What: Shein returns to the Indian market through Reliance Retail partnership, featuring local manufacturing agreements and data protection measures.

Why it is important: This strategic re-entry demonstrates how international brands can navigate regulatory challenges through local partnerships whilst tapping into India's projected $50 billion fast fashion market.

Reliance Retail has orchestrated Shein's return to the Indian market, launching an independent app following a successful two-month trial on their Ajio platform. This revival comes nearly five years after the Chinese fast fashion label's ban in India. The partnership, established through a technology agreement between Reliance Retail Ventures Ltd and Roadget Business Pte Ltd, emphasises local manufacturing and data protection. Commerce Minister Piyush Goyal has confirmed that Shein will have no access to customer data, with the platform being entirely indigenous. The arrangement includes developing a network of local manufacturers and suppliers to produce items under the Shein brand name. This strategic move aligns with India's fast fashion market projections, which anticipate sales exceeding $50 billion by FY31, potentially representing 25-30% of the overall fashion retail sector. Shein, now Singapore-based, brings its global presence spanning 150 countries and social media following of over 250 million to this partnership.

IADS Notes: Recent developments in India's retail landscape provide crucial context for this re-entry. As noted in September 2024, India emerged as the most attractive emerging market for retail expansion, while December 2024 saw the establishment of Free Trade Warehousing Zones to support international retail operations. The timing is particularly significant as January 2025 data shows major retailers like Reliance successfully launching international brand partnerships, demonstrating the market's readiness for sophisticated retail operations. This move aligns with broader industry shifts, as highlighted in November 2024, where fashion brands increasingly view India as a key market for diversified sourcing and retail expansion.

Reliance Retail brings Shein back to India after 2020 app ban