clothes in order to evade customs duties.” This incident led to stricter e-commerce import regulations.
In June 2020, Shein and 58 other Chinese apps, including TikTok and WeChat, were banned in India.
The official grounds for the ban were that these apps “pose a threat to the country’s security.”
Specifically, India’s Ministry of Electronics and Information Technology accused Shein and other Chinese apps of “violating the privacy of Indian users’ data and illegally collecting information.”
The ban also occurred against the backdrop of “an aggravation of the military conflict with China in Eastern Ladakh.” By the time of the ban, the Shein app had been downloaded approximately 50 million times in India.
Strategic Return in Partnership with Reliance Industries (2025)
In early February 2025, it was reported that Shein had resumed operations in India through a partnership with “one of the country’s largest holdings, Reliance Industries,” owned by billionaire Mukesh Ambani.
Reliance has a significant presence in various sectors, including retail, petrochemicals, telecommunications, and financial services.
Shein has relaunched its mobile app and Indian website (Sheinindia.in) with a low-key approach, managed by NextGen Fast Fashion, a subsidiary of Reliance Retail Ventures.
Prior to the full relaunch, Shein had been operating for several months as part of Reliance’s online retailer Ajio.
The Shein app has already seen over 10,000 downloads on Google Play and ranks ninth among similar apps in the App Store. The app features a banner stating “The OG is back”.
Initially, delivery is limited to Mumbai, Navi Mumbai, Thane, Bangalore, and New Delhi, but national expansion is planned.
The agreement between Shein and Reliance Retail was signed in May 2023, highlighting a significant period of preparation for the re-entry.
This collaboration provides Shein with access to India’s “huge consumer base,” particularly as the company faces increased taxes in the U.S. and considers a major IPO in London.
Interestingly, the Minister of Commerce and Industry stated in December 2024 that “the sale of Shein products in India had never been banned, only the service itself was blocked.”
Strict Conditions for Re-entry
Shein’s return was contingent upon agreeing to “a number of conditions” imposed by Indian authorities.
The key condition is local production: “all Shein products for the Indian market should be produced domestically.”
Reliance will play a crucial role in this, with a “long-term licensing agreement under which Shein will purchase goods from Indian manufacturers.” Reliance essentially “rents” the brand and pays Shein a license fee. Shein does not hold equity in the Indian business.
Crucially, “all customer data will be stored in India and Shein will not have access to it.” The platform’s servers are located within the country, and regular security audits according to Indian standards are mandatory. These measures directly address previous concerns about data privacy.
Shein has also committed to “support the development of local suppliers by opening training programs for more than 25,000 small Indian manufacturers” to produce for both domestic and export markets.
A Reliance Retail representative indicated that “Shein plans to use India as a production base for its global operations,” aiming to “help create a network of suppliers and train Indian clothing manufacturers, contributing to the growth of textile exports from India.”
Implications for the Indian Retail Market
Shein’s return is expected to “strengthen Reliance’s position in the fight against growing competition from Trent (fast fashion retailer Tata Group) and Flipkart India, backed by Walmart, which owns the fashion app Myntra.”
While Reliance Retail has faced “weak demand,” Trent’s success in affordable fashion has made Tata a strong performer in the Indian stock market.
Karan Taurani, an analyst at Elara Securities India Pvt., believes that “Reliance has not yet demonstrated outstanding results in retail, but this partnership will strengthen its consumer offering.” He also noted that “‘Fast fashion in India is a huge market with tremendous potential.'”
According to Redseer Strategy Consultants, the Indian fast fashion market is projected to exceed $50 billion by 2031.
Conclusion
Shein’s return to the Indian market after a significant ban marks a strategic move facilitated by a major partnership with Reliance Industries and a willingness to adhere to stringent local regulations, particularly concerning domestic production and data security. This re-entry not only provides Shein with access to a vast and growing consumer base but also positions India as a potential global manufacturing hub for the brand. The move is expected to intensify competition within the Indian fast fashion market and could significantly bolster Reliance’s retail ambitions. The success of this renewed venture will depend on Shein’s commitment to the agreed-upon conditions and its ability to navigate the competitive landscape.
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Shein is re-entering the Indian market after being banned in 2020 due to national security concerns. This comeback is facilitated through a partnership with Reliance Retail, India’s largest retailer. Unlike its previous direct-to-consumer model, Shein will now operate under a licensing agreement with Reliance, which will manage local production, sales, logistics, and marketing. Shein’s products will be manufactured in India, aligning with government regulations and the “Make in India” initiative. The collections will be available on Reliance’s Ajio platform and the Shein India Fast Fashion app, initially targeting metro cities like Mumbai and New Delhi, with plans to expand to tier-2 and tier-3 cities.
Shein’s return is expected to reshape India’s fast fashion landscape, offering affordable and trend-driven collections. Dresses may be priced as low as ₹350, with free shipping and easy returns likely to attract first-time buyers. Reliance’s extensive supply chain infrastructure is anticipated to improve delivery times compared to Shein’s earlier operations.
The partnership comes at a time when India’s fast fashion industry is highly competitive, with platforms like Myntra, Ajio, and Flipkart Fashion strengthening their offerings. Homegrown brands and global players like H&M and Zara may face increased competition. Safeguards have been implemented to address data privacy concerns, with Reliance controlling data and transactions and Indian manufacturers producing Shein’s merchandise. This collaboration aligns with government initiatives and positions Shein for long-term success in India’s growing fashion e-commerce market.
