3 years after ban, Shein joins hands with Reliance to make a comeback to India

Almost three years after it was banned, Chinese online fast fashion brand Shein is set to re-enter the Indian market. As per a PTI news agency report, citing industry sources, the brand will make its comeback in collaboration with leading Indian retailer Reliance Retail.

In June 2020, Shein was one of the many apps banned from Indian markets.Now, Shein has entered into a partnership with Reliance, one of India's leading companies, to capitalise on one of the fastest-growing fast fashion markets in the world.

Reliance Retail, a subsidiary of Mukesh Ambani's Reliance Industries, whichhas a wide range of fashion brands under its umbrella,also stands to benefit from this collaboration. While Reliance Retail is yet to confirm the news, it is believed that Shein will operate through Reliance Retail's retail arm.

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By joining forces with Reliance Retail, Shein aims to make a strong comeback to India and overcome the challenges it previously faced. The partnership is not only beneficial toShein's expansion plans but also offers Reliance Retail the advantage of collaborating with a well-known online fashion brand.

This strategic alliance will reportedly allow Shein to make use of Reliance Retail's sourcing capabilities, warehousing, and logistics infrastructure, as well as tap into the retailer's extensive network of online and offline stores.

Shein, which is currently facing scrutiny in some markets like the United States regarding sourcing practices, reportedly sees the Indian market as an opportunity.

PTI also reports that, as per its source, through this partnership, Shein will be sourcing for its global operation in the middle east and other markets.

Why was Shein banned in India?

Shein was established in 2008. The company's affordable pricing and trendy women's wear and other apparel are behind its popularity among millennials. However, in June 2020, India'sMinistry of Electronics and Information Technologyimposed a ban on the brand due tothe escalating tensions between India and China on the Himalayan borders.

Although the Indian government banned Shein along with 59 other apps due to concerns about national sovereignty and integrity, the brand's products continued to be available through e-commerce platforms like Amazon. The issuewas also brought before the Delhi High Court and in July 2022,the courtissued a notice to the government seeking a ban on the sale of Shein products on Amazon.

(With inputs from agencies)

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