Ambani’s are leaving no stones unturned when it comes to the future of India’s retail sector. Now, under Isha Ambani’s leadership, Reliance Retail brings the most loved and affordable fashion online store, Shein. After five long years of ban in the Indian market, Chinese brand Shein re-enters the Indian market under Reliance Retail.
Shein is back in India with a massive download number that grows every second at 10,000 after its app launch in Google’s PlayStore. While the app’s ranking among the top 10 in Apple stores clearly shows its demand among the masses.
However, since 2020 things have changed for the Chinese online fashion giant leading global revenue charts that even Zara and H&M are finding it tough to compete with its dynamic pricing. Now the online fashion brand is based in Singapore and partnered with Reliance Retail to provide affordable fashion goods to the country.
What’s Different About Shein This Time Around?
In 2023, Shein signed a partnership deal with Mukesh Ambani’s company Reliance Retail led by Isha Ambani Piramal. As the partnership goes, Reliance Retail Limited a subsidiary under Reliance Retail Ventures Ltd. (RRVL) will work together with Roadget Business Pte Ltd. owner of Shein to develop an Indian version of Shein’s e-commerce platform to sell fashion products.
However, now only local manufacturers and suppliers can sell products under the Shein brand. So, a new platform for Indian customers to purchase domestic. The best part is that local manufacturers get a new platform to sell their products to international customers under Shein brand.
This strategy, therefore helps both Indian manufacturers and suppliers gain a new source of income and boost their profitability, while Shein gets to capture the fastest-growing market of fashion goods, India.
According to Piyush Goyal, the Commerce and Industry Minister of India, “The license agreement covered the protection that ownership and control of the platform will always remain with RRVL through its wholly owned subsidiary.” Adding further he said, “As per the agreement, at all times, the platform will be hosted on infrastructure in India and all platform data will remain in India with Shein having no access to, or rights over, such data.”
This safeguards the “threat to sovereignty and integrity” of the country and its countrymen from data leaks. However, Shein’s indigenous route has some negatives as well, below-par quality, no accessories, minimum varieties, and all Indian brands.
Why Was Shein Banned?
The escalated India-China border dispute in Galwan Valley led to India banning several Chinese applications in India. Some of these apps TikTok, PUBG, and Shein made global headlines because of the ban encouraging several other countries to implement such bans on Chinese applications.
Although security and data leaks were the major reasons cited for banning 59 Chinese applications in India. Now, Shein is back after five years in the Indian market; however, the data on the Shein app remains under Indian laws. So, the app infrastructure follows a properly consented agreement that keeps your data secure with Reliance Retail Ventures Ltd.
