Shein to re-enter Indian market after 4 years with Reliance's Ajio launch

Shein to re-enter Indian market after 4 years with Reliance's Ajio launch

Mukesh Ambani, along with his daughter Isha Ambani, is spearheading the pilot launch of Shein’s casual women’s western wear on the Ajio platform through Reliance Retail. This marks the return of the Chinese fast-fashion brand to the Indian market after a ban of nearly four and a half years.

 

According to a report by The Economic Times, Shein has begun testing and cataloging its collection on Ajio. The rollout may later expand to other platforms, but no fixed timeline has been set for the full-scale launch, the source said, as quoted by the report.

 

Shein, now headquartered in Singapore, will directly compete with Tata Group’s Zudio and Flipkart-owned Myntra in the affordable fast-fashion segment. The brand’s re-entry follows a partnership signed last year with Reliance Retail Ventures Ltd to introduce its range to Indian consumers.  

 

 

Shein’s Indian operations ended in June 2020 when the government banned its app amid rising tensions over the India-China border dispute. The ban was part of a broader action against over 50 Chinese apps by the Ministry of Electronics and Information Technology (MeitY).  

 

Recently, Commerce and Industry Minister Piyush Goyal confirmed in a written reply to the Lok Sabha that Shein’s operations would be hosted on an indigenous retail platform with its infrastructure based entirely in India. He said that Shein would neither access nor have rights over the platform’s data. The Ministry of Textiles, in consultation with MeitY and the Ministry of Home Affairs, raised ‘no objection’ to the proposal from Reliance Retail.  

 

A Reuters report cited data indicating Shein’s revenue growth slowed to 23 per cent in the first half of this year, down from 40 per cent the previous year, as it prepares for a stock market listing in London.  

Fast-fashion’s expanding horizon

Meanwhile, the Indian fast-fashion market is projected to surpass $50 billion in sales by FY31, according to Redseer Strategy Consultants. The report also suggests that fast fashion could contribute 25-30 per cent to India’s overall fashion retail market by then, though the sector faces stiff competition from numerous unorganised players, The Economic Times report said.

 

Goyal further said that Reliance Retail has entered into a technology agreement with Roadget Business Pte Ltd to build a local e-commerce platform. This initiative aims to create a network of domestic manufacturers and suppliers for producing and selling products under the Shein brand name, the report said.  

Ban on Shein in India

Founded in 2008 by Chris Xu in Nanjing, China, Shein is a leading global e-commerce platform known for its fast fashion. The brand operates primarily online and is present in over 220 countries.

 

In June 2020, Shein was banned in India alongside 58 other Chinese apps amid rising tensions with China over a border dispute. Citing national security concerns and risks to sovereignty, the Indian government blocked these apps under Section 69A of the Information Technology Act. Allegations of data privacy violations, including unauthorised data sharing, also played a role in the decision. Despite the ban, Shein’s products continued to be available through platforms like Amazon.