After a four-and-a-half-year absence, Chinese-origin fast-fashion giant Shein is re-entering the Indian market through a strategic partnership with Reliance Retail. The brand’s app was initially banned on June 29, 2020, as part of a government crackdown on over 200 Chinese apps under national security concerns.
The relaunch is being conducted as a backend test on Reliance’s Ajio.com, primarily offering casual westernwear. While a broader rollout to other Reliance platforms is expected, no definitive timeline has been announced. Now headquartered in Singapore, Shein’s partnership with Reliance positions it to challenge major competitors like Tata’s Zudio and Flipkart’s Myntra in India’s affordable fashion segment. Reliance Retail Ventures Ltd. had formalized its collaboration with Shein last year to facilitate this return.
Shein: A Global Fast-Fashion Leader
In September 2024, Shein was recognized as the world’s most visited fashion and apparel website, according to Similarweb data. The platform captured 2.68% of global web traffic in Q3 2024, surpassing leading brands like Nike, H&M, and Zara.
Shein’s growth trajectory has been exceptional, with its transaction-making user base increasing by nearly 40% between January and August 2024, as reported by Earnest. This surge has made Shein the fastest-growing international fashion platform, rivaled closely by TikTok.
Global Success and Competition
In the US, Shein’s affordable pricing has created competition for e-commerce giant Amazon, which recently launched a budget-friendly storefront to attract similar customers. Shein’s primary audience in the US—young women seeking low-cost, trendy apparel—has driven its success and forced Amazon to adapt.
In France, Shein’s sales in 2023 reportedly surpassed brands like H&M, Primark, and Kiabi, making it the second-largest fashion retailer after Zara. By late 2024, industry speculation suggests Shein may have even overtaken Zara in sales within France.
Shein’s India Strategy
The brand’s re-entry into India includes a technology agreement between Reliance Retail Ventures Ltd. and Roadget Business Pte Ltd. to create a local e-commerce platform. This initiative aims to build a supply chain of Indian manufacturers and suppliers to produce and sell Shein-branded products domestically.
Commerce Minister Piyush Goyal emphasized that Shein’s Indian platform will operate on domestic infrastructure, ensuring data security and limiting the company’s access to sensitive data. The Ministry of Textiles, along with other government bodies, has given its approval for Reliance Retail’s proposal.
Regulatory Challenges in the EU
Shein has also faced new regulatory requirements in Europe under the EU’s Digital Services Act (DSA). This was triggered after Shein’s EU user base exceeded 45 million monthly active users, categorizing it as a “very large online platform.” The DSA mandates stricter content moderation and transparency, which Shein must now comply with to maintain its European market share.
With its re-entry into India and expanding global footprint, Shein is solidifying its position as a dominant player in the fast-fashion industry. However, the challenges of compliance, competition, and public scrutiny will test its resilience in the evolving market landscape.
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